303. The Act is amended by adding the following after section 587:
Restricted transactions	587.1 (1) Except in accordance with this section, a foreign company shall not
	(a) transfer all or any portion of its policies in Canada or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada; or
	(b) purchase or reinsure all or any portion of the policies in Canada of any body corporate.
Approval of the Minister	(2) A foreign company may, with the approval of the Minister,
	(a) transfer all or any portion of its policies in Canada to, or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada by, a company, society or foreign company that is authorized to transact the classes of insurance to be transferred or reinsured;
	(b) cause itself to be reinsured, on an indemnity basis, against all or any portion of the risks undertaken by it in respect of its policies in Canada by any body incorporated under the laws of a province that is authorized to transact the classes of insurance to be reinsured; or
	(c) purchase or reinsure all or any portion of the policies in Canada of any body corporate.
Prescribed transactions	(3) The Minister's approval is not required for a transaction described in subsection (2) if it is a prescribed transaction or a transaction in a prescribed class of transactions.
	304. Section 589 of the Act is replaced by the following:
No new foreign composite companies	589. The Superintendent may not make or vary an order approving the insuring in Canada of risks by a foreign company if the foreign company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, accident insurance, personal accident insurance, sickness insurance and loss of employment insurance.
	305. Paragraph 591(2)(d) of the Act is replaced by the following:
	(d) to a foreign company that is a foreign fraternal benefit society or a reciprocal or inter-insurance exchange.
1996, c. 6, par. 167(1)(h)	306. Section 594 of the Act is replaced by the following:
Claims against segregated funds	594. A claim against a segregated fund maintained as required by section 593 under a policy in Canada or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund.
	307. Sections 598 and 599 of the Act are replaced by the following:
Definition of ``cost of borrowing''	598. For the purposes of this section and sections 598.1 to 605, ``cost of borrowing'' means, in respect of a loan or an advance on the security or against the cash surrender value of a policy made by a foreign company,
	(a) the interest or discount applicable to the loan or advance; and
	(b) such charges in connection with the loan or advance as are payable by the borrower to the foreign company, or to any person from whom the foreign company receives any charges directly or indirectly, and as are prescribed to be included in the cost of borrowing.
	For those purposes, however, ``cost of borrowing'' does not include prescribed charges.
Rebate of borrowing costs	598.1 (1) Where a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply, and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the foreign company shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.
Exception	(2) The charges to be rebated do not include the interest or discount applicable to the loan.
Regulations	(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.
Disclosing borrowing costs	599. (1) A foreign company shall not include in its assets in Canada any loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 600, and other prescribed information have, in the prescribed manner and at the prescribed time, been disclosed by the foreign company to the borrower.
Non- application	(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.
	308. (1) Section 601 of the Act is renumbered as subsection 601(1).
	(2) Subparagraph 601(1)(a)(i) of the Act is replaced by the following:
	(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and
	(3) Subsection 601(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by adding the following after paragraph (b):
	(c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;
	(d) particulars of any other rights and obligations of the borrower; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	(4) Section 601 of the Act is amended by adding the following after subsection (1):
Disclosure in credit card applications	(2) A foreign company shall, in accordance with the regulations, at such time and in such manner as may be prescribed, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards in Canada and provide prescribed information to any person applying to it in Canada for a credit, payment or charge card.
Disclosure re credit cards	(3) Where a foreign company issues in Canada or has issued in Canada a credit, payment or charge card to a natural person, the foreign company shall, in addition to disclosing the costs of borrowing in respect of any loan that is obtained through the use of the card and that is repayable in Canada, disclose to the person, in accordance with the regulations,
	(a) any charges or penalties described in paragraph (1)(b);
	(b) particulars of the person's rights and obligations;
	(c) any charges for which the person becomes responsible by accepting or using the card;
	(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing or the loan agreement as may be prescribed; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
Additional disclosure re other loans	(4) Where a foreign company enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 599 apply and the loan is not one in respect of which subsection (1) or (3) applies, the foreign company shall, in addition to disclosing the costs of borrowing, disclose to the person, in accordance with the regulations,
	(a) any charges or penalties described in paragraph (1)(b);
	(b) particulars of the person's rights and obligations;
	(c) any charges for which the person is responsible under the arrangement;
	(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing under the arrangement as may be prescribed; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	309. The Act is amended by adding the following after section 601:
Renewal statement	601.1 If a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply and the loan is secured by a mortgage on real property, the foreign company shall disclose to the borrower at such time and in such manner as may be prescribed, such information as may be prescribed respecting the renewal of the loan.
Disclosure in advertising	601.2 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 601(4), loans, credit cards, payment cards or charge cards, offered to natural persons by a foreign company, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement contains such information as may be required by the regulations, in such form and manner as may be prescribed.
	310. Section 603 of the Act is replaced by the following:
Regulations re borrowing costs	603. The Governor in Council may make regulations
	(a) respecting the manner in which, and the time at which, a foreign company is to disclose to a borrower
	(i) the cost of borrowing,
	(ii) any rebate of the cost of borrowing, and
	(iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 601;
	(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a foreign company to a borrower;
	(c) respecting the manner of calculating the cost of borrowing;
	(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;
	(e) specifying any class of loans that are not to be subject to section 598.1, subsection 599(1) or 601(1) or (4) or section 601.1 or 601.2 or the regulations or any specified provisions of the regulations;
	(f) specifying any class of advances that are not to be subject to section 602 or the regulations or any specified provisions of the regulations;
	(g) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 598.1 to 602 are to be disclosed;
	(h) prohibiting the imposition of any charge or penalty referred to in section 601 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;
	(i) respecting the nature or amount of any charge or penalty referred to in paragraph 601(1)(b), (3)(a) or (4)(a) and the costs of the foreign company that may be included or excluded in the determination of the charge or penalty;
	(j) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 601(1)(a)(ii);
	(k) respecting advertisements made by a foreign company regarding arrangements referred to in subsection 601(4), loans, credit cards, payment cards or charge cards;
	(l) respecting the renewal of loans; and
	(m) respecting such other matters or things as are necessary to carry out the purposes of sections 598.1 to 602.
	311. Paragraph 604(1)(a) of the Act is replaced by the following:
	(a) establish procedures for dealing with complaints made by customers in Canada of the foreign company about
	(i) the application of charges applicable to arrangements referred to in subsection 601(3) or payment, credit or charge cards with the foreign company, or
	(ii) the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy in Canada made by the foreign company;
	312. Subsection 605(1) of the Act is replaced by the following:
Contacting Superin- tendent	605. (1) If a customer of a foreign company has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2) or the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy in Canada, the foreign company shall, in the prescribed manner, provide the customer with prescribed information on how to contact the Office of the Superintendent of Financial Institutions.
	313. Paragraph 606(2)(b) of the Act is replaced by the following:
	(b) that is made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed.
	314. Section 607 of the Act is replaced by the following:
Regulations re customer information	607. The Governor in Council may make regulations
	(a) requiring a foreign company to establish procedures regarding the collection, retention, use and disclosure of any information about its customers in Canada or any class of customers in Canada;
	(b) requiring a foreign company to establish procedures for dealing with complaints made by a customer in Canada about the collection, retention, use or disclosure of information about the customer;
	(c) respecting the disclosure by a foreign company of information relating to the procedures referred to in paragraphs (a) and (b);
	(d) requiring a foreign company to designate the officers and employees of the company who are responsible for
	(i) implementing the procedures referred to in paragraph (b), and
	(ii) receiving and dealing with complaints made by a customer, in Canada, of the foreign company about the collection, retention, use or disclosure of information about the customer;
	(e) requiring a foreign company to report information relating to
	(i) complaints made by its customers in Canada about the collection, retention, use or disclosure of information, and
	(ii) its actions taken to deal with the complaints; and
	(f) defining ``information'', ``collection'' and ``retention'' for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.
	315. Subsection 612(2) of the Act is replaced by the following:
Exception	(2) Notwithstanding paragraphs (1)(a) and (c), a foreign company may vest in trust a substantial investment in the shares of a real property corporation, as defined in subsection 490(1).
	316. Paragraph 622(a) of the Act is replaced by the following: