Bill C-38
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Representative Offices and Head Offices |
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Permitted
Canadian
offices
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509. Notwithstanding paragraph 508(1)(a)
or (b), a foreign bank may
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Examination
of representa- tive offices
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510. (1) The Superintendent shall, from
time to time, make or cause to be made such
examination and inquiry into the operation of
any representative office of a foreign bank and
the conduct of the personnel in that office as
the Superintendent considers necessary for the
purpose of ascertaining whether the office is
being operated, and whether the personnel of
the office are conducting themselves, in
accordance with the rules prescribed for the
purposes of paragraph 509(a).
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Powers of
Superinten- dent
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(2) For the purposes of subsection (1), the
Superintendent and any person acting under
the direction of the Superintendent have the
same powers and obligations that the
Superintendent has in relation to the
examination of banks under this Act.
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Cancellation
of registration
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511. The Superintendent may, by order,
cancel the registration of a representative
office of a foreign bank if
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Business
conducted
from head
office in
Canada
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512. (1) Subject to subsections (2) and (3),
where the head office of a foreign bank is
located in Canada pursuant to paragraph
509(b), the foreign bank shall not conduct any
business from that office with persons resident
in Canada or with Her Majesty in right of
Canada or a province except for the purpose of
acquiring premises, supplies, services and
staff for that office.
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Exception
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(2) Where a foreign bank, immediately
prior to the establishment of its head office in
Canada pursuant to paragraph 509(b), held
deposits of, or had loans outstanding to,
persons resident in Canada or Her Majesty in
right of Canada or a province, the foreign bank
may repay those deposits and collect those
loans through the head office in Canada.
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Exception
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(3) Where a foreign bank controlled a bank
or was a major shareholder of a bank
immediately prior to the establishment of the
foreign bank's head office in Canada pursuant
to paragraph 509(b), the foreign bank may
continue to carry out from the head office in
Canada any activities that were carried out
from the head office of the foreign bank in
relation to the bank prior to the establishment
of the head office in Canada.
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Foreign Bank Conglomerates Offering No Financial Services |
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Canadian
commercial
entities
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513. (1) Notwithstanding paragraph
508(1)(d) but subject to subsections (4) to (7),
a foreign bank or an entity associated with a
foreign bank may acquire or hold control of,
or a substantial investment in, a Canadian
entity, other than a Canadian entity referred to
in any of paragraphs 468(1)(a) to (i), so long
as all of the Canadian entity's businesses and
activities in Canada, or substantially all of
them as determined under the regulations, do
not include activities that are referred to in
paragraphs (a) to (f) - other than prescribed
activities - of the definition ``Canadian
financial entity'' in subsection 507(1).
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Canadian
commercial
branches
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(2) Notwithstanding paragraphs 508(1)(a)
and (b) but subject to subsections (3) to (5), a
foreign bank - or an entity associated with a
foreign bank and incorporated or formed by or
under the laws of a country other than
Canada - may carry on in Canada businesses
and activities so long as all of its businesses
and activities outside Canada, or substantially
all of them as determined under the
regulations, do not include
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Businesses
and activities
of Canadian
commercial
branches
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(3) Subsection (2) applies to a foreign bank,
or an entity associated with a foreign bank, so
long as all of its businesses and activities in
Canada, or substantially all of them as
determined under the regulations, do not
include activities that are referred to in
paragraphs (a) to (f) - other than prescribed
activities - of the definition ``Canadian
financial entity'' in subsection 507(1).
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Canadian
financial
branches
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(4) Subsections (1), (2), (6) and (7) and
516(2) do not apply to a foreign bank or an
entity associated with a foreign bank if it or
any entity associated with the foreign bank
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Canadian
financial
institutions or
entities
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(5) Subsections (1), (2), (6) and (7) and
516(2) do not apply to a foreign bank or an
entity associated with a foreign bank if it or
any entity associated with the foreign bank
controls, or is a major owner of,
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Acquisition of
substantial
investment by
foreign bank
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(6) Notwithstanding subsection (1) and
paragraph 508(1)(d), a foreign bank may
acquire or hold a substantial investment in
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so long as the foreign bank and any entity
associated with it meet the conditions set out
in subsections (4) and (5).
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Acquisition of
substantial
investment by
entity
associated
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(7) Notwithstanding subsection (1) and
paragraph 508(1)(d), an entity associated with
a foreign bank may acquire or hold a
substantial investment in
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so long as the entity and any other entity
associated with the foreign bank meet the
conditions set out in subsections (4) and (5).
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Non-applicati
on
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(8) Paragraphs 508(1)(a) and (b) do not
apply to a Canadian entity referred to in
subsection (1), (6) or (7).
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Restrictions on Non-Bank Affiliates |
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Non-bank
affiliates -
prohibited
activities
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514. (1) Notwithstanding any provision of
this Part except section 507.1, a non-bank
affiliate of a foreign bank shall not, in Canada,
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Disclosure of
status
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(2) A non-bank affiliate of a foreign bank
that carries on as part of its business the
provision of financial services shall not
borrow money in Canada from the public
without disclosing that
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Manner of
disclosure
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(3) The disclosure shall be
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Exception for
certain
borrowing
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(4) Subsection (2) does not apply
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Exception -
deposit-taking
institutions
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(5) Subsections (1) and (2) do not apply to
a non-bank affiliate that is
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Exception -
insurance
company or
securities
dealer
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(6) Subsection (2) does not apply where the
non-bank affiliate is
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Deposits
prohibited
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514.1 (1) Notwithstanding any provision of
this Part except section 507.1, a foreign
bank - or an entity associated with a foreign
bank and incorporated or formed by or under
the laws of a country other than
Canada - shall not, as part of its business in
Canada,
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Disclosure of
status
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(2) A foreign bank or entity referred to in
subsection (1) that carries on, as part of its
business in Canada, the provision of financial
services shall not borrow money in Canada
from the public without disclosing that
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Manner of
disclosure
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(3) The disclosure shall be
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Exception for
certain
borrowing
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(4) Subsection (2) does not apply
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Exception -
authorized
foreign banks
and foreign
cooperative
credit
societies
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(5) Subsections (1) and (2) do not apply to
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Exception -
foreign
insurance
company or
securities
dealer
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(6) Subsection (2) does not apply to a
foreign bank, or an entity associated with a
foreign bank, that is
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