|
|
|
|
| Transitional
|
522.1 (1) An order that was made, and not
revoked, by the Minister under subsection
507(4) of the Act as it read immediately before
the coming into force of this section,
continues in force subject to variation or
revocation by further order of the Minister.
|
|
| Transitional
|
(2) A variation or revocation takes effect
three months after the date the further order is
made unless the Minister and the entity to
which it relates agree that the variation or
revocation shall take effect at another time.
|
|
| Transitional
|
(3) The Minister shall publish in the
Canada Gazette a notice of an order of
revocation made under this section.
|
|
| Transitional
|
522.2 A foreign bank is deemed to be the
subject of an order under section 507.1 if,
immediately before the coming into force of
that section, the foreign bank had received
consent under subsection 521(1), the consent
had not been revoked and the foreign bank or
an entity associated with it was not designated
under subsection 521(1.06), as those
subsections read immediately before the
coming into force of section 507.1.
|
|
| Transitional
|
522.3 The Minister may, by order, revoke or
vary an order made under paragraph 518(3)(b)
or subsection 521(1), as it read immediately
before the coming into force of this section.
|
|
| Transitional
|
522.4 (1) Notwithstanding subsections
518(1) and (2), but subject to subsection (2),
where a foreign bank or an entity associated
with a foreign bank received consent under
subsection 521(1), as that subsection read
immediately before the coming into force of
this section, to acquire or hold control of, or a
substantial investment in, a Canadian entity
whose businesses or activities include any
business or activity referred to in subsection
518(5) and an activity referred to in any of
paragraphs 518(6)(a) to (d), and the consent
has not been revoked, the foreign bank or
entity associated with a foreign bank may
continue to hold control of, or a substantial
investment in, the Canadian entity.
|
|
| Transitional
|
(2) Subsection (1) applies so long as
|
|
|
|
(a) the Canadian entity restricts its
businesses and activities in accordance with
any terms and conditions in the consent
under subsection 521(1), as that subsection
read immediately before the coming into
force of this section, or in an undertaking to
the Minister or Superintendent, other than a
term or condition that limits the size of the
Canadian entity's assets; and
|
|
|
|
(b) neither the foreign bank nor any entity
associated with the foreign bank
|
|
|
|
(i) is an authorized foreign bank, or
|
|
|
|
(ii) controls or is a major shareholder of
a bank or a bank holding company.
|
|
| Transitional
|
(3) Notwithstanding subsections 518(1) and
(2), a foreign bank or an entity associated with
a foreign bank may hold control of, or a
substantial investment in, a Canadian entity
referred to in any of paragraphs 468(1)(g) to
(i), or a Canadian entity referred to in
subsection 518(5) whose business does not
include any business or activity referred to in
subsection 518(6), and the foreign bank or
entity associated with a foreign bank is
deemed to have received any required
approvals under paragraphs 518.2(1)(a) to (e)
in respect of that Canadian entity, if
|
|
|
|
(a) it received the consent under subsection
521(1), as that subsection read immediately
before the coming into force of this section,
to acquire or hold control of, or a substantial
investment in, the Canadian entity and the
consent has not been revoked, or
|
|
|
|
(b) it holds control of, or a substantial
investment in, the Canadian entity by virtue
of paragraph 518(3)(b), as that paragraph
read immediately before the coming into
force of this section, and any approval of the
Minister has not been revoked,
|
|
|
|
and, within one year after the coming into
force of this section, the foreign bank or entity
associated with a foreign bank discloses to the
Minister the nature of its businesses and
activities on the date on which a bill was
introduced in the House of Commons during
the 2nd session of the 36th Parliament entitled
An Act to establish the Financial Consumer
Agency of Canada and to amend certain Acts
in relation to financial institutions.
|
|
| Transitional
|
(4) Notwithstanding subsections 518(1) and
(2), but subject to subsection (5), where a
foreign bank or an entity associated with a
foreign bank holds, by virtue of paragraph
518(3)(b), as that paragraph read immediately
before the coming into force of this section,
control of, or a substantial investment in, a
Canadian entity that is not a Canadian entity
referred to in subsection 518(5), and any
approval of the Minister under that paragraph
has not been revoked, the foreign bank or an
entity associated with a foreign bank may
continue to hold control of, or a substantial
investment in, the Canadian entity after the
repeal of that paragraph.
|
|
| Transitional
|
(5) Subsection (4) applies so long as
|
|
|
|
(a) the Canadian entity restricts its
businesses and activities in accordance with
any terms or conditions in the Minister's
approval under paragraph 518(3)(b), as that
paragraph read immediately before the
coming into force of this section, or in an
undertaking to the Minister or
Superintendent;
|
|
|
|
(b) within one year after the coming into
force of this section, the foreign bank or
entity associated with a foreign bank
discloses to the Minister the nature of its
businesses and activities on the date on
which a bill was introduced in the House of
Commons during the 2nd session of the
36th Parliament entitled An Act to establish
the Financial Consumer Agency of Canada
and to amend certain Acts in relation to
financial institutions;
|
|
|
|
(c) after the coming into force of this
section, the Canadian entity does not
change the nature of its businesses and
activities as of the date referred to in
paragraph (b), and its businesses and
activities remain in conformity with
paragraph 518(3)(a), as that paragraph read
immediately before the coming into force
of this section; and
|
|
|
|
(d) the Canadian entity does not engage in
personal property leasing activities that a
financial leasing entity is prohibited from
engaging in.
|
|
| Transitional
|
(6) Notwithstanding subsections 518(1) and
(2), but subject to subsection (7), where a
foreign bank or an entity associated with a
foreign bank, on the coming into force of this
section, holds control of, or a substantial
investment in, a Canadian entity that is not
referred to in subsection 518(5) and that is not
held by virtue of paragraph 518(3)(b), as that
paragraph read immediately before the
coming into force of this section, the foreign
bank or the entity associated with a foreign
bank may continue to hold control of, or
substantial investment in, the Canadian entity.
|
|
| Transitional
|
(7) Subsection (6) applies so long as
|
|
|
|
(a) within one year after the coming into
force of this section, the foreign bank or
entity associated with a foreign bank
discloses to the Minister the nature of its
businesses and activities on the date on
which a bill was introduced in the House of
Commons during the 2nd Session of the
36th Parliament entitled An Act to establish
the Financial Consumer Agency of Canada
and to amend certain Acts in relation to
financial institutions;
|
|
|
|
(b) after the coming into force of this
section, the Canadian entity does not
change the nature of its businesses and
activities as of the date referred to in
paragraph (a), and its businesses and
activities remain in conformity with
paragraph 518(3)(a), as it read immediately
before the coming into force of this section;
|
|
|
|
(c) the Canadian entity does not engage in
personal property leasing activities that a
financial leasing entity is prohibited from
engaging in; and
|
|
|
|
(d) where the foreign bank, or any entity
associated with the foreign bank, is referred
to in subsection 518(2), neither the foreign
bank nor any entity associated with the
foreign bank
|
|
|
|
(i) is an authorized foreign bank, or
|
|
|
|
(ii) controls or is a major shareholder of
a bank or a bank holding company.
|
|
| Transitional
|
(8) Paragraphs 508(1)(a) and (b) do not
apply to a Canadian entity referred to in any of
subsections (1), (3), (4) and (6).
|
|
| 1999, c. 28,
ss. 35(1) and
(2)
|
128. Subsection 524(3) of the Act is
replaced by the following:
|
|
| Reciprocal
treatment
|
(3) The Minister may make an order only if
the Minister is satisfied that, if the application
is made by a non-WTO Member foreign bank,
treatment as favourable for banks to which
this Act applies exists or will be provided in
the jurisdiction in which the authorized
foreign bank principally carries on business,
either directly or through a subsidiary.
|
|
|
|
129. The Act is amended by adding the
following after section 524:
|
|
| Restriction
|
524.1 Despite subsection 524(1), the
Minister shall not make an order permitting a
foreign bank to establish a branch in Canada
to carry on business in Canada if the foreign
bank or an entity affiliated with the foreign
bank
|
|
|
|
(a) has control of or has a substantial
investment in an entity that engages in
Canada in any personal property leasing
activity that a financial leasing entity as
defined in subsection 464(1) is prohibited
from engaging in; or
|
|
|
|
(b) engages in Canada in any personal
property leasing activity that a financial
leasing entity as defined in subsection
464(1) is prohibited from engaging in.
|
|
| Prohibition
|
524.2 No authorized foreign bank and no
entity affiliated with an authorized foreign
bank may
|
|
|
|
(a) control or have a substantial investment
in an entity that engages in Canada in any
personal property leasing activity that a
financial leasing entity as defined in
subsection 464(1) is prohibited from
engaging in; or
|
|
|
|
(b) engage in Canada in any personal
property leasing activity that a financial
leasing entity as defined in subsection
464(1) is prohibited from engaging in.
|
|
| 1999, c. 28,
s. 35(1)
|
130. Section 526 of the Act is replaced by
the following:
|
|
| Factors to be
considered by
Minister
|
526. Before making an order under
subsection 524(1), the Minister shall take into
account all matters that the Minister considers
relevant to the application, including
|
|
|
|
(a) the nature and sufficiency of the
financial resources of the foreign bank as a
source of continuing financial support for
the carrying on of its business in Canada;
|
|
|
|
(b) the soundness and feasibility of plans of
the foreign bank for the future conduct and
development of its business in Canada;
|
|
|
|
(c) the business record and past
performance of the foreign bank;
|
|
|
|
(d) the reputation of the foreign bank for
being operated in a manner that is
consistent with the standards of good
character and integrity;
|
|
|
|
(e) whether the proposed authorized foreign
bank will be operated responsibly by
persons with the competence and
experience suitable for involvement in the
operation of a financial institution;
|
|
|
|
(f) the impact of any integration of the
businesses and operations in Canada of the
authorized foreign bank with those of its
affiliates in Canada on the conduct of those
businesses and operations; and
|
|
|
|
(g) the best interests of the financial system
in Canada.
|
|
| 1999, c. 28,
s. 35(1)
|
131. (1) Paragraphs 529(1)(e) and (f) of
the Act are replaced by the following:
|
|
|
|
(f) in the case of an authorized foreign bank
that is not subject to the restrictions and
requirements referred to in subsection
524(2), carry on business in Canada without
having to deposit assets having a value of at
least five million dollars, as required by
subparagraphs 534(3)(a)(ii) and
582(1)(b)(i), where the authorized foreign
bank continues to hold a substantial
investment in
|
|
|
|
(i) a bank that is a subsidiary of the
foreign bank and the Minister has
approved an application for voluntary
liquidation and dissolution made by the
subsidiary under section 344, or
|
|
|
|
(ii) a company to which the Trust and
Loan Companies Act applies and the
Minister has approved an application for
voluntary liquidation and dissolution
made by the company under section 349
of that Act; or
|
|
| 1999, c. 28,
s. 35(1)
|
(2) Paragraph 529(5)(c) of the Act is
replaced by the following:
|
|
|
|
(c) with respect to matters described in
paragraph (1)(f), that purports to be effective
more than seven years after the day on which
an order made under subsection 534(1)
becomes effective in respect of the authorized
foreign bank.
|
|
| 1999, c. 28,
s. 35(1)
|
132. Paragraph 530(1)(e) of the Act is
replaced by the following:
|
|
|
|
(e) reserved under section 43 for an existing
or proposed bank or for an existing or
proposed authorized foreign bank or under
section 697 for an existing or proposed bank
holding company.
|
|
| 1999, c. 28,
s. 35(1)
|
133. Subparagraph 534(3)(a)(ii) of the
Act is replaced by the following:
|
|
|
|
(ii) in any other case, five million dollars
or any greater amount that the
Superintendent specifies;
|
|
| 1999, c. 28,
s. 35(1)
|
134. (1) The portion of subsection 539(1)
of the English version of the Act before
paragraph (a) is replaced by the following:
|
|
| Additional
activities
|
539. (1) In addition, an authorized foreign
bank may, in Canada,
|
|
| 1999, c. 28,
s. 35(1)
|
(2) Paragraph 539(1)(b) of the Act is
replaced by the following;
|
|
|
|
(b) provide prescribed bank-related data
processing services;
|
|
|
|
(b.1) with the prior written approval of the
Minister, engage in any of the following
activities, namely,
|
|
|
|
(i) collecting, manipulating and
transmitting
|
|
|
|
(A) information that is primarily
financial or economic in nature,
|
|
|
|
(B) information that relates to the
business of a permitted entity, as
defined in subsection 507(1), or
|
|
|
|
(C) any other prescribed information,
|
|
|
|
(ii) providing advisory or other services
in the design, development or
implementation of information
management systems,
|
|
|
|
(iii) designing, developing or marketing
computer software, and
|
|
|
|
(iv) designing, developing,
manufacturing or selling, as an ancillary
activity to any activity referred to in any
of subparagraphs (i) to (iii) that the
authorized foreign bank is engaging in,
computer equipment integral to the
provision of information services related
to the business of financial institutions or
to the provision of financial services;
|
|
|
|
(b.2) with the prior written approval of the
Minister, develop, design, hold, manage or
otherwise deal with data transmission
systems, information sites, communication
devices or information platforms or portals
that are used
|
|
|
|
(i) to provide information that is
primarily financial or economic in
nature,
|
|
|
|
(ii) to provide information that relates to
the business of a permitted entity, as
defined in subsection 507(1), or
|
|
|
|
(iii) for a prescribed purpose or in
prescribed circumstances;
|
|
|
|
(b.3) engage in prescribed specialized
business management or advisory services;
|
|
| 1999, c. 28,
s. 35(1)
|
(3) Paragraphs 539(3)(a) and (b) of the
Act are replaced by the following:
|
|
|
|
(a) respecting what an authorized foreign
bank may or may not do with respect to the
carrying on of the activities referred to in
paragraphs (1)(b.1) to (b.3) ; and
|
|
|
|
(b) imposing terms and conditions in
respect of
|
|
|
|
(i) the provision of financial services
referred to in paragraph 538(2)(a) that
are financial planning services,
|
|
|
|
(ii) the provision of services referred to in
paragraph 538(2)(c), and
|
|
|
|
(iii) the carrying on of the activities
referred to in any of paragraphs (1)(b.1)
to (b.3) .
|
|
|
|
135. The Act is amended by adding the
following after section 539:
|
|
| Regulations
apply
|
539.1 Regulations made for the purpose of
any of sections 409 to 411 apply in respect of
authorized foreign banks with any
modifications that the circumstances require
unless regulations made under subsection
539(3) provide otherwise.
|
|
| 1999, c. 28,
s. 35(1)
|
135.1 Subparagraph 540(4)(a)(ii) of the
Act is replaced by the following:
|
|
|
|
(ii) a foreign bank that meets the
conditions described in subparagraph
517(1)(a)(i) or (ii) ,
|
|
| 1999, c. 28,
s. 35(1)
|
135.2 Paragraph 543(1)(a) of the Act is
replaced by the following:
|
|
|
|
(a) act as agent for any person in respect of
the provision of any service that is provided
by a financial institution, a permitted entity
as defined in subsection 507(1) or a
prescribed entity and may enter into an
arrangement with any person in respect of
the provision of that service; or
|
|
| 1999, c. 28,
s. 35(1)
|
136. Section 550 of the Act is replaced by
the following:
|
|