Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

348 Section 977 of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):

Coordinating Amendments

• 349 (1) On the first day on which both subsections 331(1) and 344(1) of this Act are in force, subsection 495(2.1) of the Insurance Companies Act, as enacted by that subsection 344(1), is renumbered as subsection 495(2.01) and, if necessary, is repositioned accordingly.

• (2) On the first day on which both subsections 331(2) and 344(3) of this Act are in force, subparagraphs 495(3)(d)(ii) and (iii) of the Insurance Companies Act are replaced by the following:

  • (ii) in the case of an entity, other than a permitted infrastructure entity, that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2), (2.01) or (2.1) or 493(2), paragraph 493(3)(b) or (c) or subsection 493(4),

  • (iii) in the case of a permitted infrastructure entity, whether or not that entity is controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (2.01); or

• (3) On the first day on which both subsection 331(1) and section 345 of this Act are in force, paragraph 501(e) of the Insurance Companies Act is replaced by the following:

  • (e) for the purposes of subsection 495(2.01), establishing terms and conditions respecting the acquisition of control of, or the acquisition or increase of a substantial investment in, a permitted infrastructure entity by a life company.

• (4) On the first day on which both subsections 335(1) and 346(1) of this Act are in force, subsection 554(2.1) of the Insurance Companies Act, as enacted by that subsection 346(1), is renumbered as subsection 554(2.01) and, if necessary, is repositioned accordingly.

• (5) On the first day on which both subsections 335(2) and 346(3) of this Act are in force, subparagraphs 554(3)(d)(ii) and (iii) of the Insurance Companies Act are replaced by the following:

  • (ii) in the case of an entity, other than a permitted infrastructure entity, that is not controlled by the society, the society itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2), (2.01) or (2.1) or 552(2) or paragraph 552(3)(b) or (c), or

  • (iii) in the case of a permitted infrastructure entity, whether or not that entity is controlled by the society, the society itself would be permitted to acquire a substantial investment in the other entity under subsection (2.01); or

• (6) On the first day on which both subsections 335(3) and 346(4) of this Act are in force, subsection 554(5) of the Insurance Companies Act is replaced by the following:

  • Marginal note:Minister’s approval

    (5) Subject to the regulations, a society may not, without the prior written approval of the Minister, acquire control of, or acquire or increase a substantial investment in, a permitted entity other than a permitted infrastructure entity, an entity whose activities are limited to acquiring or holding shares of, or ownership interests in, permitted infrastructure entities, an entity that a society may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1) or an entity whose activities are limited to activities that a property and casualty company is permitted to engage in under paragraph 441(1)(c.1) or (d).

• (7) On the first day on which both subsections 335(1) and 346(5) of this Act are in force, paragraph 554(9)(c) of the Insurance Companies Act is replaced by the following:

  • (c) for the purposes of subsection (2.01), establishing terms and conditions respecting the acquisition of control of, or the acquisition or increase of a substantial investment in, a permitted infrastructure entity by a society.

• (8) On the first day on which both subsections 337(1) and 347(1) of this Act are in force, subsection 971(2.1) of the Insurance Companies Act, as enacted by that subsection 347(1), is renumbered as subsection 971(2.01) and, if necessary, is repositioned accordingly.

• (9) On the first day on which both subsections 337(2) and 347(3) of this Act are in force, subparagraphs 971(3)(d)(ii) and (iii) of the Insurance Companies Act are replaced by the following:

  • (ii) in the case of an entity, other than a permitted infrastructure entity, that is not controlled by the insurance holding company, a company would be permitted to acquire a substantial investment in the other entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 493(4) or 495(1), (2), (2.01) or (2.1),

  • (iii) in the case of a permitted infrastructure entity, whether or not that entity is controlled by the insurance holding company, a company would be permitted to acquire a substantial investment in the other entity under subsection 495(2.01); or

• (10) On the first day on which both subsection 337(1) and section 348 of this Act are in force, paragraph 977(e) of the Insurance Companies Act is replaced by the following:

  • (e) for the purposes of subsection 971(2.01), establishing terms and conditions respecting the acquisition of control of, or the acquisition or increase of a substantial investment in, a permitted infrastructure entity by an insurance holding company.

Coming into Force

Marginal note:Order in council

350 Sections 342 to 348 come into force on a day to be fixed by order of the Governor in Council.

SUBDIVISION CBank Terminology

R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act

351 The Office of the Superintendent of Financial Institutions Act is amended by adding the following after section 37:

1991, c. 46Bank Act

• 352 (1) Subsection 983(2) of the Bank Act is replaced by the following:

  • Marginal note:Unauthorized name

    (2) Subject to the regulations and subsections (4) to (5.1), (6) and (12), every entity, other than a bank, that acquires, adopts or retains a name, a domain name or an identifying mark that includes the word “bank”, “banker” or “banking”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.

• (2) Subsection 983(2.1) of the Act is replaced by the following:

  • Marginal note:Unauthorized use of word “bank”, “banker” or “banking”

    (2.1) Subject to the regulations and subsections (4) to (5.1), (6) and (12), every person, other than a bank, who uses the word “bank”, “banker” or “banking”, without being authorized to do so by this Act or any other Act of Parliament, to indicate or describe a business in Canada or any part of a business in Canada, including any of its products or services or the means by which any of those products or services may be obtained, is guilty of an offence.

  • Marginal note:Unauthorized use of word “bank”, “banker” or “banking”

    (2.11) Subject to the regulations and subsections (4) to (5.1), (6) and (12), every person, other than a bank, who, in respect of their own business, causes or authorizes another person to use the word “bank”, “banker” or “banking”, without being authorized to do so by this Act or any other Act of Parliament, to indicate or describe that business in Canada, or any part of that business in Canada, including any of its products or services or the means by which any of those products or services may be obtained, is guilty of an offence.

• (3) Section 983 of the Act is amended by adding the following after subsection (4.1):

  • Marginal note:Permitted use

    (4.2) Subject to the regulations, no person commits an offence under subsection (2.1) or (2.11) if they meet the requirements set out in subsection (4.3) and they are

    • (a) a body corporate to which the Trust and Loan Companies Act applies;

    • (b) a trust or loan corporation incorporated or formed by or under an Act of the legislature of a province;

    • (c) a central cooperative credit society;

    • (d) a local cooperative credit society;

    • (e) a federation of cooperative credit societies;

    • (f) the corporation known as “ATB Financial” and referred to in section 2 of the ATB Financial Act, chapter A-45.2 of the Revised Statutes of Alberta 2000, or a successor of that corporation; or

    • (g) a prescribed entity.

  • Marginal note:Requirements

    (4.3) For the purposes of subsection (4.2), the requirements are the following:

    • (a) subject to the regulations, the entity discloses

      • (i) the type of entity it is, as described in any of paragraphs (4.2)(a) to (g) or in the regulations,

      • (ii) the jurisdiction under whose laws the entity is primarily regulated,

      • (iii) whether it participates in a deposit insurance system in Canada, and if so, the name of that system, and

      • (iv) any other prescribed information; and

    • (b) the entity complies with any prescribed requirements or conditions.

• (4) Subsection 983(5) of the Act is replaced by the following:

  • Marginal note:Permitted use

    (5) No subsidiary of a bank commits an offence by reason only that it uses the name of the bank of which it is a subsidiary in its corporate name or a name under which it carries on business or by reason only that it uses any identifying mark or domain name of that bank in carrying on its business.

• (5) Subsection 983(5.3) of the French version of the Act is replaced by the following:

  • Marginal note:Utilisation autorisée

    (5.3) Sous réserve des règlements, ne commet pas une infraction l’entité qui appartient au groupe d’une banque du simple fait qu’elle utilise la dénomination de la banque dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou toute marque d’identification de la banque dans l’exercice de ses activités si elle n’utilise pas les termes « banque », « banquier », « coopérative de crédit fédérale » ou « bancaire » dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou dans une de ses marques d’identification.

• (6) Subsections 983(7) and (8) of the French version of the Act are replaced by the following:

  • Marginal note:Utilisation autorisée

    (7) Ne commet pas une infraction la filiale d’une société de portefeuille bancaire du simple fait qu’elle utilise la dénomination de la société de portefeuille bancaire dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou une marque d’identification de la société de portefeuille bancaire dans l’exercice de ses activités pourvu que, si elle n’est pas une banque ou la filiale d’une banque, elle n’utilise pas les termes « banque », « banquier » ou « bancaire » dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou dans une de ses marques d’identification.

  • Marginal note:Utilisation autorisée

    (8) Sous réserve des règlements, ne commet pas une infraction l’entité qui appartient au groupe d’une société de portefeuille bancaire du simple fait qu’elle utilise la dénomination de la société de portefeuille bancaire dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou une marque d’identification de la société de portefeuille bancaire dans l’exercice de ses activités, si elle n’utilise pas les termes « banque », « banquier » ou « bancaire » dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou dans une de ses marques d’identification.

• (7) Paragraph 983(10)(a) of the French version of the Act is replaced by the following:

  • a) elle n’utilise pas les termes « banque », « banquier » ou « bancaire » dans sa dénomination sociale ou dans la dénomination sous laquelle elle exerce ses activités ou dans une de ses marques d’identification;

• (8) Subsection 983(11) of the French version of the Act is replaced by the following:

  • Marginal note:Utilisation autorisée

    (11) Sous réserve des règlements, ne commet pas une infraction la banque étrangère qui exerce les activités visées aux articles 510.1, 522.05, 522.18 ou 522.19 ou l’entité constituée ou formée sous le régime des lois d’un pays étranger qui exerce les activités visées à l’un de ces articles et qui est une entité liée à une banque étrangère du simple fait qu’elle utilise sa dénomination ou une de ses marques d’identification, pourvu qu’elle n’utilise pas les termes « banque », « banquier » ou « bancaire ».

• (9) The portion of subsection 983(13) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:banque, banquier et bancaire

    (13) Pour l’application du présent article, les termes banque, banquier ou bancaire s’entendent en outre :

• (10) Subsection 983(15) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (b.1) any trademark of the entity; and

• (11) Subsection 983(18) of the Act is replaced by the following:

  • Marginal note:Regulations

    (18) The Governor in Council may make regulations for the purposes of subsections (1) to (3), paragraphs (4)(b), (g) and (h) and subsections (4.2), (4.3), (5.3), (8) and (9.1) to (11).