Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3)
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Assented to 2026-03-26
PART 5Various Measures (continued)
DIVISION 11Legislation Related to Financial Institutions (Modernizing Limits on Borrowing, Loans and Investments) (continued)
1991, c. 47Insurance Companies Act
263 Section 473 of the Insurance Companies Act is repealed.
264 Section 476 of the Act is repealed.
265 The definition commercial loan in subsection 490(1) of the Act is repealed.
266 The heading before section 502 and sections 502 to 508 of the Act are repealed.
267 Section 509 of the Act is amended by adding “or” at the end of paragraph (a) and by repealing paragraphs (c) and (d).
268 Section 510 of the Act is amended by adding the following after subsection (1):
Marginal note:Divestment order — portfolios of loans and interests
(1.1) Subject to subsection (1.2), the Superintendent may, by order, direct a company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:
(a) the following loans:
(i) in the case of a life company, the commercial loans held by the company and its subsidiaries, and
(ii) in the case of a property and casualty company or a marine company, the commercial loans and loans to natural persons held by the company and its subsidiaries;
(b) the interests of the company and its subsidiaries in real property; and
(c) the following interests of the company and its subsidiaries:
(i) the participating shares of a body corporate that are beneficially owned by the company and its subsidiaries, other than participating shares of a permitted entity in which the company has a substantial investment, and
(ii) the ownership interests in an unincorporated entity that are beneficially owned by the company and its subsidiaries, other than ownership interests in a permitted entity in which the company has a substantial investment.
Marginal note:Prudential considerations
(1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.
269 Paragraph 512(2)(a) of the Act is replaced by the following:
(a) assets that are debt obligations that are
(i) guaranteed by any financial institution other than the company,
(ii) fully secured by deposits with any financial institution, or
(iii) fully secured by debt obligations that are guaranteed by any financial institution other than the company;
(a.1) assets that are debt obligations issued
(i) by, or by any agency of,
(A) the Government of Canada,
(B) the government of a province,
(C) a municipality, or
(D) the government of a foreign country or any political subdivision of a foreign country, or
(ii) by a prescribed international agency;
(a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);
(a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;
(a.4) assets that are debt obligations of an entity controlled by the company;
270 Section 542.1 of the Act is repealed.
271 The heading before section 561 and sections 561 to 563 of the Act are repealed.
272 The Act is amended by adding the following before section 564:
Regulations
273 Section 564 of the Act is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c).
274 The heading before section 565 and sections 565 and 566 of the Act are repealed.
275 Section 567 of the Act is amended by adding the following after subsection (2):
Marginal note:Divestment order — portfolios of loans and interests
(3) Subject to subsection (4), the Superintendent may, by order, direct a society to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:
(a) the commercial loans and loans to natural persons held by the society and its subsidiaries;
(b) the interests of the society and its subsidiaries in real property; and
(c) the following interests of the society and its subsidiaries:
(i) the participating shares of a body corporate that are beneficially owned by the society and its subsidiaries, other than participating shares of a permitted entity in which the society has a substantial investment, and
(ii) the ownership interests in an unincorporated entity that are beneficially owned by the society and its subsidiaries, other than ownership interests in a permitted entity in which the society has a substantial investment.
Marginal note:Prudential considerations
(4) The Superintendent may make an order under subsection (3) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.
276 Paragraph 569(2)(a) of the Act is replaced by the following:
(a) assets that are debt obligations that are
(i) guaranteed by any financial institution other than the society,
(ii) fully secured by deposits with any financial institution, or
(iii) fully secured by debt obligations that are guaranteed by any financial institution other than the society;
(a.1) assets that are debt obligations issued
(i) by, or by any agency of,
(A) the Government of Canada,
(B) the government of a province,
(C) a municipality, or
(D) the government of a foreign country or any political subdivision of a foreign country, or
(ii) by a prescribed international agency;
(a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);
(a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;
(a.4) assets that are debt obligations of an entity controlled by the society; or
277 Subsection 610(1) of the Act is amended by adding “and” at the end of paragraph (d) and by repealing paragraph (e).
278 The heading before section 613 of the Act is replaced by the following:
Application
279 Section 613 of the Act is repealed.
280 Section 614 of the Act is replaced by the following:
Marginal note:Non-application
614 (1) Sections 612 and 615 do not apply in respect of assets of a foreign company held in relation to a segregated fund maintained under section 593.
Marginal note:Exclusion of liabilities of segregated funds
(2) A reference in section 615 to the assets in Canada or the liabilities in Canada of a foreign company does not include liabilities of the foreign company for the policies and amounts in respect of which a segregated fund is maintained under section 593.
281 The heading before section 616 and sections 616 to 620 of the Act are repealed.
282 The heading before section 978 and sections 978 to 983 of the Act are repealed.
283 Section 984 of the Act is amended by adding “or” at the end of paragraph (a) and by repealing paragraphs (c) and (d).
284 Section 985 of the Act is amended by adding the following after subsection (1):
Marginal note:Divestment order — portfolios of loans and interests
(1.1) Subject to subsection (1.2), the Superintendent may, by order, direct an insurance holding company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:
(a) the commercial loans held by the insurance holding company and its subsidiaries;
(b) the interests of the insurance holding company and its subsidiaries in real property; and
(c) the following interests of the insurance holding company and its subsidiaries:
(i) the participating shares of a body corporate that are beneficially owned by the insurance holding company and its subsidiaries, other than participating shares of a permitted entity in which the insurance holding company has a substantial investment, and
(ii) the ownership interests in an unincorporated entity that are beneficially owned by the insurance holding company and its subsidiaries, other than ownership interests in a permitted entity in which the insurance holding company has a substantial investment.
Marginal note:Prudential considerations
(1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.
285 Paragraph 987(2)(a) of the Act is replaced by the following:
(a) assets that are debt obligations that are
(i) guaranteed by any financial institution other than the insurance holding company,
(ii) fully secured by deposits with any financial institution, or
(iii) fully secured by debt obligations that are guaranteed by any financial institution other than the insurance holding company;
(a.1) assets that are debt obligations issued
(i) by, or by any agency of,
(A) the Government of Canada,
(B) the government of a province,
(C) a municipality, or
(D) the government of a foreign country or any political subdivision of a foreign country, or
(ii) by a prescribed international agency;
(a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);
(a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;
(a.4) assets that are debt obligations of an entity controlled by the insurance holding company; or
Coming into Force
Marginal note:Order in council
286 The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council.
DIVISION 12Legislation Related to Financial Institutions (Electronic Delivery of Governance Documents)
1991, c. 46Bank Act
287 The Bank Act is amended by adding the following after section 14.11:
Marginal note:Schedule V
14.12 The Governor in Council may, by order, amend Schedule V by adding, deleting or amending a reference to a version of National Instrument 51-102 or National Instrument 54-101.
288 Section 992 of the Act is amended by adding the following in alphabetical order:
- NI 51-102
NI 51-102 in respect of a province set out in column 1 of Table 1 of Schedule V, means the version of National Instrument 51-102 referred to in column 2. (Règlement 51-102)
- NI 54-101
NI 54-101 in respect of a province set out in column 1 of Table 1 of Schedule V, means the version of National Instrument 54-101 referred to in column 2. (Règlement 54-101)
289 (1) The portion of subsection 995(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Consent and other requirements
995 (1) Despite anything in this Part, but subject to subsections (3) and (4), a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless
(2) Section 995 of the Act is amended by adding the following after subsection (2):
Marginal note:Notice-and-access — distributing institutions
(3) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders of a distributing bank or of a distributing bank holding company for use in connection with a meeting for which notice referred to in subsection 138(1) or 727(1) is sent if
(a) a notice of availability of documents or other information for use in connection with the meeting is sent in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101;
(b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and
(c) the document or other information is made available as an electronic document in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101.
Marginal note:Notice-and-access — institutions that are not distributing
(4) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders or members of a bank that is not a distributing bank, of a bank holding company that is not a distributing bank holding company or of a federal credit union for use in connection with a meeting for which notice referred to in subsection 138(1) or 727(1) is sent if
(a) a notice of availability of documents or other information for use in connection with the meeting is sent to the shareholders or members that contains only
(i) the time and place of the meeting,
(ii) a statement that the documents or other information for use in connection with the meeting are available as electronic documents on the website of the bank, bank holding company or federal credit union,
(iii) the address of the website of the bank, bank holding company or federal credit union on which the documents or other information are available,
(iv) a statement that no paper copies of any document or other information for use in connection with the meeting will be sent unless they are requested,
(v) instructions on how to request the paper copies,
(vi) a description of the matters to be voted on during the meeting, and
(vii) a description of the voting procedures;
(b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and
(c) the document or other information is made available to shareholders or members as an electronic document on the website of the bank, bank holding company or federal credit union.
Marginal note:Documents available on website
(5) For the purposes of paragraph (4)(c), a document or other information is considered to be available as an electronic document only if
(a) it is available on the website on or before the day on which the notice referred to in paragraph (4)(a) is sent;
(b) it remains available on the website for at least one year; and
(c) it is in an accessible, printable and searchable format.
Marginal note:Requests for paper copies
(6) On the request of a shareholder or member of a bank that is not a distributing bank, of a bank holding company that is not a distributing bank holding company or of a federal credit union, paper copies of the following documents or other information must be sent by prepaid mail addressed to, or delivered personally to, the shareholder or member at their latest address as shown in the records of the bank, bank holding company or federal credit union, or of its transfer agent:
(a) any document or other information made available under subsection (4) before the request is made; or
(b) all documents and other information made available under subsection (4) after the request is made.
Marginal note:Documents already made available
(7) A document or other information referred to in paragraph (6)(a) must be sent or delivered
(a) within three business days after the day on which the request is received, if it is received before the day of the meeting; or
(b) within 10 days after the day on which the request is received, if it is received on or after the day of the meeting.
Marginal note:For greater certainty
(8) For greater certainty, a document or other information that is required under this Act or the regulations to be sent to a specific place and that is made available under paragraph (3)(c) or (4)(c) is not required to be sent to an information system designated by the addressee.
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