Bill C-8
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Prudential
agreement
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614.1 The Superintendent may enter into an
agreement, called a ``prudential agreement'',
with an authorized foreign bank for the
purposes of implementing any measure
designed to protect the interests of its
depositors and creditors in respect of its
business in Canada.
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1999, c. 28,
s. 35(1)
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168. Subsection 616(1) of the Act is
replaced by the following:
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Court
enforcement
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616. (1) Where an authorized foreign bank
or a 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
authorized foreign bank or person to comply
with the prudential agreement or the
direction, cease the contravention or do any
thing that is required to be done, and on the
application the court may so order and make
any other order it thinks fit.
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169. The Act is amended by adding the
following after section 617:
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Disqualification and Removal of Principal
Officers
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Application
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617.1 (1) This section applies only in
respect of an authorized foreign bank
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Information to
be provided
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(2) An authorized foreign bank shall
provide the Superintendent with the name of
any person who has been selected by the
authorized foreign bank for appointment as
principal officer, together with such other
information about the background, business
record and experience of the person as the
Superintendent may require.
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When
information to
be provided
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(3) The information required by subsection
(2) shall be provided to the Superintendent at
least 30 days prior to the date of the
appointment or within any shorter period that
the Superintendent may allow.
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Disqualifi- cation
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(4) If the Superintendent is of the opinion
that, on the basis of the competence, business
record, experience, conduct or character of a
person, he or she is not suitable to hold the
position of principal officer, the
Superintendent may, by order, disqualify the
person from being appointed to that office.
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Risk of
prejudice
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(5) In forming an opinion under subsection
(4), the Superintendent must consider whether
the interests of the depositors and creditors of
the authorized foreign bank in respect of its
business in Canada would likely be prejudiced
if the person were to take office.
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Representa- tions may be made
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(6) The Superintendent must in writing
notify the person concerned and the
authorized foreign bank of an order that the
Superintendent proposes to make under
subsection (4) and must afford them an
opportunity within 15 days after the date of the
notice, or within any longer period that the
Superintendent allows, to make
representations to the Superintendent in
relation to the matter.
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Prohibition
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(7) If an order is made under subsection (4)
disqualifying a person from being appointed
as principal officer, the person shall not be,
and the authorized foreign bank shall not
permit the person to be, appointed to that
position.
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Removal
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617.2 (1) The Superintendent may, by
order, remove a person from office as the
principal officer of an authorized foreign bank
if the Superintendent is of the opinion that the
person is not suitable to hold that office
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Risk of
prejudice
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(2) In forming an opinion under subsection
(1), the Superintendent must consider whether
the interests of the depositors and creditors of
the authorized foreign bank in respect of its
business in Canada have been or are likely to
be prejudiced by the person's holding office as
principal officer.
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Representa- tions may be made
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(3) The Superintendent must in writing
notify the principal officer and the authorized
foreign bank of any removal order that the
Superintendent proposes to make under
subsection (1) and must afford them an
opportunity within 15 days after the date of the
notice, or within any longer period that the
Superintendent allows, to make
representations to the Superintendent in
relation to the matter.
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Suspension
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(4) If the Superintendent is of the opinion
that the public interest is likely to be
prejudiced by the principal officer continuing
to exercise the powers or carry out the duties
and functions of that office during the period
for making representations, the
Superintendent may make an order
suspending the principal officer. The
suspension may not extend beyond 10 days
after the expiration of that period.
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Notice of
order
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(5) The Superintendent shall, without delay,
notify the principal officer and the authorized
foreign bank of a removal order or suspension
order.
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Consequences
of removal
order
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(6) The principal officer ceases to hold that
office as of the date the removal order is made
or any later date specified in the order.
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Appeal
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(7) The principal officer or the authorized
foreign bank may, within 30 days after the date
of receipt of notice of the removal order under
subsection (5), or within any longer period
that the Court allows, appeal the matter to the
Federal Court.
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Powers of
Federal Court
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(8) The Federal Court, in the case of an
appeal, may dismiss the appeal or set aside the
removal order.
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Order not
stayed by
appeal
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(9) A removal order is not stayed by an
appeal.
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1999, c. 28,
s. 35(1)
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170. (1) Paragraph 619(2)(c) of the Act is
repealed.
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(2) Subsection 619(2) of the Act is
amended by striking out the word ``or'' at
the end of paragraph (e), by adding the
word ``or'' at the end of paragraph (f) and
by adding the following after paragraph (f):
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1999, c. 28,
s. 35(1)
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171. Subsection 627(2) of the Act is
replaced by the following:
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Priority not
affected
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(2) Nothing in subsection (1) prejudices or
affects the priority of any holder of any
security interest in any property of an
authorized foreign bank.
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172. The title of Part XIII of the Act is
replaced by the following:
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REGULATION OF BANKS - SUPERINTENDENT |
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1999, c. 28,
s. 39
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173. Sections 633 and 634 of the Act are
replaced by the following:
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Copy of
by-laws
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633. A bank 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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Register of
banks
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634. (1) The Superintendent shall, in
respect of each bank for which an order
approving the commencement and carrying
on of business has been made, cause a register
to be maintained containing a copy of
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Form
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(2) The register may be maintained in
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Access
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(3) 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
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(4) 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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1999, c. 28,
s. 41
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174. Subsection 636(1) of the Act is
replaced by the following:
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Confidential
information
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636. (1) Subject to sections 638 and 639, all
information regarding the business or affairs
of a bank or a foreign bank , or regarding a
person dealing with a bank or a foreign bank ,
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. 12; 1999, c.
28, s. 46
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175. Section 642 of the Act is replaced by
the following:
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Report
respecting
disclosure
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642. 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
banks and describing the state of progress
made in enhancing the disclosure of
information in the financial services industry.
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1999, c. 28,
s. 46
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176. Subsection 643(1) of the Act is
replaced by the following:
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Examination
of banks
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643. (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 bank that the Superintendent
considers to be necessary or expedient to
determine whether the bank is complying
with the provisions of this Act and whether
the bank 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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177. The Act is amended by adding the
following after the heading ``Remedial
Powers'' after section 644:
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Prudential Agreements
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Prudential
agreement
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644.1 The Superintendent may enter into an
agreement, called a ``prudential agreement'',
with a bank for the purposes of implementing
any measure designed to maintain or improve
its safety and soundness.
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1999, c. 28,
s. 48
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178. Subsection 646(1) of the Act is
replaced by the following:
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Court
enforcement
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646. (1) Where a bank 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 bank
or person to comply with the prudential
agreement or the 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.
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1996, c. 6,
s. 14
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179. The heading before section 647 of the
Act is replaced by the following:
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Disqualification and Removal of Directors
or Senior Officers
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Meaning of
``senior
officer''
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646.1 In sections 647 and 647.1, ``senior
officer'' means the chief executive officer,
secretary, treasurer or controller of a bank or
any other officer reporting directly to the
bank's board of directors or chief executive
officer.
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1996, c. 6,
s. 14; 1999, c.
28, s. 49
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180. (1) Paragraphs 647(1)(a) and (b) of
the Act are replaced by the following:
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1996, c. 6,
s. 14; 1999, c.
28, s. 49(1)
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(2) Paragraph 647(2)(b) of the Act is
replaced by the following:
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1996, c. 6,
s. 14; 1999, c.
28, s. 49(1)
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(3) The portion of subsection 647(2) of the
French version of the Act after paragraph
(c) is replaced by the following:
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Elle lui communique également les
renseignements personnels qui les concernent
et les renseignements sur leur expérience et
leur dossier professionnel qu'il peut exiger .
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1996, c. 6,
s. 14; 1999, c.
28, s. 49(1)
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(4) Subsections 647(4) and (5) of the Act
are replaced by the following:
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Disqualifi- cation or removal
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(4) If the Superintendent is of the opinion
that, on the basis of the competence, business
record, experience, conduct or character of a
person, he or she is not suitable to hold that
position, the Superintendent may, by order,
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Risk of
prejudice
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(4.1) In forming an opinion under
subsection (4), the Superintendent must
consider whether the interests of the
depositors and creditors of the bank would
likely be prejudiced if the person were to take
office or continue to hold office, as the case
may be.
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Representa- tions may be made
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(5) The Superintendent must in writing
notify the person concerned and the bank of
any action that the Superintendent proposes to
take under subsection (4) and must afford
them an opportunity within 15 days after the
date of the notice, or within any longer period
that the Superintendent allows , to make
representations to the Superintendent in
relation to the matter.
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