Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 6Various Measures (continued)
DIVISION 16Financial Sector Legislative Renewal (continued)
SUBDIVISION AFinancial Technology Activities (continued)
321 Section 522.08 of the Act is amended by adding the following after subsection (1):
Marginal note:Permitted investments
(1.1) Subject to subsection (2) and the regulations made under paragraphs (1.2)(a) and (b), a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or hold a substantial investment in, a Canadian entity that a bank may acquire control of, or acquire or increase a substantial investment in, under subsection 468(2.1).
Marginal note:Regulations
(1.2) The Governor in Council may make regulations
(a) imposing terms and conditions in respect of the acquisition or holding of control of, or acquisition or holding of a substantial investment in, a Canadian entity that a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or hold a substantial investment in, under subsection (1.1); and
(b) respecting the circumstances in which a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or hold a substantial investment in, a Canadian entity under subsection (1.1).
322 The Act is amended by adding the following after section 522.08:
Marginal note:Regulations
522.081 The Governor in Council may make regulations
(a) respecting the circumstances in which a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or hold a substantial investment in, a Canadian entity that engages in activities that a bank is permitted to engage in under paragraph 410(1)(b.1) or (c); and
(b) imposing terms and conditions in respect of the acquisition or holding of control of, or acquisition or holding of a substantial investment in, an entity referred to in paragraph (a).
323 Paragraphs 522.22(1)(d) and (d.1) of the Act are repealed.
324 (1) Paragraphs 539(1)(b.1) and (b.2) of the Act are replaced by the following:
(b.1) subject to sections 549 and 550 and the regulations, engage in any activity that relates to the provision of financial services by the authorized foreign bank or any of its affiliates;
(b.2) subject to the regulations, engage in any of the following activities:
(2) Subsection 539(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):
(g) provide identification, authentication or verification services.
(3) Paragraph 539(3)(c) of the Act is replaced by the following:
(c) respecting the circumstances in which an authorized foreign bank may engage in an activity referred to in paragraphs (1)(b.1) and (b.2), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(b.2)(i).
325 Section 543 of the Act is replaced by the following:
Marginal note:Networking
543 (1) Subject to sections 540, 546 and 549 and the regulations, an authorized foreign bank may, in Canada,
(a) act as agent for any person in respect of
(i) the carrying on of any activity referred to in subsection 410(1) or 539(1) that is engaged in by a financial institution, by an entity in which a bank is permitted to acquire a substantial investment under section 468, if that section were read without reference to the requirements of subsections 468(4) to (6), or by a Canadian entity acquired or held under section 522.08, or
(ii) the provision of any service that relates to financial services and that is provided by an institution or entity referred to in subparagraph (i);
(a.1) enter into an arrangement with any person in respect of the carrying on of an activity referred to in subparagraph (a)(i) or the provision of a service referred to in subparagraph (a)(ii); and
(b) refer any person to another person.
Marginal note:Regulations
(2) The Governor in Council may make regulations
(a) respecting the disclosure of the name of the person for whom an authorized foreign bank is acting as agent under subsection (1);
(b) respecting the disclosure of any commission being earned by an authorized foreign bank when acting as agent under subsection (1);
(c) respecting the circumstances in which an authorized foreign bank may act as an agent, enter into an arrangement or refer a person under subsection (1); and
(d) imposing terms and conditions in respect of the carrying on of activities under that subsection.
Marginal note:Regulations
543.1 The Governor in Council may, for the purposes of section 538 and subsection 543(1), make regulations respecting what an authorized foreign bank is prohibited from doing when acting as an agent or when making referrals.
326 (1) Section 930 of the Act is amended by adding the following after subsection (2):
Marginal note:Permitted investments
(2.1) Subject to subsections (3) to (6) and the regulations made under paragraphs (2.2)(a) and (b), a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity that a bank may acquire control of, or acquire or increase a substantial investment in, under subsection 468(2.1).
Marginal note:Regulations
(2.2) The Governor in Council may make regulations
(a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a bank holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and
(b) respecting the circumstances in which a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).
(2) Subparagraph 930(3)(d)(ii) of the Act is replaced by the following:
(ii) in the case of an entity that is not controlled by the bank holding company, a bank would be permitted to acquire a substantial investment in the other entity under subsection 466(2), paragraph 466(3)(b) or (c) or subsection 466(4) or 468(1), (2) or (2.1); or
(3) Subsection 930(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (5)(d) and (d.1).
(4) Paragraph 930(7)(a) of the Act is replaced by the following:
(a) the bank holding company is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the bank holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);
327 The Act is amended by adding the following after section 930:
Marginal note:Regulations
930.1 The Governor in Council may make regulations
(a) respecting the circumstances in which a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity that engages in activities that a bank is permitted to engage in under paragraph 410(1)(b.1) or (c), including the circumstances in which a bank holding company is prohibited from doing so; and
(b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity referred to in paragraph (a).
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