Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2023, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2023, No. 1 [3565 KB]
Assented to 2023-06-22
PART 4Various Measures (continued)
DIVISION 33Legislation Related to Financial Institutions (continued)
1991, c. 45Trust and Loan Companies Act (continued)
528 (1) Subsection 514(1) of the English version of the Act is replaced by the following:
Marginal note:Powers of directors and officers suspended
514 (1) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the company and of the officers of the company responsible for its management are suspended.
(2) The portion of subsection 514(2) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Superintendent to manage company
(2) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent shall manage the business and affairs of the company and in so doing the Superintendent
(3) Subsection 514(3) of the English version of the Act is replaced by the following:
Marginal note:Persons to assist
(3) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the company.
529 Section 515 of the Act is renumbered as subsection 515(1) and is amended by adding the following:
Marginal note:Expiration of control — Minister’s direction
(2) Control by the Superintendent under subsection 510(1.11) of a company or of the assets of a company and the assets held in trust by or under the administration of the company expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the company stating that the Minister is of the opinion, on the recommendation of the Superintendant, that corrective measures have been taken in response to the reasons related to national security and that the company can resume control of its business and affairs.
530 Paragraphs 515.1(a) and (b) of the Act are replaced by the following:
(a) the assets of the company and the assets held in trust by or under the administration of the company are under the control of the Superintendent under subparagraph 510(1)(b)(i) or (ii) or paragraph 510(1.11)(b) or (c); or
(b) the company is under the control of the Superintendent under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d).
531 The portion of section 516 of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Requirement to relinquish control
516 If no action has been taken by the Superintendent under section 515.1 and, after 30 days following the taking of control by the Superintendent under subsection 510(1) or (1.11) of a company or of the assets of a company and the assets held in trust by or under the administration of the company, the Superintendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice,
532 Section 517 of the English version of the Act is replaced by the following:
Marginal note:Advisory committee
517 The Superintendent may, from among the companies that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a company under subsection 510(1) or (1.11), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the company.
533 Subsection 518(1) of the English version of the Act is replaced by the following:
Marginal note:Expenses payable by company
518 (1) If the Superintendent has taken control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d) and the control expires or is relinquished under section 515 or paragraph 516(a), the Superintendent may direct that the company be liable for repayment of all or part of the expenses resulting from the taking of control of the company and assessed against and paid by other companies under section 23 of the Office of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent.
534 Section 519 of the English version of the Act is replaced by the following:
Marginal note:Priority of claim in liquidation
519 In the case of the winding-up of a company, the expenses resulting from the taking of control of the company under subsection 510(1) or (1.11) and assessed against and paid by other companies under section 23 of the Office of the Superintendent of Financial Institutions Act, and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the company that ranks after all other claims but prior to any claim in respect of the shares of the company.
535 Subsection 527.4(1) of the Act is replaced by the following:
Marginal note:Minister — terms, conditions and undertakings
527.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security.
536 Subsection 527.5(3) of the Act is replaced by the following:
Marginal note:Representations
(3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
Marginal note:Temporary suspension or amendment
(4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may temporarily suspend or amend any approval granted by the Minister.
Marginal note:Cessation of effect
(5) A temporary suspension or amendment of an approval ceases to have effect on the earlier of
(a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and
(b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect.
537 The Act is amended by adding the following after section 527.5:
Marginal note:Confidential undertaking
527.51 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under subsection 527.4(1) or 527.5(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial institution to which the undertaking relates or could be injurious to national security, the Minister may specify that the information is confidential and shall be treated accordingly.
Marginal note:Prohibition
(2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential information referred to in subsection (1) except in accordance with any terms or conditions that the Minister may specify in the undertaking.
Marginal note:Notice — Committee and Review Agency
(3) If the Minister specifies under subsection (1) that information referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertaking in question is required, notify
(a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
(b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
538 Subsection 530(1) of the Act is replaced by the following:
Marginal note:Appeal to Federal Court
530 (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 396(7), 401(1) or 401.1(1).
1991, c. 46Bank Act
539 The Bank Act is amended by adding the following after section 15:
Marginal note:Policies and procedures — integrity or security
15.1 A bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
540 Paragraphs 160(e) and (f) of the Act are replaced by the following:
(e) a person who is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under section 402.2 or subsection 973.03(4);
(f) a person who is an officer, director or full time employee of an entity that is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under section 402.2 or subsection 973.03(4);
541 The Act is amended by adding the following after section 402.1:
Marginal note:Disposition — threat to integrity or security
402.2 (1) If the Minister is of the opinion that a person’s holding or beneficial ownership of shares or membership shares of a bank poses a threat to the integrity or security of the bank or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to
(a) dispose of any number of shares of the bank held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order; or
(b) dispose of any number of membership shares of the bank held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order.
Marginal note:Suspension of rights
(2) A direction made under subsection (1) may also suspend any of the rights under Part VI attached to the shares referred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b) until the shares or membership shares are disposed of in accordance with the direction.
Marginal note:Representations
(3) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the bank concerned with a reasonable opportunity to make representations.
Marginal note:Temporary direction
(4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares referred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b).
Marginal note:Cessation of effect
(5) A temporary direction ceases to have effect on the earlier of
(a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and
(b) if a direction is made under subsection (1) in respect of the shares or membership shares, the day on which that direction takes effect.
Marginal note:Appeal
(6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days after the day on which the direction was made, appeal the matter in accordance with section 977.
Marginal note:Notice — Committee and Review Agency
(7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify
(a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
(b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
542 Subsection 403(1) of the Act is replaced by the following:
Marginal note:Application to court
403 (1) If a person fails to comply with a direction made under subsection 401.2(7), 402(1) or 402.2(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
543 The Act is amended by adding the following after section 524.2:
Marginal note:Policies and procedures — integrity or security
524.3 An authorized foreign bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada.
544 (1) Subsection 613(1) of the Act is replaced by the following:
Marginal note:Examination of authorized foreign banks
613 (1) The Superintendent, from time to time, but, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), 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 authorized foreign bank that the Superintendent considers to be necessary or expedient to determine whether the authorized foreign bank is complying with the provisions of this Act and whether the authorized foreign bank has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
(2) Section 613 of the Act is amended by adding the following after subsection (1):
Marginal note:Integrity or security
(1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any authorized foreign bank that the Superintendent considers to be necessary or expedient to determine whether the authorized foreign bank has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
(3) Subsection 613(1.1) of the Act is repealed.
545 Section 614.1 of the Act is replaced by the following:
Marginal note:Prudential agreement
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 or establishing adequate policies and procedures to protect it against threats to its integrity or security in relation to its business in Canada.
546 Subsections 615(2) and (3) of the Act are replaced by the following:
Marginal note:Directions — policies and procedures
(1.1) If, in the opinion of the Superintendent, an authorized foreign bank does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada, the Superintendent may direct the authorized foreign bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.
Marginal note:Opportunity for representations
(2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) to an authorized foreign bank or person unless the authorized foreign bank or person 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 Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days.
Page Details
- Date modified: