Bill C-38
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Exceptions for Foreign Financial Institutions |
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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
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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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Exceptions relative to Federal Financial Institutions |
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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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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
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(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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Designation of Foreign Banks |
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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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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 Financial Branches |
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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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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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Guarantee and
acceptance of
securities and
bills
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(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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Foreign Bank Conglomerates Offering Financial Services |
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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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Foreign banks
with branches,
Canadian
financial
institutions
and entities
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(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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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
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(3) Subsection (2) applies in respect of the
acquisition or holding of the control of, or a
substantial investment in,
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Other
permitted
investments
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(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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Financial and
related
investments
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(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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Additional
restriction
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(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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Application of
regulations
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(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
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(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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Temporary
investments
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(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
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(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
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(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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