Canada Deposit Insurance Corporation Differential Premiums By-law (SOR/99-120)

• 6 (1) The Corporation shall review the classification of every member institution that has been classified in premium category 4 in accordance with section 12 if the institution submits to the Corporation on or before April 30 of the year following the filing year

  • (a) if the institution is an institution described in paragraph 12(1)(a), audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the information set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e) as previously submitted; and

  • (b) if the institution is an institution described in paragraph 12(1)(b), the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

• (2) The Corporation shall reclassify in accordance with sections 7, 8 or 8.1, as the case may be, a member institution referred to in subsection (1) if, based on the documents referred to in that subsection, such a reclassification is warranted.

New Member Institutions

• 7 (1) A member institution shall be classified, subject to sections 8.1 and 12, in premium category 1, if

  • (a) the member institution has been operating as a member institution for less than two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; and

  • (b) not later than April 30 of the filing year, the member institution provides the Corporation with a declaration confirming that the member institution meets the condition referred to in paragraph (a).

• (2) Subsection (1) does not apply to a member institution that

  • (a) is a subsidiary of another member institution; or

  • (b) has a subsidiary that is a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year.

• (2.1) A member institution that is a bridge institution shall be classified in premium category 1.

• (3) For the purpose of this section, if a member institution is formed by an amalgamation involving one or more member institutions, the amalgamated member institution shall be considered to have started operating on the same day as the amalgamating member institution that has been operating for the longest period of time.

• (4) [Repealed, SOR/2019-43, s. 5]

Evaluation

8 A member institution to which sections 7 and 8.01 do not apply shall be classified, subject to sections 8.1 and 12, in the premium category set out in column 1 of Schedule 1 that corresponds to the total score for the institution determined in accordance with section 9, 10 or 11, as the case may be, and set out in column 2.

8.01 A member institution that is a subsidiary of another member institution shall be classified, subject to sections 8.1 and 12,

• (a) if it is a subsidiary of a member institution classified under subsection 7(1),

  • (i) in the same premium category in which the member institution of which it is a subsidiary would have been classified if sections 8.1 and 12 did not apply, or

  • (ii) if the subsidiary has been operating as a member institution for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year, in the premium category set out in column 1 of Schedule 1 that corresponds to the total score for the subsidiary determined in accordance with section 9 or 11, as the case may be, and set out in column 2; or

• (b) in any other case, in the same premium category in which the member institution of which it is a subsidiary would have been classified if sections 8.1 and 12 did not apply.

• 8.1 (1) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of the preceding premium year shall

  • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 2;

  • (b) if it would otherwise be classified in premium category 2 for the premium year in question, be classified in premium category 3; and

  • (c) if it would otherwise be classified in premium category 3 or 4 for the premium year in question, be classified in premium category 4.

• (2) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of each of the two preceding premium years shall

  • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 3; and

  • (b) if it would otherwise be classified in premium category 2, 3 or 4 for the premium year in question, be classified in premium category 4.

• (3) A member institution, other than one classified in accordance with section 7 or subparagraph 8.01(a)(i), that was not in all material respects compliant with the Data Requirements By-law as of April 30 of each of the three preceding premium years shall be classified in premium category 4.

• (4) A member institution that would otherwise be classified in accordance with section 7 or subparagraph 8.01(a)(i), that has been a member institution for at least 18 months and that is not in all material respects compliant with the Data Requirements By-law shall

  • (a) if it would otherwise be classified in premium category 1 for the premium year in question, be classified in premium category 2;

  • (b) if it would otherwise be classified in premium category 2 for the premium year in question, be classified in premium category 3; and

  • (c) if it would otherwise be classified in premium category 3 or 4 for the premium year in question, be classified in premium category 4.

8.2 [Repealed, SOR/2017-22, s. 2]

9 In order to determine the total score of a member institution, other than a member institution referred to in section 10 or subsection 11(1), the Corporation shall add together the institution’s scores for quantitative factors assigned under sections 20 to 27 and qualitative factors and criteria assigned under sections 28 and 30.

10 Subject to subsection 11(4), if a member institution that started operating as a member institution after April 30 of the year preceding the filing year would be classified in premium category 1 in accordance with section 7 if it did not have any subsidiaries of the type described in paragraph 7(2)(b), the Corporation shall assign to that institution the highest of the total scores assigned to each of its subsidiaries that

• (a) on the day preceding the day that the institution started to operate as a member institution was not a subsidiary of another member institution; and

• (b) is not a subsidiary of another member institution.

• 11 (1) In order to determine the total score of a member institution formed by an amalgamation involving one or more member institutions that occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year, the Corporation shall add together the score assigned to the amalgamated member institution in respect of quantitative factors under subsection (2) and the score assigned to that institution in respect of qualitative factors and criteria under subsection (3).

• (2) The following score shall be assigned to an amalgamated member institution referred to in subsection (1) in respect of quantitative factors:

  • (a) where the amalgamated member institution has a fiscal year ending in the year preceding the filing year, the sum of the scores assigned to that institution under sections 20 to 27; and

  • (b) where the amalgamated member institution does not have a fiscal year ending in the year preceding the filing year,

    • (i) if only one of the amalgamating institutions is a member institution, the sum of the scores assigned to that member institution under sections 20 to 27, and

    • (ii) if two or more of the amalgamating institutions are member institutions, the highest of the sums of the scores assigned to each of those amalgamating member institutions under sections 20 to 27.

• (3) The score assigned to an amalgamated member institution referred to in subsection (1) in respect of qualitative factors and criteria shall consist of the sum of

  • (a) the score assigned to it under section 28 or, if no score can be assigned to it under that section, the score that would have been assigned under section 28 to the amalgamating member institution whose score in respect of quantitative factors was used to determine the score of the amalgamated member institution in respect of those factors for the purpose of subsection (2), if that section applied to that amalgamating member institution, and

  • (b) [Repealed, SOR/2006-47, s. 3]

  • (c) the score assigned to the amalgamated member institution under section 30.

• (4) Where section 10 and this section both apply in respect of a member institution, this section shall prevail.

• 12 (1) A member institution shall be classified in premium category 4 if it

  • (a) has submitted a Reporting Form in accordance with paragraph 15(4)(a) or 16(2)(a), as the case may be, but has not, before July 1 of the filing year, submitted audited financial statements and a revised Reporting Form or a declaration that the audited financial statements confirm the information set out in the Reporting Form and no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs 15(1)(c) and (e), as previously submitted; or

  • (b) has not, by April 30 of the filing year, submitted the declaration referred to in paragraph 7(1)(b) or the documents required by paragraphs 15(1)(a) to (c) and (e) or section 16.

• (2) [Repealed, SOR/2019-43, s. 9]

• (3) Subsection (1) does not apply to a member institution referred to in subsection 7(2.1).

13 [Repealed, SOR/2002-126, s. 7]

Notification

• 14 (1) The Corporation shall, not later than July 15 of each premium year, notify every member institution of the premium category in which it has been classified under this By-law for that premium year.

• (2) If the Corporation reviews the classification of a member institution based on information in respect of the institution that has come to its attention, including new or supplementary information submitted by the institution, and, as a result of that review, classifies the institution in a different premium category, the Corporation shall as soon as feasible notify the institution of that change.

• (3) [Repealed, SOR/2015-75, s. 6]

Filing of Quantitative Information

• 15 (1) Subject to section 17, every member institution shall submit to the Corporation, not later than April 30 of every year,

  • (a) the Reporting Form, completed in accordance with the instructions set out in the Form;

  • (b) a list of its subsidiaries that are member institutions;

  • (c) the Basel III Capital Adequacy Reporting – Credit, Market and Operational Risk return, set out on the website of the Office of the Superintendent of Financial Institutions, completed in accordance with the guidelines for member institutions, as of the end of each of its two preceding fiscal years, that is, as of the end of the fiscal year ending in the year preceding the filing year and the end of the fiscal year ending in the second year preceding the filing year, unless the return has been previously submitted to the Corporation;

  • (d) [Repealed, SOR/2015-75, s. 7]

  • (e) the following documents set out in the Reporting Manual, namely,

    • (i) the Consolidated Statement of Comprehensive Income, Retained Earnings and AOCI, completed in accordance with that Manual, for its preceding fiscal year,

    • (ii) the Return of Allowances for Expected Credit Losses, completed in accordance with that Manual as of the end of its preceding fiscal year,

    • (iii) the Consolidated Monthly Balance Sheet, completed in accordance with that Manual as of the end of its preceding fiscal year,

    • (iv) Section III of the Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year, and

    • (v) the Non-Mortgage Loans Report, completed in accordance with that Manual as of the end of its preceding fiscal year, and

    • (vi) [Repealed, SOR/2018-8, s. 2]

  • (f) the audited financial statements on which the information provided in the Reporting Form and the returns and documents referred to in paragraphs (c) and (e) are based, unless those financial statements have been submitted to the Corporation under the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law.

• (1.1) Every member institution that is a domestic systemically important bank shall submit to the Corporation, not later than April 30 of every year, the Pledging and REPOS Report, completed in accordance with the Reporting Manual as of the end of its preceding fiscal year.

• (2) The information provided by a member institution in the Reporting Form and in the returns and documents referred to in paragraphs (1)(c) and (e) must

  • (a) be based on audited financial statements prepared as of the end of the applicable fiscal year;

  • (b) be consistent with the financial statements referred to in paragraph (a); and

  • (c) be based on consolidated financial information as of the end of the applicable fiscal year.

• (3) Unless otherwise provided in this By-law, financial information that is provided under this By-law shall be prepared in accordance with the International Financial Reporting Standards established by the International Accounting Standards Board, the primary source of which is, in Canada, the CPA Canada Handbook – Accounting.

• (4) If the audited financial statements referred to in paragraph (1)(f) have not been issued by April 30 of the filing year, the member institution shall

  • (a) complete the Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) based on its unaudited financial statements and submit them to the Corporation within the time required by subsection (1); and

  • (b) not later than July first of the filing year, submit to the Corporation its audited financial statements and

    • (i) provide the Corporation with a declaration that the audited financial statements confirm the information that was previously provided and that no modifications are required to be made to the Reporting Form or to the returns and documents referred to in paragraphs (1)(c) and (e) as previously submitted, or

    • (ii) submit a revised Reporting Form and the returns and documents referred to in paragraphs (1)(c) and (e) in revised form if they have been revised to conform with the audited financial statements.