Disclosure of Interest (Authorized Foreign Banks) Regulations
SOR/99-272
Registration 1999-06-23
Disclosure of Interest (Authorized Foreign Banks) Regulations
P.C. 1999-1158 1999-06-23
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 560 to 562Footnote a of the Bank ActFootnote b, hereby makes the annexed Disclosure of Interest (Authorized Foreign Banks) Regulations.
Return to footnote aS.C. 1999, c. 28, s. 35(1)
Return to footnote bS.C. 1991, c. 46
Interpretation
1 The definitions in this section apply in these Regulations.
- Act
Act means the Bank Act. (Loi)
- deposit account
deposit account means an interest-bearing deposit account. (compte de dépôt)
Application
2 These regulations apply to authorized foreign banks that are not subject to the restrictions and requirements referred to in subsection 524(2) of the Act.
Disclosure in Respect of Deposit Accounts
3 (1) Subject to subsection (1.1), an authorized foreign bank shall disclose to a person who requests the authorized foreign bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(a) where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or
(b) where no statement of account is provided in respect of the deposit account, by means of
(i) a written statement copies of which are available and displayed in each branch of the authorized foreign bank where such accounts are kept, or
(ii) a general notice that is displayed in each branch of the authorized foreign bank where such accounts are kept.
(1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 564(3) of the Act, an authorized foreign bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include
(a) the annual rate of interest;
(b) the frequency of payment of interest;
(c) the manner, if any, in which the balance in the deposit account affects the rate of interest; and
(d) any other circumstance that affects the rate of interest.
(3) For the purpose of subsection (1.1), the statement is deemed to be provided to a customer
(a) if the customer consents to receiving it by electronic means, on the day recorded by a server of the authorized foreign bank as the time of sending it by electronic means to the customer;
(b) if the customer consents to receiving it by fax, on the day recorded by a fax machine of the authorized foreign bank as the time of sending it to the customer;
(c) if it is sent to the customer by mail, on the fifth day after the postmark date on the statement; and
(d) if it is provided to the customer in any other way, on the day on which the statement is received by the customer.
- SOR/2001-468, s. 1
4 Where there is a change in the rate of interest, or in the manner of calculating the amount of interest, that is applicable to a deposit account, the authorized foreign bank shall disclose the changes by means of
(a) a written statement delivered to the person in whose name the account is maintained;
(b) a written statement copies of which are available and displayed in each branch of the authorized foreign bank where such accounts are kept; or
(c) a general notice that is displayed in each branch of the authorized foreign bank where such accounts are kept.
5 Where an authorized foreign bank renews a fixed term deposit account, the authorized foreign bank shall disclose the rate of interest and the manner of calculating the amount of interest that are applicable to the deposit account in the manner described in subparagraph 3(1)(b)(i) or (ii).
Disclosure in Respect of Advertising
6 For the purposes of section 561 of the Act, in all advertisements in respect of interest-bearing deposits or debt obligations, an authorized foreign bank shall disclose how the amount of interest applicable to each deposit and debt obligation is to be calculated by means of a statement in the advertisement that clearly discloses
(a) in respect of interest-bearing deposits, the manner, if any, in which the balance of a deposit account will affect the rate of interest; and
(b) any other circumstance that will affect the rate of interest.
Coming into Force
7 These Regulations come into force on June 28, 1999.
- Date modified: