An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
Full Document:
Assented to 2007-03-29
Marginal note:1999, c. 28, s. 35(1)
94. (1) Subparagraph 585(3)(b)(iii) of the Act is replaced by the following:
(iii) has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the authorized foreign bank within the two years immediately preceding the proposed appointment of the firm of accountants as auditor, other than an affiliate that is a subsidiary of the authorized foreign bank acquired under section 522.15.
Marginal note:1999, c. 28, s. 35(1)
(2) Subsection 585(4) of the English version of the Act is replaced by the following:
Marginal note:Notice of designation
(4) Within 15 days after the appointment of a firm of accountants as auditor, the authorized foreign bank and the firm shall jointly designate a member of the firm who meets the qualifications described in paragraph (2)(a) to conduct an audit under subsection 592(1) on behalf of the firm and the authorized foreign bank shall without delay notify the Superintendent in writing of the designation.
Marginal note:1999, c. 28, s. 35(1)
95. Section 598 of the Act is replaced by the following:
Marginal note:Application of sections 244 to 247
598. Sections 244 to 247 apply, with any modifications that the circumstances require, to an authorized foreign bank as if
(a) the reference in subsection 245(1) to “records referred to in section 238” were a reference to “records referred to in subsection 597(1)”; and
(b) the reference in paragraph 246(1)(a) to “records of the bank referred to in subsection 238(1)” were a reference to “records of the authorized foreign bank referred to in subsection 597(1)”.
Marginal note:1999, c. 28, s. 35(1)
96. Subsection 599(5) of the Act is replaced by the following:
Marginal note:Order deemed to be revoked
(5) An order made under subsection 524(1), 528(1) or (1.1) or 534(1) in respect of an authorized foreign bank is deemed to be revoked when the Superintendent authorizes the release of the assets of the authorized foreign bank under subsection (3).
Marginal note:1999, c. 28, s. 35(1)
97. Subsection 601(2) of the Act is repealed.
Marginal note:1999, c. 28, s. 35(1)
98. Sections 602 to 604 of the Act are repealed.
Marginal note:2001, c. 9, s. 164
99. Subsection 606(1) of the Act is replaced by the following:
Marginal note:Confidential information
606. (1) Subject to section 609, all information regarding the business or affairs of an authorized foreign bank, or regarding a person dealing with an authorized foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
Marginal note:1999, c. 28, s. 35(1)
100. Section 608 of the Act is repealed.
Marginal note:2001, c. 9, s. 170(2)
101. Paragraph 619(2)(g) of the Act is replaced by the following:
(g) in the opinion of the Superintendent, any other state of affairs exists in respect of the authorized foreign bank that may be materially prejudicial to the interests of the authorized foreign bank’s depositors or creditors in respect of its business in Canada or to those of the owners of any assets under the authorized foreign bank’s administration in respect of its business in Canada, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the authorized foreign bank or its holding body corporate.
Marginal note:1999, c. 28, ss. 36 and 37
102. Sections 629 to 631 of the Act are repealed.
Marginal note:2001, c. 9, s. 174
103. Subsection 636(1) of the Act is replaced by the following:
Marginal note:Confidential information
636. (1) Subject to section 639, all information regarding the business or affairs of a bank or a foreign bank, or regarding a person dealing with a bank or a foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
Marginal note:1999, c. 28, s. 43
104. Section 638 of the Act is repealed.
Marginal note:2001, c. 9, s. 183; 2006, c. 4, s. 199.1
105. Section 670 of the Act is replaced by the following:
Marginal note:Sunset provision
670. (1) Subject to subsections (2) and (3), bank holding companies shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force.
Marginal note:Extension
(2) The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection.
Marginal note:Exception
(3) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the three-month period before that anniversary or on any day within an extension under subsection (2), bank holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament.
Marginal note:2001, c. 9, s. 183
106. Paragraph 678(2)(a) of the Act is replaced by the following:
(a) respecting applications referred to in subsection (1), including their form and the information to be contained in them, and authorizing the requesting of additional information in respect of such applications;
Marginal note:2001, c. 9, s. 183
107. Paragraph 688(1)(e) of the Act is replaced by the following:
(e) maintain outside Canada any records or registers required by this Act to be maintained in Canada.
Marginal note:2001, c. 9, s. 183
108. Subsection 689(1) of the Act is replaced by the following:
Marginal note:Transferring to other Acts
689. (1) A bank holding company may apply to be continued only as a body corporate under any other Act of Parliament or any Act of the legislature of a province, and it may do so only with the approval in writing of the Minister.
Marginal note:2001, c. 9, s. 183
109. The portion of section 694 of the Act before paragraph (a) is replaced by the following:
Marginal note:Affiliated bank holding company
694. Despite section 693 and subject to section 695, a bank holding company that is affiliated with another entity may, with the consent of that entity,
Marginal note:2005, c. 54, s. 86(2)
110. Subsection 706(5) of the English version of the Act is replaced by the following:
Marginal note:Material to Superintendent
(5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors.
111. The Act is amended by adding the following after section 716:
Marginal note:Exception — conditions before acquisition
716.1 (1) A bank holding company may permit any of its subsidiaries to acquire shares of the bank holding company through the issuance of those shares by the bank holding company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares.
Marginal note:Conditions after acquisition
(2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met.
Marginal note:Non-compliance with conditions
(3) If a bank holding company permits any of its subsidiaries to acquire shares of the bank holding company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 665 and subsection 710(2), the bank holding company must comply with the prescribed requirements.
112. Section 718 of the Act is amended by adding the following after subsection (4):
Marginal note:Exception
(4.1) Subsection (4) does not apply if
(a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 308(4); and
(b) there is to be no return of capital to shareholders as a result of the reduction.
Marginal note:2001, c. 9, s. 183
113. Subsection 722(2) of the Act is replaced by the following:
Marginal note:Notice to Superintendent
(2) The directors of a bank holding company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment.
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