Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
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Assented to 2023-06-22
PART 4Various Measures (continued)
DIVISION 11991, c. 46Bank Act (continued)
Amendments to the Act (continued)
131 Sections 627.5 to 627.52 of the Act are replaced by the following:
Marginal note:Provision of information — external complaints body
627.52 An institution shall provide the external complaints body with all information in its possession or control that relates to a complaint in respect of the institution without delay after the external complaints body notifies it that the complaint has been received.
132 Paragraph 627.65(b) of the Act is replaced by the following:
(b) the name of the external complaints body and the manner in which that body may be contacted; and
133 Subsection 627.998 of the Act is amended by adding “and” at the end of paragraph (n) and by replacing paragraphs (o) and (p) with the following:
(o) respecting the requirements to be met by the external complaints body.
134 Subsections 659(1.1) to (1.3) of the Act are replaced by the following:
Marginal note:Special audit
(1.1) The Commissioner may direct that a special audit be made in accordance with any terms and conditions that he or she considers appropriate if, in the opinion of the Commissioner, it is required for the purposes of the administration of the Financial Consumer Agency of Canada Act and the consumer provisions, and may appoint for that purpose
(a) with respect to a bank or an authorized foreign bank, a firm of accountants qualified under subsection 315(1); and
(b) with respect to the external complaints body, a firm of accountants, as defined in section 313.
Marginal note:Report to Commissioner
(1.2) If a bank, an authorized foreign bank or the external complaints body is the subject of a special audit, it shall provide the Commissioner with the results of the audit.
Marginal note:Expenses payable
(1.3) The expenses incurred in respect of any special audit are payable by the bank, the authorized foreign bank or the external complaints body that is the subject of the audit.
135 Section 661 of the Act is replaced by the following:
Marginal note:Compliance agreement
661 The Commissioner may enter into an agreement, called a “compliance agreement”, with a bank, an authorized foreign bank or the external complaints body for the purposes of implementing any measure that is designed so as to further compliance by it with the consumer provisions.
136 Subsections 661.1(2) to (4) of the Act are replaced by the following:
Marginal note:Directions — external complaints body
(1.1) If, in the opinion of the Commissioner, the external complaints body fails, or there are reasonable grounds to believe that it will fail, to comply with a compliance agreement or any of paragraphs 627.49(b) to (m) or to discharge its functions and perform its activities in a manner that is consistent with the purpose set out in section 627.471, the Commissioner may direct the external complaints body to comply with them or to so discharge its functions and perform its activities and to perform any act that in the opinion of the Commissioner is necessary to do so.
Marginal note:Opportunity for representations
(2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) unless the bank, authorized foreign bank or person or the external complaints body is provided with a reasonable opportunity to make representations in respect of the matter.
Marginal note:Temporary direction
(3) If, in the opinion of the Commissioner, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Commissioner may make a temporary direction with respect to the matters referred to in subsection (1) or (1.1) that has effect for a period of not more than 15 days.
Marginal note:Continued effect
(4) A temporary direction under subsection (3) continues to have effect after the end of the 15-day period referred to in that subsection if no representations are made to the Commissioner within that period or, if representations have been made, the Commissioner notifies the bank, authorized foreign bank, person or external complaints body that the Commissioner is not satisfied that there are sufficient grounds for revoking the direction.
137 Subsection 661.2(2) of the Act is replaced by the following:
Marginal note:Court enforcement — external complaints body
(1.1) If the external complaints body contravenes or fails to comply with a compliance agreement, any of paragraphs 627.49(b) to (m) or a direction made under subsection 661.1(1.1) or (3), the Commissioner may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the external complaints body to comply with the compliance 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.
Marginal note:Appeal
(2) An appeal from a decision of a court under subsection (1) or (1.1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
138 Section 974 of the Act is replaced by the following:
Marginal note:Not statutory instruments
974 An instrument issued or made under this Act and directed to a single bank, bank holding company, authorized foreign bank or person, other than a regulation made under paragraph 627.998(o) or an order referred to in section 499, is not a statutory instrument for the purposes of the Statutory Instruments Act.
Transitional Provisions
Marginal note:Definitions
139 (1) The following definitions apply in this section.
- former external complaints body
former external complaints body means an external complaints body as defined in section 2 of the Bank Act as it read before the day on which section 128 of this Act comes into force. (ancien organisme externe de traitement des plaintes)
- new external complaints body
new external complaints body means the body corporate designated under subsection 627.48(1) of the Bank Act, as amended by section 129 of this Act. (nouvel organisme externe de traitement des plaintes)
Marginal note:Revocation of approval
(2) Any approval given to a former external complaints body under subsection 627.48(1) of the Bank Act, as it read immediately before the day on which section 129 of this Act comes into force, is revoked on the later of the day on which the designation of the new external complaints body takes effect and the day on which the former external complaints body resolves every complaint pending before it.
Marginal note:Application before designation
(3) On the day on which section 129 of this Act comes into force, sections 627.48 and 627.49 of the Bank Act, as they read immediately before that day, continue to apply in respect of former external complaints bodies until the day on which the designation of the new external complaints body takes effect.
Marginal note:Application on designation
(4) On the day on which the designation of the new external complaints body takes effect,
(a) unless otherwise specified by the Commissioner, a former external complaints body shall continue the resolution of any complaint pending before it;
(b) sections 627.48 and 627.49 of the Bank Act, as they read immediately before the day on which section 129 of this Act comes into force, continue to apply for the purposes of paragraph (a); and
(c) the new external complaints body shall resolve all complaints that are not pending before any former external complaints body.
2001, c. 9Consequential Amendments to the Financial Consumer Agency of Canada Act
140 Section 2.1 of the Financial Consumer Agency of Canada Act is replaced by the following:
Marginal note:Supervision and protection
2.1 The purpose of this Act is to ensure that financial institutions, the external complaints body and payment card network operators are supervised by an agency of the Government of Canada so as to contribute to the protection of consumers of financial products and services and the public, including by strengthening the financial literacy of Canadians.
141 (1) The portion of paragraph 3(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) supervise financial institutions and the external complaints body to determine whether they are in compliance with
(2) Paragraph 3(2)(c.1) of the Act is replaced by the following:
(c.1) promote the adoption by the external complaints body of policies and procedures designed to implement the provisions, terms and conditions, undertakings or directions referred to in paragraph (a);
(3) Paragraph 3(2)(d) of the Act is replaced by the following:
(d) strengthen the financial literacy of Canadians and promote consumer awareness about the obligations of financial institutions and the external complaints body under the consumer provisions applicable to them and about all matters connected with the protection of consumers of financial products and services; and
142 Subsection 14(1) of the Act is replaced by the following:
Marginal note:Ownership
14 (1) No Commissioner, person appointed under subsection 4(4) or Deputy Commissioner shall hold, directly or indirectly, any interest or right in any shares of any financial institution, any bank holding company, any insurance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body.
143 Subsection 16(1) of the Act is replaced by the following:
Marginal note:No grant or gratuity to be made
16 (1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 shall not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance holding company or the external complaints body, or from a director, officer or employee of any of them, and a financial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, shall not make or give any such grant or gratuity.
144 Subsection 17(1) of the Act is replaced by the following:
Marginal note:Confidential information
17 (1) Subject to subsection (2) and except as otherwise provided in this Act, information regarding the business or affairs of a financial institution or of the external complaints body or regarding persons dealing with a financial institution or with the external complaints body that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsections 5(1) and (2) and 5.1(2), and any information prepared from that information, is confidential and shall be treated accordingly.
145 (1) Subsection 18(1) of the Act is replaced by the following:
Marginal note:Commissioner to ascertain expenses
18 (1) The Commissioner shall, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses incurred in connection with the objects described in subsection 3(3) — and the amounts of any prescribed categories of those expenses in relation to any prescribed group of financial institutions and the external complaints body.
(2) Subsection 18(3) of the Act is replaced by the following:
Marginal note:Assessment
(3) As soon as possible after ascertaining the amounts under subsections (1) and (1.1), the Commissioner shall assess a portion of the total amount of expenses against each financial institution and the external complaints body to the extent and in the manner that the Governor in Council may, by regulation, prescribe.
(3) Subsection 18(4) of the Act is replaced by the following:
Marginal note:Interim assessment
(4) The Commissioner may, during each fiscal year, prepare an interim assessment against any financial institution or the external complaints body.
(4) Subsection 18(5) of the Act is replaced by the following:
Marginal note:Assessment is binding
(5) Every assessment and interim assessment is final and conclusive and binding on the financial institution against which it is made or the external complaints body, as the case may be.
146 Paragraph 34(a) of the Act is replaced by the following:
(a) in aggregate form, its conclusions on the compliance, in that year, of financial institutions and the external complaints body with the consumer provisions applicable to them; and
SOR/2021-181Related Amendments to the Financial Consumer Protection Framework Regulations
147 (1) The portion of section 16 of the Financial Consumer Protection Framework Regulations before paragraph (a) is replaced by the following:
Marginal note:Requirements
16 For the purposes of paragraph 627.49(m) of the Act, the following are prescribed requirements for the external complaints body:
(2) Paragraphs 16(b) and (c) of the Regulations are repealed.
(3) Section 16 of the Regulations is amended by adding “and” at the end of paragraph (d), by striking out “and” at the end of paragraph (e) and by repealing paragraph (f).
DIVISION 2Private Sector Pension Plans
R.S., c. 32 (2nd Supp.)Pension Benefits Standards Act, 1985
148 (1) The definitions defined benefit provision, defined contribution provision and variable benefit in subsection 2(1) of the Pension Benefits Standards Act, 1985 are replaced by the following:
- defined benefit provision
defined benefit provision means a provision of a pension plan under which pension benefits for a member are determined in any way other than that described in paragraph (a) of the definition defined contribution provision and that does not provide for a variable life benefit; (disposition à prestations déterminées)
- defined contribution provision
defined contribution provision means
(a) a provision of a pension plan under which pension benefits for a member are determined solely as a function of the amount of pension benefit that can be provided by
(i) contributions made by and on behalf of that member, and
(ii) interest earnings and other gains and losses allocated to that member, or
(b) a provision of a pension plan that provides for a variable life benefit; (disposition à cotisations déterminées)
- variable benefit
variable benefit means a pension benefit payable in the form of a variable payment out of the pension fund, but does not include a variable life benefit; (prestation variable)
(2) The definition cessation in subsection 2(1) of the French version of the Act is replaced by the following:
- termination
cessation S’agissant d’un régime de pension, s’entend de sa cessation dans les cas visés par les paragraphes 29(1), (2), (2.1) et (4.2). (termination)
(3) Paragraphs (a) and (b) of the definition former member in subsection 2(1) of the Act are replaced by the following:
(a) except in sections 9.2 and 24, paragraph 28(1)(b.1) and subsection 28(2.1), a person who, on or after January 1, 1987, has either ceased membership in the plan or retired;
(b) in section 9.2, paragraph 28(1)(b.1) and subsection 28(2.1), a person who has either ceased membership in the plan or retired and has not, before the termination of the whole of the plan,
(i) transferred their pension benefit credit under section 16.4, 16.91 or 26,
(ii) used their pension benefit credit to purchase a life annuity under section 16.4, 16.91 or 26, or
(iii) had their pension benefits transferred to another pension plan; or
(4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
- variable life benefit
variable life benefit means a pension benefit whose amount varies as a function of factors that include
(a) the amount or rate of return attributable to the investment of the assets of the fund from which the benefit is paid, and
(b) the rate of mortality of the pool of persons who are entitled to receive a benefit from that fund; (prestation viagère variable)
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