Bank Act

Marginal note:Restriction on tied selling

• 576.1 (1) An authorized foreign bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the authorized foreign bank and any of its affiliates, as a condition for obtaining another product or service from the authorized foreign bank.

• Marginal note:Favourable authorized foreign bank product or service tied to other sale

  (2) For greater certainty, an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the authorized foreign bank would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

• Marginal note:Favourable other sale tied to authorized foreign bank product or service

  (3) For greater certainty, an affiliate of an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the authorized foreign bank.

• Marginal note:Approval

  (4) An authorized foreign bank may require that a product or service obtained by a borrower from a particular person as security for a loan from the authorized foreign bank meet with the authorized foreign bank’s approval. The approval shall not be unreasonably withheld.

• Marginal note:Disclosure

  (4.1) An authorized foreign bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.

• Marginal note:Regulations

  (4.2) The Governor in Council may make regulations for the purposes of subsection (4.1) defining point of service and prescribing points of service.

• Marginal note:Regulations

  (5) The Governor in Council may make regulations

  • (a) specifying types of conduct or transactions that shall be considered undue pressure or coercion for the purpose of subsection (1); and

  • (b) specifying types of conduct or transactions that shall be considered not to be undue pressure or coercion for the purpose of subsection (1).