Financial System Review Act (S.C. 2012, c. 5)
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Assented to 2012-03-29
PART 41991, c. 45TRUST AND LOAN COMPANIES ACT
181. The Act is amended by adding the following after section 527.8:
Exceptions to Generally Accepted Accounting Principles
Marginal note:Calculations — generally accepted accounting principles
527.81 (1) If, as a result of a change to the accounting principles referred to in subsection 313(4) — whether the change is made before or after this section comes into force — the Superintendent considers, given any prudential considerations that he or she considers relevant, that any amount, calculation or valuation under this Act or the regulations is not appropriate, the Superintendent may specify the amount that is to be used or the calculation or valuation that is to be performed instead.
Marginal note:Canada Gazette
(2) The Superintendent shall cause a notice of the specification to be published in the Canada Gazette within 60 days after the day on which the specification has effect.
Marginal note:Five-year limit
(3) The specification ceases to have effect on the day indicated in the notice, which may be no later than five years after the day on which the specification is made.
Marginal note:2007, c. 6, s. 384
182. Subsection 529.2(1) of the Act is replaced by the following:
Marginal note:Application for certain approvals
529.2 (1) An application for the prior written approval of the Minister in respect of paragraph 410(1)(c) or (c.1) or 453(5)(b.1), (c), (d) or (d.1) must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require.
PART 5AMENDMENTS TO OTHER ACTS
R.S., c. B-2Bank of Canada Act
Marginal note:2007, c. 6, s. 394
183. (1) Subsection 22(1.3) of the Bank of Canada Act is replaced by the following:
Marginal note:Time limit for returned payments
(1.21) The Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has made a payment to the Bank under subsection 14.01(1) of that Act if
(a) the amount paid to the Bank was less than $1,000; and
(b) at least 40 years have gone by since the applicable date referred to in subsection 14(2.9) of that Act.
Marginal note:Limitation of Bank’s liability
(1.3) The Bank is not liable in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) if the amount paid to the Bank in respect of the debt, instrument, claim or returned payment was $1,000 or more and at least 100 years have gone by since the payment was made to the Bank.
Marginal note:1991, c. 46, s. 582
(2) Subsection 22(3) of the Act is replaced by the following:
Marginal note:No liability where claims paid — returned payments
(2.1) The Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has paid an amount to the Bank under subsection 14.01(1) of that Act if an amount equal to the amount so paid has been paid by the Bank to a claimant under subsection 14.01(4) of that Act or to the Receiver General under subsection (3).
Marginal note:Amounts to be paid to Receiver General
(3) An amount equal to the amount paid to the Bank in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) shall, within two months after the end of the calendar year in which the applicable 40-year period expired, be paid by the Bank without interest to the Receiver General and the Bank may destroy all records relating to the debt, instrument, claim or returned payment.
Marginal note:2001, c. 9, s. 199; 2007, c. 6, s. 397
184. Section 29 of the Act is replaced by the following:
Marginal note:Weekly financial information
29. (1) The Bank shall, as soon as practicable after the last business day of each week, post on its website financial information about its assets and liabilities.
Marginal note:Monthly balance sheet
(2) The Bank shall, as soon as practicable after the last business day of each month, post on its website its balance sheet as at the close of business on that day. The balance sheet shall set out information regarding the Bank’s investments in securities issued or guaranteed by the Government of Canada.
R.S., c. C-3Canada Deposit Insurance Corporation Act
Marginal note:R.S., c. 18 (3rd Supp.), s. 47(2)
185. (1) The definition “receiver” in section 2 of the English version of the Canada Deposit Insurance Corporation Act is replaced by the following:
“receiver”
« séquestre »
“receiver” includes a receiver-manager and a sequestrator;
(2) Section 2 of the Act is amended by adding the following in alphabetical order:
“returned payment”
« paiement retourné »
“returned payment” means any portion of a payment made by the Corporation under subsection 14(2) or (2.1) that is either returned to the Corporation or that otherwise remains under its control;
Marginal note:2009, c. 2, s. 236(2)
186. (1) The description of A in subsection 10.1(3.1) of the Act is replaced by the following:
- A
- is $15,000,000,000; and
Marginal note:2009, c. 2, s. 236(2)
(2) The description of D in subsection 10.1(3.2) of the Act is replaced by the following:
- D
- is the total amount of deposits insured by the Corporation on April 30, 2008.
Marginal note:2009, c. 2, s 236(2)
(3) Subsection 10.1(3.4) of the Act is replaced by the following:
Marginal note:No change
(3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined under subsection (3.1) for the current year is less than the amount published under subsection (3.6) for the previous year.
187. Section 11 of the Act is amended by adding the following after subsection (2.1):
Marginal note:Subsection 5(1) of the Statutory Instruments Act
(2.2) If a by-law requires approval in writing by the Minister under this Act in order to be effective, then, for the purposes of subsection 5(1) of the Statutory Instruments Act, the by-law is deemed to be made on the day on which the Corporation receives that approval.
Marginal note:1996, c. 6, s. 26(1)
188. (1) Paragraph 14(2.1)(c) of the French version of the Act is replaced by the following:
c) l’institution fédérale membre est visée par le décret pris en application du paragraphe 39.13(1).
(2) Section 14 of the Act is amended by adding the following after subsection (2.9):
Marginal note:Posting requirement
(2.91) For the purposes of calculating the payment to be made by the Corporation in respect of any deposit insured by deposit insurance, the deposit, other than accrued interest, must be posted in the member institution’s records in accordance with the member institution’s regular transaction posting process as of the applicable date referred to in subsection (2.9).
Marginal note:R.S., c. 18 (3rd Supp.), s. 52(2)
(3) Subsection 14(4.1) of the Act is replaced by the following:
Marginal note:Subrogation — returned payment
(4.01) In the case of a returned payment, at the expiry of one year from the applicable date referred to in subsection (2.9), the Corporation is subrogated, to the extent of the amount of the returned payment, to all the rights and interests of the depositor and may maintain an action in respect of those rights and interests in the name of the depositor or in the name of the Corporation.
Marginal note:Priority
(4.1) If the Corporation is subrogated to the rights and interests of a depositor under subsection (4) or (4.01) in respect of any deposit with a member institution that is being wound up, the Corporation ranks,
(a) to the extent that the payment was made under subsection (2) or (2.1), including in the case of a returned payment, equally with the depositor in respect of their deposit; and
(b) to the extent that the payment includes any interest paid under subsection (2.4), equally with the depositor in respect of interest accruing and payable on their deposit after the date of the making of the winding-up order.
189. The Act is amended by adding the following after section 14:
Marginal note:Payment to the Bank of Canada
14.01 (1) The Corporation shall pay to the Bank of Canada an amount equal to a returned payment within three months after the expiry of a 10-year period from the applicable date referred to in subsection 14(2.9), and payment to the Bank of Canada accordingly discharges the Corporation from all liability in respect of the returned payment.
Marginal note:Notice
(2) The Corporation shall mail to each person to whom a returned payment remains payable, at the person’s address in so far as the address is known to the Corporation, a notice that the returned payment remains unpaid and that payment of an amount equal to the returned payment will be paid by the Corporation to the Bank of Canada. The notice must be sent at least six months before the date by which payment is to be made by the Corporation to the Bank of Canada and must also include the mailing address and websites where information can be obtained on how to claim the returned payment from the Corporation before payment is made by the Corporation to the Bank of Canada.
Marginal note:Provision of information
(3) The Corporation shall, on making a payment under subsection (1), provide to the Bank of Canada the amount of the returned payment and, in so far as it is known to the Corporation, any information that the Bank of Canada determines is necessary to verify the identity of the depositor who is entitled to the returned payment, including
(a) the depositor’s name;
(b) the depositor’s address;
(c) information relating to the depositor’s pieces of identification; and
(d) information relating to another person’s authority to act on behalf of the depositor.
Marginal note:Payment to claimant
(4) Subject to section 22 of the Bank of Canada Act, if payment has been made to the Bank of Canada under subsection (1) in respect of any returned payment, and if payment is demanded from the Bank of Canada by the person who, but for that subsection, would be entitled to receive the returned payment, the Bank of Canada is liable to pay an amount equal to the amount so paid to it to the claimant.
Marginal note:Enforcing liability
(5) The liability of the Bank of Canada under subsection (4) may be enforced by action or other civil proceeding against the Bank of Canada in any court of competent jurisdiction.
Marginal note:2007, c. 6, s. 404
190. Paragraph 17(2)(b) of the Act is replaced by the following:
(b) on the day on which the amendment takes effect, any existing cancellation of the institution’s policy of deposit insurance under paragraph 33(1)(b) or (c) or subsection 33(2) is revoked; and
Marginal note:1996, c. 6, s. 27
191. (1) Subsection 21(1) of the Act is replaced by the following:
Marginal note:Assessment and collection of premiums
21. (1) Subject to subsection (4), the Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount determined under the by-laws.
(2) Subsection 21(2) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) fixing the minimum amount of, or providing the manner for determining the minimum amount of, the annual premium.
Marginal note:1996, c. 6, s. 27
(3) Subsection 21(4) of the Act is replaced by the following:
Marginal note:Annual premium
(4) The annual premium for a member institution shall be no greater than one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
Marginal note:1996, c. 6, s. 29; 2001, c. 9, s. 207
192. Subsection 23(1) of the Act is replaced by the following:
Marginal note:Calculation of first premium
23. (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the annual premium for that member institution determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365.
Marginal note:R.S., c. 18 (3rd Supp.), s. 62
193. The portion of subsection 30(2) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Presentation of report to directors
(2) The chief executive officer or chairperson of the board of directors of a member institution to whom a report has been sent or delivered under subsection (1) shall, within 15 days after the receipt of the report, cause
194. Subsection 33(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) has not begun to accept deposits within a period of two years beginning on the day on which it became a member institution.
Marginal note:2007, c. 6, s. 416(2)
195. Subsection 34(5) of the Act is replaced by the following:
Marginal note:Amendment of order
(5) If the policy of deposit insurance of a federal member institution is cancelled by the Corporation under paragraph 33(1)(b) or (c) or subsection 33(2), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business to prohibit the institution from accepting deposits in Canada.
196. Section 39.13 of the Act is amended by adding the following after subsection (5):
Marginal note:Non-liability — environmental matters
(5.1) Without limiting the generality of subsection (5) and despite anything in federal or provincial law, the Corporation, as receiver, is not liable in that capacity for any environmental condition that arose or environmental damage that occurred
(a) before the Corporation’s appointment as receiver; or
(b) after the Corporation’s appointment as receiver unless it is established that the condition arose or the damage occurred as a result of the Corporation’s gross negligence or wilful misconduct or, in Quebec, the Corporation’s gross or intentional fault.
Marginal note:Reports, etc., still required
(5.2) Nothing in subsection (5.1) exempts the Corporation, as receiver, from any duty to report or make disclosure imposed by a law referred to in that subsection.
Marginal note:Non-liability — certain orders
(5.3) Without limiting the generality of subsection (5) and despite anything in federal or provincial law but subject to subsection (5.2), if an order is made that has the effect of requiring the Corporation, as receiver, to remedy any environmental condition or environmental damage affecting property involved in the receivership, the Corporation, as receiver, is not liable for failure to comply with the order, and is not liable for any costs that are or would be incurred by any person in carrying out the terms of the order,
(a) if, within the time that is specified in the order, or within 10 days after the appointment of the Corporation as receiver if the order is in effect when the Corporation is appointed as receiver, the Corporation, as receiver,
(i) complies with the order, or
(ii) on notice to the person who issued the order, abandons, disposes of or otherwise releases any interest in any real property, or any right in any immovable, affected by the condition or damage; or
(b) if the Corporation, as receiver, had, before the order was made, abandoned, disposed of or otherwise released any interest in any real property, or any right in any immovable, affected by the condition or damage.
Marginal note:Non-liability — employees
(5.4) Without limiting the generality of subsection (5) and despite anything in federal or provincial law, the Corporation, as receiver, is not liable in respect of a liability, including one as a successor employer,
(a) that is in respect of the employees or former employees of the federal member institution or a predecessor of the federal member institution or in respect of a pension plan for the benefit of those employees or former employees; and
(b) that existed before the Corporation is appointed as receiver or that is calculated by reference to a period before the Corporation’s appointment.
Marginal note:Liability of other successor employers
(5.5) Subsection (5.4) does not affect the liability of a successor employer other than the Corporation, as receiver.
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