Bill C-8
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beneficially owned by the society and its
prescribed subsidiaries exceeds, or the
purchase or acquisition would cause that
aggregate value to exceed, an amount
determined in accordance with the
regulations.
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Aggregate Limit
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Aggregate
limit
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566. A society shall not, and shall not
permit its prescribed subsidiaries to,
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if the aggregate value of
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exceeds, or the acquisition or the making of
the improvement would cause that aggregate
value to exceed, an amount determined in
accordance with the regulations.
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1997, c. 15,
s. 297
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440. Sections 568 and 569 of the Act are
replaced by the following:
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Deemed
temporary
investment
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568. If a society controls or has a substantial
investment in an entity as permitted by this
Part and the society becomes aware of a
change in the business or affairs of the entity
that, if the change had taken place before the
acquisition of control or of the substantial
investment, would have caused the entity not
to be a permitted entity or would have been
such that approval for the acquisition would
have been required under subsection 554(5) ,
the society is deemed to have acquired, on the
day the society becomes aware of the change,
a temporary investment in respect of which
section 557 applies.
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Asset
transactions
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569. (1) A society shall not, and shall not
permit its subsidiaries to, without the approval
of the Superintendent, acquire assets from a
person or transfer assets to a person if
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A + B **** C
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where
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A is the value of the assets;
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B is the total value of all assets that the society
and its subsidiaries acquired from or
transferred to that person in the twelve months
ending immediately before the acquisition or
transfer; and
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C is ten per cent of the total value of the assets
of the society, as shown in the last annual
statement of the society prepared before the
acquisition or transfer.
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Exception
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(2) The prohibition in subsection (1) does
not apply in respect of
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Exception
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(3) The approval of the Superintendent is
not required if
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Value of
assets
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(4) For the purposes of ``A'' in subsection
(1), the value of the assets is
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Total value of
all assets
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(5) For the purposes of subsection (1), the
total value of all assets that the society or any
of its subsidiaries has acquired during the
period of twelve months referred to in
subsection (1) is the purchase price of the
assets or, if the assets are shares of, or
ownership interests in, an entity the assets of
which immediately after the acquisition were
included in the annual statement of the
society, the fair market value of the assets of
the entity at the date of the acquisition.
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Total value of
all assets
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(6) For the purposes of subsection (1), the
total value of all assets that the society or any
of its subsidiaries has transferred during the
period of twelve months referred to in
subsection (1) is the book value of the assets
as stated in the last annual statement of the
society prepared before the transfer or, if the
assets are shares of, or ownership interests in,
an entity the assets of which were included in
the last annual statement of the society before
the transfer, the value of the assets of the entity
as stated in the annual statement.
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441. The Act is amended by adding the
following after section 570:
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Saving
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570.001 A loan or investment referred to in
section 570 is deemed not to be prohibited by
the provisions of this Part.
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1997, c. 15,
s. 303
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442. (1) The portion of subsection
587.1(1) of the Act before paragraph (a) is
replaced by the following:
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Restricted
transactions
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587.1 (1) Except in accordance with this
section or an order made under subsection
678.6(1) , a foreign company shall not
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(2) Subsection 587.1(2) of the Act is
amended by adding the following after
paragraph (a):
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443. 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''
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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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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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444. (1) Sections 604 and 605 of the Act
are replaced by the following:
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Complaints |
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Procedures
for dealing
with
complaints
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604. (1) A foreign company shall
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Procedures to
be filed with
Commission- er
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(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
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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
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(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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(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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445. 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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1996, c. 6,
s. 87
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446. Section 608 of the Act and the
heading before it are replaced by the
following:
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Adequacy of Assets |
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Adequacy of
assets -
foreign
company
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608. (1) A foreign company shall, in
relation to its insurance risks in Canada
maintain an adequate margin of assets in
Canada over liabilities in Canada and shall
comply with any regulations in relation to an
adequate margin of assets in Canada over
liabilities in Canada.
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Liabilities
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(2) For the purposes of subsection (1), 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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(3) 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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(4) Notwithstanding that a foreign
company is complying with regulations made
under paragraph 610(1)(a) or guidelines made
under subsection (3) , the Superintendent may,
by order, direct the foreign company to
increase the margin of its assets in Canada
over its liabilities in Canada.
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Compliance
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(5) A foreign company shall comply with
an order made under subsection (4) within the
time that the Superintendent specifies in the
order .
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447. Paragraph 610(1)(a) of the Act is
replaced by the following:
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448. Subsections 611(1) and (2) of the Act
are replaced by the following:
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Vesting in
trust
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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
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(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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449. Paragraph 647(1)(b) of the Act is
replaced by the following:
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450. Paragraphs 660(2)(a) and (b) of the
Act are replaced by the following:
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451. The title of Part XV of the Act is
replaced by the following:
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