SOR/2001-399200110

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20196

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BANK ACTManner of Calculation (Foreign Banks) RegulationsP.C.2001-1770 200110

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Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 978a of the Bank Actb, hereby makes the annexed Manner of Calculation (Foreign Banks) Regulations.aS.C. 2001, c. 9, s. 183bS.C. 1991, c. 46Interpretation

Definitions1The following definitions apply in these Regulations.Act means the Bank Act. (Loi)total assets has the same meaning as in subsection 508(5) of the Act. (actif total)total revenue has the same meaning as in subsection 508(5) of the Act. (recettes d’exploitation totales)SOR/2008-162, s. 1; SOR/2010-71, s. 1

Prescribed Manner

Portion of entity’s activities2For the purpose of the definition financial services entity in subsection 507(1) of the Act, the prescribed manner of determining the portion of the activities that an entity engages in that consists of one or more of the activities referred to in paragraphs (a) to (h) of that definition (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the entity that is in respect of the particular activities,Cis the total assets of the entity,Dis the part of the total revenue of the entity that is derived from the particular activities, andEis the total revenue of the entity.SOR/2010-71, s. 2(F)

Portion of entity’s business in Canada — par. 522.05(a) of the Act3For the purpose of paragraph 522.05(a) of the Act, the prescribed manner of determining the portion of the business in Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on in Canada,Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on in Canada,Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on in Canada, andEis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on in Canada.SOR/2010-71, s. 2(F)

Portion of entity’s business outside Canada — par. 522.05(b) of the Act4For the purpose of paragraph 522.05(b) of the Act, the prescribed manner of determining the portion of the business outside Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on outside Canada,Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on outside Canada,Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on outside Canada, andEis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on outside Canada.SOR/2010-71, s. 2(F)

Portion of Canadian entity’s activities — paragraphs 522.09(1)(b) and (2)(b) of the Act5For the purpose of paragraphs 522.09(1)(b) and (2)(b) of the Act, the prescribed manner of determining the portion of the activities a Canadian entity engages in that consists of the activities referred to in either of those paragraphs (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the Canadian entity that is in respect of the particular activities,Cis the total assets of the Canadian entity,Dis the part of the total revenue of the Canadian entity that is derived from the particular activities, andEis the total revenue of the Canadian entity.SOR/2008-162, s. 2; SOR/2010-71, s. 2(F)

Portion of entity’s business in Canada — par. 522.19(1)(a) of the Act6For the purpose of paragraph 522.19(1)(a) of the Act, the prescribed manner of determining the portion of the business in Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on in Canada,Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on in Canada,Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on in Canada, andEis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on in Canada.SOR/2010-71, s. 2(F)

Portion of entity’s business outside Canada — par. 522.19(1)(b) of the Act7For the purpose of paragraph 522.19(1)(b) of the Act, the prescribed manner of determining the portion of the business outside Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as “particular activities”) is to determine it as a percentage in accordance with the formulaA × 100%whereAis the greater of the fraction B/C and the fraction D/E,whereBis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on outside Canada,Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on outside Canada,Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on outside Canada, andEis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on outside Canada.SOR/2010-71, s. 2(F)

Coming into Force

Coming into force*8These Regulations come into force on the day on which section 978 of the Bank Act, as enacted by section 183 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.*[Note: Regulations in force October 24, 2001, see SI/2001-102.]