Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 4Various Measures (continued)
DIVISION 3Financial Sector (continued)
SUBDIVISION BAmendments related to Canada Deposit Insurance Corporation Act
R.S., c. C-3Canada Deposit Insurance Corporation Act
157 Paragraphs 10(1)(d) and (e) of the Canada Deposit Insurance Corporation Act are replaced by the following:
(d) assume the costs of a winding-up of a member institution when the Corporation is appointed to act as a liquidator in the winding-up, or assume the costs of the receiver when the Corporation is appointed to act as such;
(e) guarantee the payment of the fees of, and the costs incurred by any person as, the liquidator or receiver of a member institution when that person is appointed as such;
158 The portion of subsection 10.1(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Total indebtedness
(3) The total principal indebtedness outstanding at any time in respect of borrowings by the Corporation under subsections (1) and (2), excluding the borrowings under paragraph 60.2(2)(c) of the Financial Administration Act, shall not exceed
159 Section 12.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Deemed withdrawal from pre-existing deposit
(5) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.
160 (1) Subsection 13(1) of the Act is replaced by the following:
Marginal note:Deposits with amalgamating institutions
13 (1) When a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution, in this section referred to as the “amalgamated institution”, a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawals from the deposit, shall, for the purposes of deposit insurance with the Corporation, be deemed to be and continue to be separate from any deposit of that person on that day with the other amalgamating institution or institutions that become part of the amalgamated institution for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.
(2) Section 13 of the Act is amended by adding the following after subsection (4):
Marginal note:Deemed withdrawal from deposit
(5) During the period referred to in subsection (1), any withdrawal by a person — up to the total amount, on the day on which the amalgamated institution is formed, of that person’s deposits with the two or more member institutions that amalgamate — shall, for the purposes of deposit insurance with the Corporation, be deemed to be withdrawn from those deposits.
161 Section 14 of the Act is amended by adding the following after subsection (4.1):
Marginal note:No set-off or compensation
(4.2) Despite section 73 of the Winding-up and Restructuring Act, if the Corporation makes a payment under this section in respect of any deposit with a member institution, the law of set-off or compensation does not apply to a claim by the Corporation on the estate of the member institution in respect of that payment.
162 Section 20 of the Act is replaced by the following:
Marginal note:Funds
20 The Corporation shall maintain funds for the purpose of carrying out its objects.
163 Subsection 21(5) of the Act is replaced by the following:
Marginal note:Calculation of deposits
(5) For the purposes of this section, a member institution may use any method approved by the Corporation for that premium year to determine or estimate the aggregate amount of its deposits that are considered to be insured by the Corporation.
164 Subsection 26(1) of the Act is repealed.
2012, c. 5Financial System Review Act
Amendments to the Act
165 Sections 191 and 192 of the Financial System Review Act are repealed.
Coordinating Amendments
Marginal note:2012, c. 5
166 (1) In this section, other Act means the Financial System Review Act.
(2) If section 191 of the other Act comes into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) section 192 of the other Act is repealed;
(c) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Assessment and collection of premiums
21 (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of
(a) the annual premium for that member institution determined under the by-laws, and
(b) the maximum annual premium.
(d) paragraph 21(2)(d) of the Act is repealed; and
(e) subsection 21(4) of the Act is replaced by the following:
Marginal note:Maximum annual premium
(4) In this section, maximum annual premium means, in respect of a member institution, the greater of
(a) $5,000, and
(b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
(3) If section 191 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 191.
(4) If section 192 of the other Act comes into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) section 191 of the other Act is repealed; and
(c) subsection 23(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Calculation of first premium
23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:
(a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and
(b) the greater of
(i) $5,000, and
(ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.
(5) If section 192 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 192.
(6) If sections 191 and 192 of the other Act come into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Assessment and collection of premiums
21 (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of
(a) the annual premium for that member institution determined under the by-laws, and
(b) the maximum annual premium.
(c) paragraph 21(2)(d) of the Act is repealed;
(d) subsection 21(4) of the Act is replaced by the following:
Marginal note:Maximum annual premium
(4) In this section, maximum annual premium means, in respect of a member institution, the greater of
(a) $5,000, and
(b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
(e) subsection 23(1) of the Act is replaced by the following:
Marginal note:Calculation of first premium
23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:
(a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and
(b) the greater of
(i) $5,000, and
(ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.
(7) If sections 191 and 192 of the other Act come into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before those sections 191 and 192.
SUBDIVISION CPrivileged information
R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act
167 Section 37 of the Office of the Superintendent of Financial Institutions Act is amended by adding the following after subsection (2):
Marginal note:No use of privileged information
(3) The Superintendent shall not use privileged information as evidence in a proceeding in respect of a violation if the privileged information was disclosed to the Superintendent by
(a) a financial institution, bank holding company or insurance holding company; or
(b) a person who controls, or an entity that is affiliated with, an entity referred to in paragraph (a).
Marginal note:Definition of privileged information
(4) In subsection (3), privileged information means information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege.
1991, c. 45Trust and Loan Companies Act
168 The Trust and Loan Companies Act is amended by adding the following after section 504:
Marginal note:No waiver
504.01 (1) For greater certainty, the disclosure by a company — or by a person who controls a company or by an entity that is affiliated with a company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
Marginal note:No disclosure
(2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
(a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
(b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
1991, c. 46Bank Act
169 The Act is amended by adding the following after section 608:
Marginal note:No waiver
608.1 (1) For greater certainty, the disclosure by an authorized foreign bank — or by a person who controls an authorized foreign bank or by an entity that is affiliated with an authorized foreign bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
Marginal note:No disclosure
(2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
(a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
(b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
170 The Act is amended by adding the following after section 638:
Marginal note:No waiver
638.1 (1) For greater certainty, the disclosure by a bank — or by a person who controls a bank or by an entity that is affiliated with a bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
Marginal note:No disclosure
(2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
(a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
(b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
171 The Act is amended by adding the following after section 956.1:
Marginal note:No waiver
956.2 (1) For greater certainty, the disclosure by a bank holding company — or by a person who controls a bank holding company or by an entity that is affiliated with a bank holding company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
Marginal note:No disclosure
(2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
(a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
(b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
1991, c. 47Insurance Companies Act
172 The Insurance Companies Act is amended by adding the following after section 672.2:
Marginal note:No waiver
672.3 (1) For greater certainty, the disclosure by a company, society, foreign company or provincial company — or by a person who controls one or by an entity that is affiliated with one — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
Marginal note:No disclosure
(2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
(a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
(b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
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