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| Foreign
insurance
company
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515. Paragraphs 508(1)(a) to (c) and
subsection 508(2) do not apply to a foreign
insurance company in relation to its insurance
business in Canada.
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| Business in
Canada of
authorized
foreign bank
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515.1 Paragraphs 508(1)(a) to (c) and
subsection 508(2) do not apply in respect of
the business in Canada of an authorized
foreign bank.
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| Real property
holding and
management
|
515.2 Paragraphs 508(1)(a) and (b) do not
apply in respect of holding, managing and
other dealing with real property in Canada by
a foreign bank or an entity associated with a
foreign bank.
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| Control or
substantial
investment
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516. (1) Notwithstanding paragraph
508(1)(d) and section 518, a foreign bank, or
an entity associated with a foreign bank, other
than one that holds control of, or a substantial
investment in, a Canadian entity under
subsection 513(1) or that carries on businesses
or activities under subsection 513(2), may
acquire or hold control of, or a substantial
investment in,
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(a) a Canadian entity referred to in any of
paragraphs 468(1)(a) to (f); and
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(b) any other Canadian entity, by way of an
acquisition of control of a Canadian entity
referred to in paragraph (a) that has control
of, or a substantial investment in, the
Canadian entity.
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| Substantial
investment
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(2) Notwithstanding subsection (1) and
paragraph 508(1)(d), a foreign bank, or an
entity associated with a foreign bank, that
holds control of, or a substantial investment
in, a Canadian entity under subsection 513(1)
or that carries on businesses or activities under
subsection 513(2) may acquire or hold a
substantial investment in a Canadian entity
referred to in any of paragraphs 468(1)(a) to
(f) so long as the foreign bank and any entity
associated with the foreign bank meet the
conditions set out in subsections 513(4) and
(5).
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| Activities in
Canada of
certain entities
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(3) Paragraphs 508(1)(a) to (c) do not apply
to a Canadian entity referred to in paragraph
(1)(a) or (b) or subsection (2).
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| Guarantee and
acceptance of
securities and
bills
|
(4) Subsection 508(2) does not apply in
respect of the guarantee or acceptance by a
foreign bank of securities or bills of exchange
or depository bills that are issued by
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(a) a bank that is a subsidiary of the foreign
bank or of an entity associated with the
foreign bank;
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(b) a Canadian entity in which a bank that
is a subsidiary of the foreign bank, or of an
entity associated with the foreign bank,
holds a substantial investment; or
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(c) a Canadian entity controlled by a bank
that is a subsidiary of the foreign bank or of
an entity associated with the foreign bank.
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| Power of
Minister
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517. (1) The Minister may, by order,
designate a foreign bank
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(a) if the Minister is of the opinion, after
consulting with the Superintendent,
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(i) that the foreign bank provides services
outside Canada, a significant portion of
which are services that would be
permitted by this Act if they were
provided by a bank in Canada, and that
the foreign bank is regulated as a bank in
the jurisdiction under whose laws it was
incorporated or in any jurisdiction in
which it carries on business, or
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(ii) that the business of taking deposits
outside Canada constitutes a significant
portion of the foreign bank's business and
that the foreign bank is, with respect to its
provision of financial services, regulated
in the jurisdiction under whose laws it
was incorporated or in any jurisdiction in
which it carries on business;
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(b) if the Minister is of the opinion that the
foreign bank is an entity associated with a
foreign bank to which paragraph (a)
applies; or
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(c) after taking into consideration any other
aspect of its business or regulation or that of
any entity associated with the foreign bank.
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| Deeming
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(2) A foreign bank that was designated
under subsection 521(1.06) before the repeal
of that subsection and whose designation has
not been revoked is deemed to have been
designated under subsection (1).
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| Effect of
order
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(3) No foreign bank that has been
designated under subsection (1), and no other
foreign bank that is an entity associated with
the foreign bank, may be the subject of an
order under subsection 507.1(1).
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| Foreign
securities
dealers and
cooperatives
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517.1 (1) Notwithstanding paragraphs
508(1)(a) and (b), a foreign bank designated
under section 517 or an entity associated with
such a foreign bank may, subject to paragraph
518.2(1)(f),
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(a) engage in a business or activity in
Canada that a Canadian entity referred to in
paragraph 468(1)(i) may engage in, so long
as
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(i) that business or activity is carried on
in accordance with provincial laws
relating to securities dealing, and
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(ii) the foreign bank or entity associated
with the foreign bank is a foreign
securities dealer; or
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(b) engage in a business or activity in
Canada that a Canadian entity referred to in
paragraph 468(1)(h) may engage in, so long
as
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(i) that business or activity is carried on
in accordance with provincial laws
relating to cooperative credit societies,
and
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(ii) the foreign bank or entity associated
with the foreign bank is a foreign
cooperative credit society.
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| Automated
services
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(2) Notwithstanding paragraph 508(1)(c), a
foreign bank, or an entity associated with a
foreign bank, that has received the approval of
the Minister under paragraph 518.2(1)(f) may
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(a) if it is a foreign securities dealer that has
also received the approval of the Minister
under paragraph 518.2(1)(i), engage in the
activities referred to in paragraph 508(1)(c)
so long as they relate to its business of
dealing in securities carried on by it in
accordance with provincial laws relating to
securities dealing; and
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(b) if it is a foreign cooperative credit
society, engage in the activities referred to
in paragraph 508(1)(c) so long as they relate
to its business as a cooperative credit
society carried on by it in accordance with
provincial laws relating to cooperative
credit societies.
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| Guarantee and
acceptance of
securities and
bills
|
(3) Notwithstanding subsection 508(2), a
foreign bank, or an entity associated with a
foreign bank, that has received the approval of
the Minister under paragraph 518.2(1)(f) may,
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(a) if it is a foreign securities dealer,
guarantee any securities or accept any bills
of exchange or depository bills in relation to
its business of dealing in securities carried
on by it in accordance with provincial laws
relating to securities dealing; and
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(b) if it is a foreign cooperative credit
society, guarantee any securities or accept
any bills of exchange or depository bills in
relation to its business as a cooperative
credit society carried on by it in accordance
with provincial laws relating to cooperative
credit societies.
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| Acquisition of
Canadian
entity
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518. (1) Notwithstanding paragraph
508(1)(d), a foreign bank designated under
section 517 or an entity associated with such
a foreign bank may, subject to subsection
516(1) and section 518.2,
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(a) acquire or hold control of a Canadian
entity referred to in any of paragraphs
468(1)(g) to (i);
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(b) acquire or hold control of a Canadian
entity referred to in subsection (5) that is a
Canadian financial entity whose business
does not include any business or activity
referred to in subsection (6); or
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(c) become a major owner of a Canadian
entity referred to in paragraph (a) or (b).
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| Foreign banks
with branches,
Canadian
financial
institutions
and entities
|
(2) Notwithstanding paragraph 508(1)(d),
where a foreign bank designated under section
517, or an entity associated with such a foreign
bank,
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(a) is an authorized foreign bank,
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(b) is a foreign insurance company,
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(c) is a foreign securities dealer or foreign
cooperative credit society that has received
the approval of the Minister under
paragraph 518.2(1)(f),
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(d) controls a Canadian entity referred to in
any of paragraphs 468(1)(a) to (i), or a
Canadian entity referred to in any of
paragraphs (5)(a) to (f) that is a Canadian
financial entity, or
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(e) is a major owner of a Canadian entity
referred to in any of paragraphs 468(1)(a) to
(i), or a Canadian entity referred to in any of
paragraphs (5)(a) to (f) that is a Canadian
financial entity,
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the foreign bank and any entity associated
with the foreign bank may, subject to
subsection 516(1) and section 518.2, acquire
or hold control of, or a substantial investment
in, a Canadian entity referred to in subsection
(3) or acquire or hold control of, or a
substantial investment in, a Canadian entity in
the way described in paragraph (4)(a), (b) or
(c).
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| Permitted
investments
|
(3) Subsection (2) applies in respect of the
acquisition or holding of the control of, or a
substantial investment in,
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(a) a Canadian entity referred to in
subsection (5) whose business does not
include any business or activity referred to
in subsection (6); or
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(b) a Canadian entity referred to in
subsection (18) or in any of paragraphs
468(1)(g) to (i).
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| Other
permitted
investments
|
(4) Subsection (2) applies in respect of the
acquisition or holding of the control of, or a
substantial investment in, a Canadian entity
by way of
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(a) an indirect investment permitted by
subsection (8);
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(b) a temporary investment permitted by
any of subsections (9) to (13); or
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(c) a realization of security or a loan
workout permitted by any of subsections
(14) to (16).
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| Financial and
related
investments
|
(5) A foreign bank, or an entity associated
with a foreign bank, that is referred to in
subsection (1) or (2) may, subject to
subsection (6) and section 518.2, acquire or
hold control of, or a substantial investment in,
a Canadian entity - other than an entity
described in paragraphs 468(1)(a) to
(i) - whose business is limited to one or more
of the following:
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(a) engaging in any financial service
activity that a bank is permitted to engage
in under any of paragraphs 409(2)(a) to (d),
in any activity engaged in in accordance
with regulations made under paragraph
519(a) concerning specialized financing, or
in any other activity that a bank is permitted
to engage in under section 410 or 411;
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(b) acquiring or holding shares of, or
ownership interests in, entities that a
foreign bank, or an entity associated with a
foreign bank, is permitted to acquire or hold
under this section, other than subsection
(17), or under subsection 516(1), including
shares or ownership interests acquired or
held in accordance with the regulations
made under paragraph 519(a) concerning
specialized financing;
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(c) engaging in the provision of any services
exclusively to any or all of the following, so
long as the Canadian entity is providing
those services to the foreign bank or any
member of the foreign bank's group,
namely,
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(ii) any member of the foreign bank's
group,
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(iii) any entity that is primarily engaged
in the business of providing financial
services,
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(iv) any permitted entity in which an
entity referred to in subparagraph (iii) has
a substantial investment, or
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(v) any prescribed person, if it is doing so
under prescribed terms and conditions, if
any are prescribed;
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(d) engaging in any activity that a foreign
bank is permitted to engage in, other than an
activity referred to in paragraph (a) or (e),
that relates to
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(i) the promotion, sale, delivery or
distribution of a financial product or
financial service that is provided by the
foreign bank or any member of the
foreign bank's group, or
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(ii) if a significant portion of the business
of the Canadian entity involves an
activity referred to in subparagraph (i),
the promotion, sale, delivery or
distribution of a financial product or
financial service that is provided by any
other entity that is primarily engaged in
the business of providing financial
services;
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(e) engaging in the activities referred to in
the definition ``mutual fund entity'',
``mutual fund distribution entity'' or ``real
property brokerage entity'' in subsection
507(1); and
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(f) engaging in prescribed activities, under
prescribed terms and conditions, if any are
prescribed.
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| Additional
restriction
|
(6) A foreign bank, or an entity associated
with a foreign bank, that is referred to in
subsection (1) or (2) may not acquire or hold
control of, or a substantial investment in, or
become or be a major owner of, a Canadian
entity whose business includes any activity
referred to in any of paragraphs (5)(a) to (e) if
the entity engages in a business referred to in
paragraph 514(1)(a) or (b) or if the activities
of the Canadian entity include
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(a) activities that a bank is not permitted to
engage in under section 412, 415, 417 or
418;
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(b) activities that a bank is not permitted to
engage in under section 416, if the
Canadian entity engages in the activities of
a finance entity or of any other entity as may
be prescribed;
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(c) acquiring or holding control of, or a
substantial investment in, a Canadian entity
that is referred to in subsection (18), or a
Canadian entity that a foreign bank is not
permitted to control or in which a foreign
bank is not permitted to hold a substantial
investment under this section or subsection
516(1), unless the acquisition or holding
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(i) is permitted under any of subsections
(14) to (16),
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(ii) is in accordance with the regulations
made under paragraph 519(a) concerning
specialized financing, or
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(iii) is permitted by the regulations made
under paragraph 519(e); or
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(d) any prescribed activity.
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| Application of
regulations
|
(7) Any regulations made for the purposes
of sections 409 to 411 apply for the purposes
of paragraph (5)(a) and subsection 518.2(1)
unless otherwise provided in the regulations.
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| Indirect
investments
|
(8) Notwithstanding paragraph 508(1)(d), a
foreign bank, or an entity associated with a
foreign bank, that is referred to in subsection
(2) may acquire or hold control of, or a
substantial investment in, a Canadian
entity - other than a Canadian entity that a
foreign bank is permitted to control or in
which a foreign bank is permitted to hold a
substantial investment under this section or
subsection 516(1) - by way of
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(a) an acquisition or holding of the control
of a Canadian entity referred to in any of
paragraphs 468(1)(a) to (i), or of a
prescribed Canadian entity, that has control
of or a substantial investment in the
Canadian entity; or
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(b) an acquisition or holding of shares or
ownership interests in the Canadian entity
by
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(i) a Canadian entity referred to in any of
paragraphs 468(1)(a) to (i), or a
prescribed Canadian entity, that is
controlled by the foreign bank or the
entity associated with a foreign bank, or
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(ii) a Canadian entity controlled by a
Canadian entity referred to in
subparagraph (i).
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| Temporary
investments
|
(9) Notwithstanding paragraph 508(1)(d)
and subject to subsections (10) to (13), a
foreign bank, or an entity associated with a
foreign bank, that is referred to in subsection
(2) may - by way of temporary
investment - acquire or hold control of, or a
substantial investment in, a Canadian entity,
but the foreign bank or entity shall do all
things necessary to ensure that, within two
years after acquiring the control or the
substantial investment or within any other
period that may be specified or approved by
the Minister, it no longer controls or holds a
substantial investment in the entity.
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| Extension
|
(10) On application by a foreign bank, or an
entity associated with a foreign bank, the
Minister may extend the period referred to in
subsection (9) by any further period or
periods.
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| Exception
|
(11) Where a foreign bank, or an entity
associated with a foreign bank, that is referred
to in subsection (2) acquires or holds - by
way of temporary investment - control of, or
a substantial investment in, a Canadian entity
for which the approval of the Minister is
required under this Part, the foreign bank or
entity associated with a foreign bank shall,
within 90 days after acquiring control or after
acquiring the substantial investment,
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