Marginal note:Regulations — activities

488.1 The Governor in Council may make regulations respecting any matters involving a company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

• (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 440 and any ancillary, related or incidental activities or services; and

• (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

Marginal note:Restriction on charges to borrowers

• 542.061 (1) Subject to any regulations made under subsection (2), a society that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the society of the insurance or guarantee.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations

  • (a) respecting the determination of the actual cost to a society for the purposes of subsection (1);

  • (b) respecting the circumstances in which a society is exempt from the application of subsection (1);

  • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a society in Canada on the security of residential property,

    • (i) the arrangements into which the society, its representatives and its employees may or may not enter, and

    • (ii) the payments or benefits that the society, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

  • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

• Marginal note:Regulations — disclosure

  (3) The Governor in Council may make regulations respecting the disclosure by a society of information relating to insurance or a guarantee against default on a loan made by the society in Canada on the security of residential property, including regulations respecting

  • (a) the information that must be disclosed, including information relating to

    • (i) the person who benefits from the insurance or guarantee,

    • (ii) the arrangements between the society, its representatives or its employees and the insurer or the insurer’s affiliates, and

    • (iii) the payments and benefits that the society, its representatives and its employees accept from an insurer or the insurer’s affiliates;

  • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

  • (c) the circumstances under which a society is not required to disclose information.

Marginal note:Regulations — activities

606.1 The Governor in Council may make regulations respecting any matters involving a foreign company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

• (a) what a foreign company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under this Act and any ancillary, related or incidental activities or services; and

• (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

Orders to Exempt or Adapt

Marginal note:Order

• 1016.7 (1) On the recommendation of the Minister, the Governor in Council may, by order,

  • (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

  • (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

• Marginal note:Minister’s recommendation

  (2) The Minister may make a recommendation under subsection (1) only if the Minister

  • (a) is of the opinion that the order would relate to

    • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

    • (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

• Marginal note:Terms and conditions

  (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

• Marginal note:Repeal of order under subsection (1)

  (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

• Marginal note:Terms, conditions and undertakings

  (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to

  • (a) the remuneration of the company’s senior officers, as defined in section 678.01, and directors;

  • (b) the appointment or removal of the company’s senior officers, as defined in section 678.01, and directors;

  • (c) the payment of dividends by the company; and

  • (d) the company’s lending policies and practices.

• Marginal note:Acquisition

  (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.

• Marginal note:Payment out of C.R.F.

  (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

• Marginal note:Registration of shares

  (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

• Marginal note:Disposition by Minister

  (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Disposition by agent or agency

  (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Consideration by Minister

  (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

• Marginal note:Mandatory disposition

  (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Not a Crown corporation

  (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act.

• Marginal note:Statutory Instruments Act

  (14) The Statutory Instruments Act does not apply to an order made under this section.

• Definition of “shares”

  (15) For the purposes of this section, “shares” includes

  • (a) any conversion or exchange privilege, option or right to acquire shares; and

  • (b) in reference to a company, participating shares, as defined in section 83.01.

• Marginal note:Insurance holding company

  (16) For the purposes of this section other than paragraph (15)(b), a reference to a “company” includes a reference to an “insurance holding company”, and the references to “section 678.01” in paragraphs (5)(a) and (b) are to be read, in relation to an insurance holding company, as references to “section 1005”.