An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
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Assented to 2007-03-29
PART 11991, c. 46AMENDMENTS TO THE BANK ACT
Marginal note:2005, c. 54, s. 80
75. (1) Paragraph 528(1)(a) of the Act is repealed.
(2) Section 528 of the Act is amended by adding the following after subsection (1):
Marginal note:Change of name
(1.1) On application by an authorized foreign bank, the Superintendent may, by order, change the name under which it is permitted to carry on business in Canada or the province in which its principal office is situated as that name or province is set out in the order made under subsection 524(1) or in any other order made under this section.
Marginal note:Transitional
(3) Orders made under paragraph 528(1)(a) of the Act, as that paragraph read immediately before the coming into force of this section, that are in force immediately before that coming into force are deemed to be orders made under subsection 528(1.1) of the Act.
Marginal note:1999, c. 28, s. 35(1); 2001, c. 9, s. 136(1)
76. Paragraphs 529(1)(f) and (g) of the Act are replaced by the following:
(f) in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), if the authorized foreign bank continues to hold a substantial investment in
(i) a bank that is a subsidiary of a foreign bank and the Minister has approved an application for letters patent dissolving the bank made by the subsidiary under section 344, or
(ii) a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for letters patent dissolving the company made under section 349 of that Act; or
(g) maintain outside Canada any records or registers required by this Act to be maintained in Canada.
Marginal note:1999, c. 28, s. 35(1)
77. (1) The portion of subsection 530(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Prohibited names
530. (1) An order made under subsection 524(1) or 528(1.1) may not provide for the use of a name that is
Marginal note:1999, c. 28, s. 35(1)
(2) Subsection 530(2) of the Act is replaced by the following:
Marginal note:Name otherwise prohibited
(2) An order made under subsection 524(1) or 528(1.1) may provide for the use of a name that includes a word referred to in section 47 of the Trust and Loan Companies Act.
Marginal note:1999, c. 28, s. 35(1)
78. Section 531 of the Act is replaced by the following:
Marginal note:Publication of name
531. An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1.1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank.
Marginal note:1999, c. 28, s. 35(1)
79. Subsection 532(1) of the English version of the Act is replaced by the following:
Marginal note:Directing change of name
532. (1) If through inadvertence or otherwise an order made under subsection 524(1) or 528(1.1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction.
Marginal note:1999, c. 28, s. 35(1)
80. Subsection 533(1) of the Act is replaced by the following:
Marginal note:Other name
533. (1) Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1.1).
Marginal note:2005, c. 54, s. 81
81. Subsections 535(1) and (2) of the Act are replaced by the following:
Marginal note:Principal office
535. (1) An authorized foreign bank shall at all times have a principal office in the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.
Marginal note:Change of principal office
(2) An authorized foreign bank may change the address of its principal office within the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.
Marginal note:2001, c. 9, s. 139(2)
82. Paragraph 539(1)(b.3) of the Act is replaced by the following:
(b.3) engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services;
Marginal note:1999, c. 28, s. 35(1)
83. Subparagraph 540(4)(a)(ii) of the Act is replaced by the following:
(ii) a foreign bank described in any of subparagraphs 508(1)(a)(i) to (iii),
Marginal note:1999, c. 28, s. 35(1)
84. Paragraph 543(1)(b) of the Act is replaced by the following:
(b) refer any person to any such financial institution or entity.
Marginal note:1999, c. 28, s. 35(1)
85. Subsections 545(4) and (5) of the Act are replaced by the following:
Marginal note:Notice before opening account or providing prescribed product
(4) Before an authorized foreign bank opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the authorized foreign bank shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product
(a) a notice in writing that the deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and
(b) any other information that may be prescribed.
Marginal note:Other notice
(5) An authorized foreign bank shall, in accordance with any regulations that may be made,
(a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation; and
(b) include in its advertisements notices to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation.
Marginal note:1999, c. 28, s. 35(1)
86. Subsection 551(1) of the Act is replaced by the following:
Marginal note:Restriction on residential mortgages
551. (1) An authorized foreign bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance a loan for that purpose, if the amount of the loan, together with the amount outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
Marginal note:1999, c. 28, s. 35(1)
87. Subsection 557(2) of the Act is replaced by the following:
Marginal note:Provision of information
(2) An authorized foreign bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the authorized foreign bank:
(a) in the case of a deposit,
(i) the name of the depositor in whose name the deposit is held,
(ii) the recorded address of the depositor,
(iii) the outstanding amount of the deposit, and
(iv) the branch of the authorized foreign bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and
(b) in the case of an instrument,
(i) the name of the person to whom or at whose request the instrument was issued, certified or accepted,
(ii) the recorded address of that person,
(iii) the name of the payee of the instrument,
(iv) the amount and date of the instrument,
(v) the name of the place where the instrument was payable, and
(vi) the branch of the authorized foreign bank at which the instrument was issued, certified or accepted.
Marginal note:Copies of signature cards and signing authorities
(2.1) An authorized foreign bank shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.
Marginal note:1999, c. 28, s. 35(1)
88. (1) Subsection 558(1) of the Act is replaced by the following:
Marginal note:Notice of unpaid amount
558. (1) Subject to subsections (1.1) to (3), an authorized foreign bank shall send to each person to whom a deposit referred to in paragraph 557(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid.
Marginal note:Where notice to be sent
(1.1) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system.
Marginal note:1999, c. 28, s. 35(1)
(2) The portion of subsection 558(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:When notice to be sent
(2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period
(3) Section 558 of the Act is amended by adding the following after subsection (2):
Marginal note:Notification of transfer to the Bank of Canada
(3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also
(a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and
(b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.
89. The Act is amended by adding the following after section 566:
Registered Products
Marginal note:Disclosure required concerning registered products
566.1 (1) Subject to subsection (2), an authorized foreign bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the authorized foreign bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service
(a) information about all charges applicable to the registered product;
(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;
(c) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and
(d) any other information that may be prescribed.
Marginal note:Regulations
(2) The Governor in Council may make regulations specifying the circumstances under which an authorized foreign bank need not provide the information.
Definition of “registered product”
(3) In this section, “registered product” means a product that is defined to be a registered product by the regulations.
90. Section 573 of the Act is amended by adding the following after subsection (2):
Marginal note:How procedures to be made available
(3) An authorized foreign bank shall make its procedures established under paragraph (1)(a) available
(a) in the form of a brochure, at its branches where products or services are offered in Canada;
(b) on its websites through which products or services are offered in Canada; and
(c) in written format to be sent to any person who requests them.
Marginal note:Information on contacting Agency
(4) An authorized foreign bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).
91. The Act is amended by adding the following before section 575:
Marginal note:Charges for prescribed products or services
574.1 An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court.
Marginal note:2001, c. 9, s. 158(2)
92. Subsection 576.1(4.1) of the Act is replaced by the following:
Marginal note:Disclosure
(4.1) An authorized foreign bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.
Marginal note:2001, c. 9, s. 159
93. Subparagraph 576.2(a)(iv) of the Act is replaced by the following:
(iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public;
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.
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