Bill C-8
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and that indirect acquisition is disclosed to the
Minister in writing before the approval is
obtained, the foreign bank or the entity
associated with a foreign bank is deemed to
have obtained the approval of the Minister for
that indirect acquisition.
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Ministerial
approval of
more than one
entity
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(3) If the Minister, under paragraph (1)(g),
approves the acquisition or holding of control
of, or a substantial investment in, a limited
commercial entity by a foreign bank or by an
entity associated with a foreign bank, the
Minister may also authorize the foreign bank
or entity associated with a foreign bank to, at
any time, acquire and hold control of, or a
substantial investment in, another limited
commercial entity that engages in activities
that are substantially the same as those
engaged in by the Canadian entity in respect
of which the approval was given.
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Substantial
investment by
underwriter
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(4) Nothing in this Part precludes a foreign
bank or an entity associated with a foreign
bank from acquiring a substantial investment
in a Canadian entity if the substantial
investment is acquired in the course of a
distribution to the public of shares or
ownership interests in the Canadian entity by
a securities underwriter so long as the
securities underwriter holds the substantial
investment for no longer than six months.
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DIVISION 6 |
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ADMINISTRATION |
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Regulations
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522.23 The Governor in Council may make
regulations for the purposes of this Part and, in
particular, may make regulations
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Application of
regulations
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522.24 Any regulations made for the
purposes of sections 409 to 411 apply for the
purposes of paragraph 522.08(1)(a) and
subsection 522.22(1) unless otherwise
provided in the regulations.
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Divestiture
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522.25 (1) If a foreign bank or an entity
associated with a foreign bank contravenes
any provision of Division 4 or fails to comply
with any terms and conditions imposed by any
order made for the purpose of any of those
provisions, the Minister may, if the Minister
considers it in the public interest to do so, by
order, direct the foreign bank or the entity to
divest itself of the control of, or a substantial
investment in, a bank or bank holding
company to which the offence relates.
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Ceasing to
engage in or
carry on
business
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(2) If an authorized foreign bank or an entity
associated with an authorized foreign bank
contravenes any provision of Division 4 or
fails to comply with any terms and conditions
imposed by any order made for the purpose of
any of those provisions, the Minister may, if
the Minister considers it in the public interest
to do so, revoke the order made under
subsection 524(1).
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Divestment
order
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(3) The Minister may, by order, direct a
foreign bank or an entity associated with a
foreign bank, within any period that the
Minister considers reasonable, to dispose of
assets used in a business or activity engaged in
or carried on, or to dispose of the control of an
entity or a substantial investment in an entity
acquired or held, in contravention of this Part
or in contravention of any terms and
conditions imposed
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Definition
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522.26 (1) In this section and section
522.27, ``decision'' means a decision, an
order, an approval, an extension or a
permission of or by the Minister under this
Part.
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Ministerial
terms and
condition
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(2) A decision may include any terms and
conditions that the Minister considers
appropriate.
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Minister may
vary or
revoke
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(3) The Minister may vary or revoke a
previous decision.
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Effective date
of decision
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(4) A decision varying or revoking a
previous decision takes effect three months
after the day it is made, or at any other time
that is agreed to by the Minister and the
foreign bank, or the entity associated with a
foreign bank, to which the decision relates.
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Publication
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(5) The Minister shall publish in the
Canada Gazette a notice of the making or
revocation of a designation order or an
exemption order.
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Statements
and returns
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522.27 Not later than six months after the
end of its financial year or any other period
that the Superintendent may specify, a foreign
bank or an entity associated with a foreign
bank in respect of which a decision has been
made by the Minister shall, except to the
extent that the Superintendent has exempted it
in relation to any of the following, provide the
Superintendent with
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DIVISION 7 |
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NON-APPLICATION OF INVESTMENT CANADA ACT |
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Investment
Canada Act
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522.28 The Investment Canada Act does
not apply in respect of any of the following,
whether it occurs directly or indirectly:
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DIVISION 8 |
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TRANSITIONAL |
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Definitions
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522.29 (1) The following definitions apply
in this Division.
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``affected
entity'' « entité visée »
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``affected entity'' means
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``affected
foreign bank'' « banque étran- gère visée »
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``affected foreign bank'' means a foreign bank
that
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Former
provision
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(2) Every reference in this Division to a
former provision means a reference to that
provision as it read immediately before the
day this Division comes into force.
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Former
s. 507(4)
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522.3 (1) Every order made under former
subsection 507(4) exempting an entity from
the status of being associated with a foreign
bank or exempting a Canadian entity from
being a ``non-bank affiliate of a foreign bank''
that is in force on the day this Division comes
in force continues in force, subject to any
further order that the Minister may make
varying or revoking it.
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Date order
takes effect
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(2) A revocation order or variation order
takes effect three months after the date it is
made unless the Minister and the entity to
which it relates agree that the order is to take
effect at another time.
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Publication
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(3) The Minister shall publish in the
Canada Gazette a notice of every revocation
order.
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Former par.
518(3)(b) or
s. 521(1)
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522.31 Every order made under former
paragraph 518(3)(b) or former subsection
521(1) that is in force on the day this Division
comes into force continues in force, subject to
any further order that the Minister may make
varying or revoking it.
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Former
s. 521(1)
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522.32 (1) An affected foreign bank or
affected entity that had received consent
under former subsection 521(1) to acquire or
hold control of, or a substantial investment in,
a Canadian entity that is a financial services
entity but is not a permitted Canadian entity or
an entity referred to in any of paragraphs
468(1)(a) to (i) may continue to hold control
of, or a substantial investment in, the
Canadian entity on and after the day this
Division comes into force if the consent had
not been revoked before that day.
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Application
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(2) Subsection (1) applies so long as
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Former par.
518(3)(b) and
former
s. 521(1)
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(3) An affected foreign bank or an affected
entity that, immediately before the day this
Division comes into force, holds control of, or
a substantial investment in, a Canadian entity
that is a permitted Canadian entity or an entity
referred to in any of paragraphs 468(1)(g) to
(i) by virtue of former paragraph 518(3)(b) or
a consent received under former subsection
521(1) may continue to hold control of, or a
substantial investment in, the Canadian entity
on and after the day this Division comes into
force if the approval or consent had not been
revoked before that day and, if it does so, it is
deemed to have received any approval
required under paragraphs 522.22(1)(a) to (e)
in respect of the Canadian entity.
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Former par.
518(3)(b)
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(4) An affected foreign bank or affected
entity that, immediately before the day this
Division comes into force, holds, by virtue of
former paragraph 518(3)(b), control of, or a
substantial investment in, a Canadian entity
that is not a permitted Canadian entity or a
financial services entity may continue to hold
control of, or a substantial investment in, the
Canadian entity on and after the day this
Division comes into force if any approval of
the Minister under that former paragraph has
not been revoked before that day, so long as
the Canadian entity does not engage in leasing
activities.
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Application
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(5) Subsections (3) and (4) apply so long as
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Holding other
than by virtue
of former par.
518(3)(b) or
s. 521(1)
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(6) An affected foreign bank or an affected
entity that, immediately before the day this
Division comes into force, holds, otherwise
than by virtue of former paragraph 518(3)(b)
or a consent received under former subsection
521(1), control of, or a substantial investment
in, a Canadian entity that is not a permitted
Canadian entity or a financial services entity
may continue to hold control of, or a
substantial investment in, the Canadian entity
on and after the day this Division comes into
force.
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Application
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(7) Subsection (6) applies so long as
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Investments
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522.33 (1) Despite section 517 and subject
to subsection (2), paragraph 510(1)(d) does
not apply in respect of the holding of control
of, or a substantial investment in, a Canadian
entity whose principal activity in Canada is an
activity referred to in any of former
subparagraphs 518(3)(a)(i) to (v) and that was
acquired by a foreign bank or an entity
associated with a foreign bank before August
1, 1997 and before
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Restriction
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(2) Subsection (1) applies only if the foreign
bank or an entity associated with the foreign
bank
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1999, c. 28,
ss. 35(1) and
(2)
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133. (1) Subsection 524(3) of the Act is
replaced by the following:
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Reciprocal
treatment
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(3) The Minister may make an order only if
the Minister is satisfied that, if the application
is made by a non-WTO Member foreign bank,
treatment as favourable for banks to which
this Act applies exists or will be provided in
the jurisdiction in which the authorized
foreign bank principally carries on business,
either directly or through a subsidiary.
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1999, c. 28,
s. 35(1)
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(2) Paragraph 524(4)(b) of the Act is
replaced by the following:
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