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(a.2) cause itself to be reinsured, on an
assumption basis, against all or any portion
of the risks undertaken by it in respect of its
policies in Canada by any body corporate
incorporated under the laws of a province
that is authorized to transact the classes of
insurance to be reinsured if the
Superintendent has entered into satisfactory
arrangements concerning the reinsurance
with
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(i) the appropriate official or public body
responsible for the supervision of the
body corporate,
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(ii) the body corporate, or
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(iii) the appropriate official or public
body and the body corporate;
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427.1 Section 598 of the Act, as enacted by
section 307 of An Act to amend certain laws
relating to financial institutions, being
chapter 15 of the Statutes of Canada, 1997,
is replaced by the following:
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| 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,
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(a) the interest or discount applicable to the
loan or advance;
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(b) any amount charged in connection with
the loan or advance that is payable by the
borrower to the foreign company; and
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(c) any charge prescribed to be included in
the cost of borrowing.
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For those purposes, however, ``cost of
borrowing'' does not include any charge
prescribed to be excluded from the cost of
borrowing.
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428. (1) Sections 604 and 605 of the Act
are replaced by the following:
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| Procedures
for dealing
with
complaints
|
604. (1) A foreign company shall
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(a) establish procedures for dealing with
complaints made by persons in Canada
having requested or received products or
services in Canada from the foreign
company ;
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(b) designate an officer or employee of the
foreign company to be responsible for
implementing those procedures; and
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(c) designate one or more officers or
employees of the foreign company to
receive and deal with those complaints.
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| Procedures to
be filed with
Commissioner
|
(2) A foreign company shall file with the
Commissioner a copy of its procedures
established under paragraph (1)(a) .
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| Obligation to
be member of
complaints
body
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604.1 In any province, if there is no law of
the province that makes a foreign company
subject to the jurisdiction of an organization
that deals with complaints made by persons
having requested or received products or
services in the province from a foreign
company, the foreign company shall be a
member of an organization that is not
controlled by it and that deals with those
complaints that have not been resolved to the
satisfaction of the persons under procedures
established by foreign companies under
paragraph 604(1)(a).
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| Information
on contacting
Agency
|
605. (1) A foreign company shall, in the
prescribed manner, provide a person in
Canada requesting or receiving a product or
service in Canada from it with prescribed
information on how to contact the Agency if
the person has a complaint about an
arrangement referred to in subsection 601(3),
a payment, credit or charge card referred to in
subsection 601(2) , 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, or about any other
obligation of the foreign company under a
consumer provision.
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| Report
|
(2) The Commissioner shall prepare a
report, to be included in the report referred to
in section 34 of the Financial Consumer
Agency of Canada Act , respecting
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(a) procedures for dealing with complaints
established by foreign companies pursuant
to paragraph 604(1)(a); and
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(b) the number and nature of complaints
that have been brought to the attention of
the Agency by persons who have requested
or received a product or service from a
foreign company.
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(2) If this section comes into force before
paragraph 604(1)(a) and subsection 605(1)
of the Act, as enacted, respectively, by
sections 311 and 312 of An Act to amend
certain laws relating to financial institutions,
being chapter 15 of the Statutes of Canada,
1997, come into force, then sections 311 and
312 of that Act are repealed.
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429. The Act is amended by adding the
following after section 607:
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| Regulations re
disclosure
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607.1 The Governor in Council may,
subject to any other provisions of this Act
relating to the disclosure of information, make
regulations respecting the disclosure of
information by foreign companies or any
prescribed class of foreign companies,
including regulations respecting
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(a) the information that must be disclosed,
including information relating to
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(i) any product or service or prescribed
class of products or services offered by
them,
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(ii) any of their policies, procedures or
practices relating to the offer by them of
any product or service or prescribed class
of products or services,
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(iii) anything they are required to do or to
refrain from doing under a consumer
provision, and
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(iv) any other matter that may affect their
dealings with customers or the public;
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(b) the manner, place and time in which, and
the persons to whom, information is to be
disclosed; and
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(c) the content and form of any
advertisement by foreign companies or any
prescribed class of foreign companies
relating to any matter referred to in
paragraph (a).
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| 1996, c. 6,
ss. 87(2), (3),
(4)(F)
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430. Subsections 608(2) to (4) of the Act
are replaced by the following:
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| Adequacy of
assets and
liquidity -
foreign
property and
casualty
companies
|
(2) A foreign property and casualty
company shall, in relation to its insurance
risks in Canada, maintain an adequate margin
of assets in Canada over liabilities in Canada
and adequate and appropriate forms of
liquidity and shall comply with any
regulations in relation to an adequate margin
of assets in Canada over liabilities in Canada
and adequate and appropriate forms of
liquidity.
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| Liabilities
|
(3) For the purposes of subsections (1) and
(2) , the liabilities in Canada of a foreign
company include the reserve included in the
annual return required under subsection
665(2).
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| Guidelines
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(4) The Superintendent may make
guidelines in respect of any matter referred to
in paragraph 610(1)(a).
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| Directives
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(5) Notwithstanding that a foreign
company is complying with regulations made
under paragraph 610(1)(a) or guidelines made
under subsection (4) , the Superintendent may,
by order, direct the foreign company to
increase the margin of its assets in Canada
over its liabilities in Canada or to provide
additional liquidity in the forms and the
amounts that the Superintendent requires.
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| Compliance
|
(6) A foreign company shall comply with
an order made under subsection (5) within the
time that the Superintendent specifies in the
order .
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431. Paragraph 610(1)(a) of the English
version of the Act is replaced by the
following:
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(a) respecting the maintenance by foreign
companies of adequate margins of assets in
Canada over liabilities in Canada and
adequate and appropriate forms of
liquidity;
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432. Subsections 611(1) and (2) of the Act
are replaced by the following:
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| Vesting in
trust
|
611. (1) The assets that a foreign company
is required to maintain in Canada under
sections 608 and 609 and the regulations made
under section 610 must be vested in trust in a
Canadian financial institution chosen by the
foreign company.
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| Conflict of
interest
|
(2) No Canadian financial institution may
be appointed as trustee if at the time of the
appointment there is a material conflict of
interest between the Canadian financial
institution's role as trustee and any other of its
roles.
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433. Paragraph 647(1)(b) of the Act is
replaced by the following:
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(b) accounting records respecting its
insurance business in Canada; and
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434. Paragraphs 660(2)(a) and (b) of the
Act are replaced by the following:
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(a) require the management of the
provincial company to establish procedures
for complying with Part XI;
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(b) review those procedures and their
effectiveness in ensuring that the provincial
company is complying with Part XI;
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(b.1) if an insurance holding company or a
bank holding company that is widely held
has a significant interest in any class of
shares of the provincial company, establish
policies for entering into transactions
referred to in section 528.1; and
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435. The title of Part XV of the Act is
replaced by the following:
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436. Section 669 of the Act is replaced by
the following:
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| Copy of
by-laws
|
669. A company shall send to the
Superintendent within thirty days after the
coming into effect of a by-law or an
amendment to a by-law, a copy of the by-law
or amendment.
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| 1997, c. 15,
s. 324
|
437. (1) Subsection 670(2) of the Act is
amended by adding the word ``and'' at the
and of paragraph (a), by striking out the
word ``and'' at the end of paragraph (b) and
by repealing paragraph (c).
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| 1997, c. 15,
s. 324
|
(2) Subsection 670(3) of the Act is
amended by adding the word ``and'' at the
and of paragraph (a), by striking out the
word ``and'' at the end of paragraph (b) and
by repealing paragraph (c).
|
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| 1997, c. 15,
s. 324
|
(3) Subsection 670(4) of the Act is
replaced by the following:
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| Form
|
(4) The register may be maintained in
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(a) a bound or loose-leaf form or a
photographic film form; or
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(b) a system of mechanical or electronic
data processing or any other information
storage device that is capable of
reproducing any required information in
intelligible written form within a
reasonable time.
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| Access
|
(5) Persons are entitled to reasonable access
to the register and may make copies of or take
extracts from the information in it.
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| Evidence
|
(6) A statement containing information in
the register and purporting to be certified by
the Superintendent is admissible in evidence
in all courts as proof, in the absence of
evidence to the contrary, of the facts stated in
the statement without proof of the
appointment or signature of the
Superintendent.
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438. Subsection 672(1) of the Act is
replaced by the following:
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| Confidential
information
|
672. (1) Subject to section 673, all
information regarding the business or affairs
of a company, society, foreign company or
provincial company, or regarding a person
dealing with any of them , that is obtained by
the Superintendent, or by any person acting
under the direction of the Superintendent, as
a result of the administration or enforcement
of any Act of Parliament, and all information
prepared from that information , is
confidential and shall be treated accordingly.
|
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| 1996, c. 6,
s. 93
|
439. Section 673.3 of the Act is replaced
by the following:
|
|
| Report
respecting
disclosure
|
673.3 The Superintendent shall prepare a
report, to be included in the report referred to
in section 40 of the Office of the
Superintendent of Financial Institutions Act,
respecting the disclosure of information by
companies, societies, foreign companies or
provincial companies and describing the state
of progress made in enhancing the disclosure
of information in the financial services
industry.
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440. Subsections 674(1) and (2) of the Act
are replaced by the following:
|
|
| Examination
of companies,
etc.
|
674. (1) The Superintendent, from time to
time, but at least once in each calendar year,
shall make or cause to be made any
examination and inquiry into the business and
affairs of each company, society, foreign
company and provincial company that the
Superintendent considers to be necessary or
expedient to determine whether the company,
society, foreign company or provincial
company is complying with the provisions of
this Act and whether the company, society or
provincial company or the insurance business
in Canada of the foreign company is in a sound
financial condition and, after the conclusion
of each examination and inquiry, shall report
on it to the Minister.
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| Examination
need not be
made
annually
|
(2) If , in the opinion of the Superintendent,
the circumstances so warrant in the case of a
company, a provincial company or a foreign
company that is not a fraternal benefit society ,
the examination and inquiry may be made less
frequently than annually but not less
frequently than triennially.
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| Examination
need not be
made
annually
|
(2.1) If, in the opinion of the
Superintendent, the circumstances so warrant
in the case of a society or a foreign company
that is a fraternal benefit society, the
examination and inquiry may be made less
frequently than annually.
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441. The Act is amended by adding the
following after the heading ``Remedial
Powers'' after section 675:
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Prudential Agreements
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|
| Prudential
agreement
|
675.1 The Superintendent may enter into an
agreement, called a ``prudential agreement'',
with a company, society or provincial
company for the purposes of implementing
any measure designed to maintain or improve
its safety and soundness or with a foreign
company for the purposes of implementing
any measure designed to protect the interests
of its policyholders and creditors in respect of
its insurance business in Canada.
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|
442. Subsection 678(1) of the Act is
replaced by the following:
|
|
| Court
enforcement
|
678. (1) Where a company, society, foreign
company, provincial company or person
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(a) is contravening or has failed to comply
with a prudential agreement entered into
under section 675.1 or a direction of the
Superintendent issued to the company,
society, foreign company, provincial
company or person pursuant to subsection
676(1) or (3),
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(b) is contravening this Act, or
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(c) has omitted to do any thing under this
Act that is required to be done by or on the
part of the company, society, foreign
company, provincial company or person,
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the Superintendent may, in addition to any
other action that may be taken under this Act,
apply to a court for an order requiring the
company, society, foreign company,
provincial company or person to comply with
the prudential agreement or direction, cease
the contravention or do any thing that is
required to be done, and on such application
the court may so order and make any other
order it thinks fit.
|
|
| 1996, c. 6,
s. 95
|
443. The heading before section 678.1 of
the Act is replaced by the following:
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|
Disqualification and Removal
|
|
| Meaning of
``senior
officer''
|
678.01 In sections 678.1 and 678.2, ``senior
officer'' means the chief executive officer,
secretary, treasurer, controller or actuary of a
company, society or provincial company, or
any other officer reporting directly to its board
of directors or chief executive officer.
|
|
| 1996, c. 6,
s. 95
|
444. (1) Paragraphs 678.1(1)(a) and (b) of
the Act are replaced by the following:
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(a) that has been notified by the
Superintendent that this section applies to it
where the company, society or provincial
company is subject to measures designed to
maintain or improve its safety and
soundness, which measures
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(i) have been specified by the
Superintendent by way of conditions or
limitations in respect of the order
approving the commencement and
carrying on of its business, or
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(ii) are contained in a prudential
agreement entered into under section
675.1 or an undertaking given by the
company, society or provincial company
to the Superintendent; or
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(b) that is the subject of a direction made
under section 676 or an order made under
subsection 515(3) or 516(4).
|
|
| 1996, c. 6,
s. 95
|
(2) Paragraph 678.1(2)(b) of the Act is
replaced by the following:
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