Disqualifi- cation of auditor
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586. (1) An auditor that ceases to be
qualified under subsection 585(2) shall resign
without delay after any member of the firm of
accountants becomes aware that the firm has
ceased to be qualified.
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Disqualifi- cation order
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(2) Any interested person may apply to a
court for an order declaring that an authorized
foreign bank's auditor has ceased to be
qualified under subsection 585(2) and
declaring the office of auditor to be vacant.
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Revocation of
appointment
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587. (1) An authorized foreign bank may at
any time revoke the appointment of its auditor.
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Revocation by
Superinten- dent
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(2) The Superintendent may at any time
revoke the appointment of an auditor made
under subsection 585(1) or 589(1) by notice in
writing signed by the Superintendent and sent
by registered mail to the auditor and to the
principal officer of the authorized foreign
bank addressed to the usual place of business
of the auditor and to the principal office of the
authorized foreign bank, respectively.
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Ceasing to
hold office
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588. (1) An auditor ceases to hold office
when
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Effective date
of resignation
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(2) The resignation of an auditor becomes
effective at the time a written resignation is
sent to the authorized foreign bank or at the
time specified in the resignation, whichever is
later.
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Filling
vacancy
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589. (1) Where a vacancy occurs in the
office of auditor of an authorized foreign bank
under any of sections 585 to 588, the
authorized foreign bank shall without delay
fill the vacancy and, where it fails to do so, the
Superintendent may fill the vacancy.
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Designation
of member of
firm
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(2) Where the Superintendent has
appointed a firm of accountants to fill a
vacancy, the Superintendent shall designate
the member of the firm who is to conduct the
audit on behalf of the firm.
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Statement of
auditor
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590. An auditor of an authorized foreign
bank who
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shall submit to the principal officer of the
authorized foreign bank and the
Superintendent a written statement giving the
reasons for the resignation or the reasons why
the auditor opposes any proposed action.
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Duty of
replacement
auditor
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591. (1) Where an auditor of an authorized
foreign bank has resigned or the appointment
of an auditor has been revoked, no firm of
accountants shall accept an appointment or
consent to be appointed as auditor of the
authorized foreign bank until the firm has
requested and received from the other auditor
a written statement of the circumstances and
reasons why the other auditor resigned or why,
in the other auditor's opinion, the other
auditor's appointment was revoked.
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Exception
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(2) Notwithstanding subsection (1), a firm
of accountants may accept an appointment or
consent to be appointed as auditor of an
authorized foreign bank if, within fifteen days
after a request under that subsection is made,
no reply from the other auditor is received.
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Effect of
non-complian
ce
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(3) Unless subsection (2) applies, an
appointment as auditor of an authorized
foreign bank is void if subsection (1) has not
been complied with.
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Examinations and Reports
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Examination
of annual
return
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592. (1) The auditor of an authorized
foreign bank shall make any examination that
the auditor considers necessary to enable the
auditor to report on the annual return.
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Auditing
standards
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(2) The auditor's examination shall, except
as otherwise specified by the Superintendent,
be conducted in accordance with the auditing
standards referred to in subsection 323(2).
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Filing
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(3) The auditor's report shall be filed with
the Superintendent within five months after
the end of the financial year of the authorized
foreign bank.
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Report to
Superinten- dent and extended examination
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(4) The Superintendent may, in writing,
require that an authorized foreign bank's
auditor report to the Superintendent on the
extent of the auditor's procedures in the
examination of the authorized foreign bank's
annual return and may, in writing, require that
the auditor enlarge or extend the scope of that
examination or direct that any other particular
procedure be performed in any particular case,
and the auditor shall comply with any
requirement of the Superintendent and report
to the Superintendent on it.
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Special
examination
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(5) The Superintendent may, in writing,
require that the auditor of the authorized
foreign bank make a particular examination
relating to the adequacy of the procedures
adopted by the authorized foreign bank in
respect of its business in Canada for the safety
of its depositors and creditors, or any other
examination that, in the Superintendent's
opinion, the public interest may require, and
report to the Superintendent on it.
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Special audit
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(6) The Superintendent may direct that a
special audit or report be made if, in the
opinion of the Superintendent, it is so required
and may appoint for that purpose a firm of
accountants qualified under subsection 585(2)
to be the auditor.
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Expenses
payable by
authorized
foreign bank
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(7) The expenses entailed by any
examination, audit or report referred to in any
of subsections (4) to (6) are payable by the
authorized foreign bank on being approved in
writing by the Superintendent.
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Right to
information
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593. (1) On the request of the auditor of an
authorized foreign bank, the present or former
principal officers, directors, officers,
employees or representatives of the
authorized foreign bank shall, to the extent
that they are reasonably able to do so,
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that are, in the opinion of the auditor,
necessary to enable the auditor to perform the
duties of auditor of the authorized foreign
bank.
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No civil
liability
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(2) A person who in good faith makes an
oral or written communication under
subsection (1) shall not be liable in any civil
action arising from having made the
communication.
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Auditor's
report to
principal
officer
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594. (1) The auditor of an authorized
foreign bank shall make a report to the
principal officer of the authorized foreign
bank in writing on the annual return not later
than sixty days after the end of the financial
year in respect of which the annual return is
prepared.
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Auditor's
opinion
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(2) In the report, the auditor shall state
whether, in the auditor's opinion, the annual
return presents fairly, in accordance with the
accounting principles referred to in subsection
308(4), the financial position of the business
in Canada of the authorized foreign bank as at
the end of the financial year to which it relates
and the results of the operations and changes
in the financial position of the business in
Canada of the authorized foreign bank for that
financial year.
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Auditor's
remarks
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(3) In the report, the auditor shall include
any remarks that the auditor considers
necessary when
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Additional
reports to
principal
officer
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595. (1) It is the duty of the auditor of an
authorized foreign bank to report in writing to
the principal officer of the authorized foreign
bank any transactions or conditions in respect
of the business in Canada of the authorized
foreign bank that have come to the auditor's
attention affecting the well-being of the
authorized foreign bank that in the auditor's
opinion are not satisfactory and require
rectification and, without restricting the
generality of the foregoing, the auditor shall,
as occasion requires, make a report to the
principal officer in respect of transactions in
respect of the business in Canada of the
authorized foreign bank that have come to the
auditor's attention and that in the auditor's
opinion have not been within the powers of the
authorized foreign bank.
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Transmission
of report
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(2) The auditor shall, at the time of
transmitting the report to the principal officer,
provide the Superintendent with a copy of it.
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Qualified
privilege for
statements
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596. Any oral or written statement or report
made under this Act by the auditor or a former
auditor of an authorized foreign bank has
qualified privilege.
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Records |
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Records
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597. (1) An authorized foreign bank shall
prepare and maintain
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Place of
records
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(2) The records described in subsection (1)
shall be kept at the principal office of the
authorized foreign bank or at any other place
in Canada that its principal officer thinks fit.
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Notice of
place of
records
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(3) Where any of the records described in
subsection (1) are not kept at the principal
office of an authorized foreign bank, the
authorized foreign bank shall notify the
Superintendent of the place where they are
kept.
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Form of
records
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(4) Records required by this Act to be
prepared and maintained by an authorized
foreign bank
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Conversion of
records
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(5) Records kept in one form may be
converted to any other form and,
notwithstanding section 246, an authorized
foreign bank may destroy the record at any
time after it has been converted.
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Access to
records
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(6) Creditors in respect of the business in
Canada of an authorized foreign bank and
their personal representatives may examine a
record referred to in any of paragraphs (1)(a),
(d) or (e) during the usual business hours of the
authorized foreign bank, and may take
extracts from it, free of charge, or have copies
made of it on payment of a reasonable fee.
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Application of
sections 244
to 247
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598. Section 244, subsections 245(1), (2)
and (4) to (7) and sections 246 and 247 apply,
with any modifications that the circumstances
require, to an authorized foreign bank as if
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Termination of Business in Canada |
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Release of
assets in
Canada
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599. (1) An authorized foreign bank that
discontinues its business in Canada may apply
in writing to the Superintendent for the release
of its assets maintained on deposit under
paragraph 534(3)(a) or subsection 582(1).
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Conditions of
release
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(2) Except as otherwise provided in this
Act, the assets may not be released unless
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Superinten- dent may release assets
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(3) After the day specified in the notice, the
Superintendent may authorize the release of
the assets if the Superintendent is satisfied that
the authorized foreign bank has discharged,
provided for the discharge of, or transferred,
all of its liabilities in respect of its business in
Canada.
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Release of
assets to
liquidator
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(4) Notwithstanding subsections (1) to (3),
the assets on deposit of an authorized foreign
bank that is in liquidation may, on the order of
any court having jurisdiction under the
Winding-up and Restructuring Act, be
released to the liquidator.
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Order deemed
to be revoked
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(5) An order made under subsection 524(1),
528(1) or 534(1) in respect of an authorized
foreign bank is deemed to be revoked when
the Superintendent authorizes the release of
the assets of the authorized foreign bank under
subsection (3).
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Supervision |
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Returns
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Required
information
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600. An authorized foreign bank shall
provide the Superintendent with any
information, at the times and in the form, that
the Superintendent may require.
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Annual return
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601. (1) An authorized foreign bank, in
respect of its business in Canada, shall prepare
annually a return of the condition and affairs
of the authorized foreign bank as at the end of
each financial year, showing its assets and
liabilities and its income and expenditures
during that financial year together with any
other information that the Superintendent
considers appropriate.
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Form and
filing of
annual return
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(2) The annual return shall be in the form
that the Superintendent determines and shall
be filed with the Superintendent on or before
sixty days after the end of the financial year in
respect of which it is prepared.
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Accounting
principles
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(3) The annual return shall be prepared in
accordance with the accounting principles
referred to in subsection 308(4).
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Report of
unclaimed
deposits
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602. (1) An authorized foreign bank shall,
within sixty days after the end of each
calendar year, provide the Superintendent
with a return, in the form that the
Superintendent may determine, as of the end
of that calendar year, in respect of all deposits
made with it in Canada in Canadian currency
for which no transaction has taken place and
no statement of account has been requested or
acknowledged by the depositors during a
period of nine years or more.
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Period
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(2) The period referred to in subsection (1)
shall be calculated
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Content of
return
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(3) The return shall show, in so far as is
known to the authorized foreign bank,
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Amounts
under one
hundred
dollars
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(4) Where the total outstanding amount of
deposits in the name of a depositor is less than
one hundred dollars, the authorized foreign
bank may omit from the return the particulars
in respect of the deposits required by
subsection (3).
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Return on
unclaimed
bills of
exchange
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603. (1) An authorized foreign bank shall,
within sixty days after the end of each
calendar year, provide the Superintendent
with a return, in the form that the
Superintendent may determine, as of the end
of that calendar year, in respect of all
negotiable instruments (including instruments
drawn by one branch of the authorized foreign
bank on another of its branches but not
including instruments issued in payment of a
dividend on the capital of the authorized
foreign bank) payable in Canada in Canadian
currency that have been issued, certified or
accepted by the authorized foreign bank at
branches of the authorized foreign bank and
for which no payment has been made for a
period of nine years or more calculated from
the date of issue, certification, acceptance or
maturity, whichever is the latest, until the date
of the return.
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