Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

• 312 (1) Section 453 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) to (6), Part XI and the regulations made under paragraphs (2.2)(b) and (c), a company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a company is permitted to engage in under paragraphs 409(2)(b) to (d).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a company may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 453(3)(f)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 451(2), paragraph 451(3)(b) or (c) or subsection 451(4); or

• (3) Subsection 453(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (5)(d) and (d.1).

• (4) Paragraph 453(7)(a) of the Act is replaced by the following:

  • (a) the company is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);

313 The Act is amended by adding the following after section 453:

314 Paragraph 483(1)(c) of the Act is replaced by the following:

315 Subsection 529.2(1) of the Act is replaced by the following:

1991, c. 46Bank Act

• 316 (1) Paragraphs 410(1)(c) and (c.1) of the Bank Act are replaced by the following:

  • (b.1) subject to sections 416 and 417 and the regulations, engage in any activity that relates to the provision of financial services by the bank or any of its affiliates;

  • (c) subject to the regulations, engage in any of the following activities:

    • (i) collecting, manipulating and transmitting information, and

    • (ii) designing, developing, manufacturing, selling and otherwise dealing with technology, if those activities relate to

      • (A) an activity referred to in this subsection that is engaged in by the bank or any of its affiliates, or

      • (B) the provision of financial services by any other entity,

• (2) Subsection 410(1) of the Act is amended by striking out “and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following after paragraph (g):

  • (h) provide identification, authentication or verification services.

• (3) Paragraph 410(3)(a) of the Act is replaced by the following:

  • (a) respecting what a bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(b.1), (c) and (c.2);

• (4) Subparagraph 410(3)(b)(iii) of the English version of the Act is replaced by the following:

  • (iii) the carrying on of the activities referred to in paragraphs (1)(b.1), (c) and (c.2); and

• (5) Paragraph 410(3)(c) of the Act is replaced by the following:

  • (c) respecting the circumstances in which a bank may engage in the activities referred to in paragraphs (1)(b.1) and (c), including the circumstances in which banks may collect, manipulate and transmit information under subparagraph (1)(c)(i).

317 Section 411 of the Act is replaced by the following:

• 318 (1) Section 468 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) to (6), Part XI and the regulations made under paragraphs (2.2)(b) and (c), a bank may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a bank may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a bank may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 468(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the bank, the bank itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 466(2), paragraph 466(3)(b) or (c) or subsection 466(4); or

• (3) Subsection 468(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (d) and (d.1).

• (4) Paragraph 468(7)(a) of the Act is replaced by the following:

  • (a) the bank is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the bank would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);

319 The Act is amended by adding the following after section 468:

320 Paragraph 495(1)(c) of the Act is replaced by the following:

321 Section 522.08 of the Act is amended by adding the following after subsection (1):

322 The Act is amended by adding the following after section 522.08:

323 Paragraphs 522.22(1)(d) and (d.1) of the Act are repealed.

• 324 (1) Paragraphs 539(1)(b.1) and (b.2) of the Act are replaced by the following:

  • (b.1) subject to sections 549 and 550 and the regulations, engage in any activity that relates to the provision of financial services by the authorized foreign bank or any of its affiliates;

  • (b.2) subject to the regulations, engage in any of the following activities:

    • (i) collecting, manipulating and transmitting information, and

    • (ii) designing, developing, manufacturing, selling and otherwise dealing with technology, if those activities relate to

      • (A) an activity referred to in this subsection that is engaged in by the authorized foreign bank or any of its affiliates, or

      • (B) the provision of financial services by any other entity,

• (2) Subsection 539(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):

  • (g) provide identification, authentication or verification services.

• (3) Paragraph 539(3)(c) of the Act is replaced by the following:

  • (c) respecting the circumstances in which an authorized foreign bank may engage in an activity referred to in paragraphs (1)(b.1) and (b.2), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(b.2)(i).

325 Section 543 of the Act is replaced by the following:

• 326 (1) Section 930 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) to (6) and the regulations made under paragraphs (2.2)(a) and (b), a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity that a bank may acquire control of, or acquire or increase a substantial investment in, under subsection 468(2.1).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a bank holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (b) respecting the circumstances in which a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 930(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the bank holding company, a bank would be permitted to acquire a substantial investment in the other entity under subsection 466(2), paragraph 466(3)(b) or (c) or subsection 466(4) or 468(1), (2) or (2.1); or

• (3) Subsection 930(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (5)(d) and (d.1).

• (4) Paragraph 930(7)(a) of the Act is replaced by the following:

  • (a) the bank holding company is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the bank holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);