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Vol. 133, No. 50 — December 11, 1999
By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
Statutory Authority
Canada Deposit Insurance Corporation Act
Sponsoring Agency
Canada Deposit Insurance Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
Description
Subsection 21(2) of the Canada Deposit Insurance Corporation Act authorizes the Board of Directors of the Canada Deposit Insurance Corporation ("CDIC") to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors CDIC will consider in classifying members into categories, establishing the procedures CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of the annual premium applicable to each category.
The Canada Deposit Insurance Corporation Differential Premiums By-law ("the By-law") came into force on March 31, 1999. It established the system of classifying member institutions into four categories, set out the quantitative factors and the qualitative factors and criteria on which the categorization is based and established procedures for classification.
Member institutions have now had the experience of filing the Reporting Form and supporting documents and being classified in a premium classification by CDIC. CDIC has evaluated the functioning of the By-law and consulted with certain member institutions and their associations about their experience with the new system. As a result, CDIC is recommending both substantive and technical amendments to the By-law. The proposed amendments are contained in the draft By-law amending the Canada Deposit Insurance Corporation Differential Premiums By-law ("the amending By-law"). The proposed amendments will not change any factor or criteria used in the classification of member institutions.
The proposed substantive amendments will affect how certain quantitative factors are calculated and the type of information that will be taken into account in the calculation. These amendments are intended to clarify the application of the By-law and harmonize, in part, reporting requirements under the By-law with the way member institutions currently record information. These amendments are as follows:
— Return on Risk-Weighted Capital: Member institutions that file the Market Risk Return of the Capital Adequacy Return would be permitted to use risk-weighted assets as set out for that Return, instead of as set out for the CAR 1 form, for the calculation of this factor.
— Efficiency Ratio: Members would use net interest income before charge for impairment, rather than after that charge. Members could use a taxable equivalent basis to calculate denominator amounts for section 5.2 and 5.3. The score table would be amended to cover the situation when members have a negative number as a result of the calculation. There will be a consequent change to the third line of the scoring box.
— Net Impaired Assets including Net Unrealized Losses on Securities to Total Capital: The instructions at section 6.2 would be clarified, as would the instructions for the calculation of Net Unrealized Losses on Securities at section 6.3.
— Aggregate Counterparty Asset Concentration: The definition of "Group of Associated Persons" would will be simplified to eliminate subsection (c), "two or more of those persons have common directors." Member institutions do not record this information and the requirement is not necessary.
— Real Estate Asset Concentration: The reporting requirement would be harmonized with the current record-keeping practice of member institutions and the filing requirements of the federal regulator by elimination of the word "owner-occupied."
— Industry Sector Concentration Ratio: The proposed amendment would exclude trading securities from the industry sector concentration elements. This is likely to improve the results of a member institution with a large trading book because it will reduce the chances of having a concentration in any given industrial sector.
The technical amendments correct clerical errors and omissions in the By-law. These amendments are summarized in the following table:
| Section requiring Amendment | Amendment Required |
|---|---|
| Subsection 4(2), element E in French only. | To clarify the element and eliminate a discrepancy between the English and French texts. |
| Subsection 4(2), element G in English and French. | To eliminate an overlap between elements E and G, by amending G to read: "the
number of days during the period beginning on the day after the Corporation receives the declaration..." |
| Paragraph 6(1)(a) in French only. | To add a missing "s" in the spelling of alinéas in the last line of the paragraph. |
| Part 2 of Schedule 2, section 3, third paragraph, under the heading "3. Mean Adjusted Net Income Volatility" in English only. | To change "3,1" to "3.1". |
| Part 2 of Schedule 2, section 3, second paragraph before the scoring grid in English only. | To correct the spelling of amalgamation. |
| Part 2 of Schedule 2, section 5 in English and French. | To change "Other Income" to "Non-interest income" and to change reference in section 5.3 from line 21 to line 22 in the Consolidated Statement of Income. Consequent changes to the formula. |
| Schedule 5 in English only. | To add scores — 9 at number 3 and 6 at number 8. |
| Schedule 5, paragraph 9(b), column 1 in French only. | To eliminate the repetition of the last three words. |
Alternatives
Because the legislation requires that the differential premium system be implemented by way of by-law, amendments to the system must also be made by by-law. There are no alternatives available.
Benefits and Costs
The implementation of the amending By-law will harmonize, for certain quantitative factors, the filing requirements of the differential premiums system with those of the federal regulator and with the record-keeping practices of member institutions. Instructions will be clarified and omissions and clerical errors in the By-law corrected. The cost to member institutions of filing the Reporting Form should be reduced because of the harmonization, in part, of filing requirements with those of the federal regulator and with the record-keeping practices of member institutions.
Consultation
The amending By-law has been the subject of meetings between CDIC and the Canadian Bankers Association and the Trust and Loan Companies Association. Many of the substantive amendments contained in the By-law were requested by member institutions. CDIC has also sent a letter setting out the proposed amendments, explaining them and requesting comments to all member institutions.
Compliance and Enforcement
The amending By-law does not involve any compliance or enforcement issues.
Contact
Reg Neale, Director of Insurance Rating and Information, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5, (613) 943-0613 (Telephone), (613) 996-6095 (Facsimile), rneale@cdic.ca (Electronic mail).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Board of Directors of Canada Deposit Insurance Corporation, pursuant to subsection 21(2) of the Canada Deposit Insurance Corporation Act, proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.
Any interested person may make representations concerning the proposed Regulation within 30 days after the date of publication of this notice. All such representations must be addressed to: Reg Neale, Director of Insurance Rating and Information, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5, (613) 943-0613 (Telephone), (613) 996-6095 (Facsimile), rneale@cdic.ca (E-mail) and cite the Canada Gazette, Part I, and the date of this notice.
Ottawa, December 2, 1999
J. P. SABOURIN
President and Chief Executive Officer
BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION DIFFERENTIAL PREMIUMS BY-LAW
AMENDMENTS
1. (1) The description of E in subsection 4(2) of the French version of the Canada Deposit Insurance Corporation Differential Premiums By-law (see footnote 1) is replaced by the following:
E le nombre de jours compris dans la période commençant le 1er mai de l'année de déclaration et se terminant le jour où la Société reçoit de l'institution membre les documents visés à l'alinéa 7(2)b), au paragraphe 15(1) ou à l'article 16, selon le cas;
(2) The description of G in subsection 4(2) of the By-law is replaced by the following:
G is the number of days during the period beginning on the day after the day that the Corporation receives the declaration referred to in paragraph 7(2)(b) or the documents required by subsection 15(1) or section 16, as the case may be, from the member institution and ending on April 30 of the year following the filing year referred to in E.
2. Paragraph 6(1)(a) of the French version of the By-law is replaced by the following:
a) dans le cas où elle se trouve dans la situation décrite à l'alinéa 12(1)a), des états financiers vérifiés et soit un formulaire de déclaration révisé soit une attestation portant que les états financiers vérifiés confirment les renseignements inscrits sur le formulaire de déclaration transmis auparavant et qu'aucune modification de celui-ci ou des documents et relevés visés aux alinéas 15(1)c) à e) n'est requise;
3. The second paragraph under the heading "Elements" in section 2 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is amended by striking out the word "and" at the end of paragraph (a), by adding the word "and" at the end of paragraph (b) and by adding the following after paragraph (b):
(c) if the member institution is required by section 15 or 16 of the Canada Deposit Insurance Corporation Differential Premiums By-Law to submit the Capital Adequacy Return - Market Risk (CAR — Market Risk), Reporting Manual, "Capital Adequacy - Market Risk" tab, that return completed in accordance with that Manual and Part II of Guideline A of the Guidelines as of the fiscal year ending in the year preceding the filing year.
4. The paragraph under the heading "2.2 Total Risk-weighted Assets as of the End of the Preceding Fiscal Year" in section 2 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:
If the member institution is required by section 15 or 16 of the Canada Deposit Insurance Corporation Differential Premiums By-Law to submit the CAR - Market Risk return, the total risk-weighted assets corresponds to the total adjusted risk-weighted assets as set out for item "J" of that return.
If the member institution is not required to do so, it must indicate the total risk-weighted assets as set out for item "C" of the CAR 1 form.
5. The third paragraph under the heading "3. MEAN ADJUSTED NET INCOME VOLATILITY" in section 3 of the Reporting Form set out in Part 2 of Schedule 2 to the English version of the By-law is amended by replacing the expression "for elements 3, 3,1, 3.2 and 3.8," with the expression "for elements 3, 3.1, 3.2 and 3.8,".
6. The second paragraph before the scoring grid in section 3 of the Reporting Form set out in Part 2 of Schedule 2 to the English version of the By-law is amended by replacing the word "almagamation" with the word "amalgamation".
7. Section 5 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:
5. EFFICIENCY RATIO (%)
Formula:
Complete the following:
Elements
Use the instructions below to arrive at the elements of the formula.
Refer to the Consolidated Statement of Income, Reporting Manual, "Income Statement" Tab, completed in accordance with that Manual for the fiscal year ending in the year preceding the filing year.
5.1 Total Non-Interest Expenses
Indicate the total non-interest expenses, as set out for item 27 of the Consolidated Statement of Income.
5.2 Net Interest Income
Indicate the net interest income by completing the following:
Net interest income as set out for item 15 of the Consolidated Statement of Income ___________
Add taxable equivalent adjustment (if any) ___________
Net interest income on a taxable equivalent basis (insert as element 5.2 of the formula) ___________
5.3 Non-Interest Income
Indicate the non-interest income by completing the following:
Non-interest income as set out for item 22 of the Consolidated Statement of Income ___________
Add taxable equivalent adjustment (if any) ___________
Non-interest income on a taxable equivalent basis (insert as element 5.3 of the formula) ___________
Score
Use the scoring grid below to determine the member institution's score.
Range of results
Score
Efficiency ratio (5) is ≥ or ≤ 60% - 5
Efficiency ratio (5) is > 60% and ≥ 80% - 3
Efficiency ratio (5) is > 80% or a negative number - 0
5.4 Efficiency ratio score
8. The paragraph under the heading "6.1 Net Impaired On-Balance Sheet Assets" in section 6 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:
Indicate the net impaired on-balance sheet assets as set out for the total of the column "Carrying Amount" in the Return of Impaired Assets. If the result is negative, report "zero".
9. The paragraph under the heading "6.3 Net Unrealized Losses on Securities" in section 6 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:
Calculate the net unrealized losses on securities by subtracting the total of the "Market Value" column from the total of the "Book value" column as set out, respectively, for the item "Total Investment and Trading Account Securities" in Section IV of the Securities Report. If the result is negative (i.e., if there is a net unrealized gain on securities), report "zero". The market value of private placements or other securities with no publicly quoted market price must be determined in accordance with section 3860 ("Fair value") of the Handbook of the Canadian Institute of Chartered Accountants.
10. Paragraph (c) under the heading "Group of Associated Persons" in section 7 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is repealed.
11. The heading "Single Family Owner-Occupied Dwelling Properties Mortgage Loans" in section 8 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law and the paragraph under that heading are replaced by the following:
Single Family Dwelling Properties Mortgage Loans
Mortgage loans of this type, secured by properties located in and out of Canada, are to be classified in accordance with the Reporting Manual.
Calculate the total mortgage loans of this type by adding together
(a) for those secured by properties located in Canada, the total of the amounts set out for item 1(a)(i) (Single Detached) and item 1(a)(ii)(A) (Condominiums) in the Columns "Insured Gross Mortgage Loans Outstanding" and "Uninsured Gross Mortgage Loans Outstanding", respectively, in the first table of Section III of the Mortgage Loans Report, before deducting any allowance for impairment; and
(b) for those secured by properties located out of Canada, the total amount of such mortgage loans, calculated on the same basis as the mortgage loans in paragraph (a).
12. The item "Single Family Owner-occupied Dwelling Properties Mortgage Loans" in column A of Table 8 to section 8 of the Reporting Form set out in Part 2 of Schedule 2 to the By-Law is replaced by the following:
Single Family Dwelling Properties
Mortgage Loans
13. Section 9 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is amended by adding the following after the paragraph under the heading "Securities":
Report only securities held in the Investment Account for each of the above items.
14. Schedule 5 to the English version of the By-law is amended by adding the score "9" in column 2 opposite subparagraph 3(c)(ii).
15. Schedule 5 to the English version of the By-law is amended by adding the score "6" in column 2 opposite subparagraph 8(c)(ii).
16. Paragraph 9(b) in column 1 of Schedule 5 to the French version of the By-law is replaced by the following:
Article |
Colonne 1 Description |
|---|---|
| 9. | b) sa situation correspond à celle décrite à l'article 8, mais, au 29 avril de l'année de déclaration, elle n'avait pas rectifié un ou plusieurs manquements relevés durant la période commençant le 30 avril de la deuxième année précédant l'année de déclaration et se terminant le 29 avril de l'année précédant l'année de déclaration. |
COMING INTO FORCE
17. This By-law comes into force on the day on which it is registered.
[50-1-o]
Regulations Amending the Licensing and Arbitration Regulations
Statutory Authority
Canada Agricultural Products Act
Sponsoring Agency
Canadian Food Inspection Agency
REGULATORY IMPACT ANALYSIS STATEMENT
Description
Rules of procedure have been developed by the Board of Arbitration pursuant to subsection 8(3) of the Canada Agricultural Products Act (CAP Act). These rules will assist the Board to deal with complaints in a fair and expeditious manner. The Board of Arbitration is established under section 4 of the CAP Act.
The Board of Arbitration (the Board) is mandated to hear complaints from produce dealers against other dealers who are licensed under the CAP Act. Complaints relate to the failure of dealers to comply with the Fresh Fruit and Vegetable Regulations or the Licensing and Arbitration Regulations in the marketing of fresh fruit and vegetables. The Board is empowered to dismiss complaints and to make orders for restitution, as the case may be. The Canadian fresh fruit and vegetable wholesale sector relies heavily on the arbitration process to resolve trade disputes.
In accordance with subsection 8(3) of the Act, the Board may, with the approval of the Governor in Council, make rules governing the practices and procedures of the Board with respect to hearings, the time and manner in which applications and notices must be made and given, and the work of the Board in general.
In addition to making new rules, the Licensing and Arbitration Regulations have been amended to make these Regulations consistent with the new rules. These include repealing Part II of the Licensing and Arbitration Regulations as well as repealing several definitions (e.g. "claimant", "counsel" and "defendant") which are now found in the new rules of the Board of Arbitration. Several other existing sections of the Licensing and Arbitration Regulations are consolidated under Part I .1 of that regulation.
Rules of practice and procedure for the arbitration and review of disputes were included in the Licensing and Arbitration Regulations when they were revised in 1984 under the Canada Agricultural Products Standards Act (CAPS Act). The CAPS Act was replaced by the current CAP Act in 1988, at which time the power to make the mentioned rules as regulations of the Governor in Council was replaced by the current specific authority of the Board.
The new rules have been written in plain language.
Alternatives
With the authority to make rules of procedure having changed from the Governor in Council to the Board of Arbitration, the existing rules found in the Licencing and Arbitration Regulations, which were made as regulations of the Governor in Council, were no longer mandatory. Since it is necessary to have definitive rules for the effective operation of the Board of Arbitration, it is necessary to implement these new rules of procedure in the manner prescribed by the CAP Act. No alternatives were considered acceptable.
Benefits and Costs
Benefits
These new rules are made in accordance with the statutory authority of the CAP Act and replace outdated rules made under the Licensing and Arbitration Regulations. These rules will permit the Board of Arbitration to continue to operate effectively to settle trade disputes in a fair and equitable manner.
Costs
The only costs are those incidental to the regulatory process.
This amendment has no impact on the year 2000 computer issue.
Consultation
The rules of procedure were drafted by members of the Board of Arbitration under the direction of legal counsel, and in consultation with the Canadian Produce Marketing Association and the Canadian Horticultural Council which represent the fresh fruit and vegetable sector, and with officials of the Canadian Food Inspection Agency.
Compliance and Enforcement
The new rules do not raise any compliance or enforcement issues.
Contact
K. Bruce, National Program Manager, Fresh Plant Products Section, Food of Plant Origin Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, (613) 225-2342 (Telephone), (613) 228-6632 (Facsimile), brucek@em. agr.ca (Electronic mail).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to subsection 9(1) and section 32 of the Canada Agricultural Products Act (see footnote a), proposes to make the annexed Regulations Amending the Licensing and Arbitration Regulations.
Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to A. Goldrosen, Innovation and Regulatory Strategies Division, Canadian Food Inspection Agency, 59 Camelot Dr., Nepean, Ontario, K1A 0Y9. (Tel.: (613) 225-2342; Fax: (613) 228-6653; E-Mail: agoldrosen@em.agr.ca)
Ottawa, December 2, 1999
MARC O'SULLIVAN
Assistant Clerk of the Privy Council
REGULATIONS AMENDING THE LICENSING AND ARBITRATION REGULATIONS
AMENDMENTS
1. Part I.1(see footnote 2) of the Licensing and Arbitration Regulations(see footnote 3) is replaced by the following:
PART I.1
COMPLAINTS FILED WITH THE BOARD
20.1 The time within which a complaint may be filed with the Board under subsection 9(1) of the Act for an alleged failure to comply with a regulation is nine months after the date of the alleged failure to comply.
20.2 (1) The fee that is payable for the filing of a complaint with the Board under subsection 9(1) of the Act is $400.
(2) The fee that is payable for a hearing if a party or counsel for a party appears in person before the Board is $800.
2. Paragraph 31(1)(b) of the Regulations is repealed.
3. Paragraph 40(1)(b) of the Regulations is repealed.
COMING INTO FORCE
4. These Regulations come into force on the day on which they are registered.
[50-1-o]
Rules of the Board of Arbitration (Agriculture and Agri-Food)
Statutory Authority
Canada Agricultural Products Act
Sponsoring Agency
Canadian Food Inspection Agency
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Regulations Amending the Licensing and Arbitration Regulations.
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to subsection 8(3)(see footnote b) of the Canada Agricultural Products Act(see footnote c), proposes to make the annexed Rules of the Board of Arbitration (Agriculture and Agri-Food).
Interested persons may make representations with respect to the proposed Rules within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to A. Goldrosen, Innovation and Regulatory Strategies Division, Canadian Food Inspection Agency, 59 Camelot Dr., Nepean, Ontario, K1A 0Y9. (Tel: (613) 225-2342; Fax: (613) 228-6653; E-Mail: agoldrosen@em.agr.ca)
Ottawa, December 2, 1999
MARC O'SULLIVAN
Assistant Clerk of the Privy Council
| definition | RULES OF THE BOARD OF ARBITRATION (AGRICULTURE AND AGRI-FOOD) |
|---|---|
| INTERPRETATION | |
| Definitions | |
| 1. (1) The definitions in this section apply in these Rules. | |
| "Act" « Loi » |
"Act" means the Canada Agricultural Products Act. |
| "complainant" « plaignant » |
"complainant" means a person who files a complaint under subsection 9(1) of the Act. |
| "defendant" « défendeur » |
"defendant" means a person against whom a complaint is filed under subsection 9(1) of the Act. |
| "party" « partie » |
"party" means a complainant, a defendant or an intervenor. |
| "Secretary" « secrétaire » |
"Secretary" means the Secretary of the Board. |
Interpretation |
|
| (2) These Rules are to be liberally construed in order to permit the fairest, least expensive and most expeditious way of resolving complaints. | |
| RULES OF GENERAL APPLICATION | |
| Procedural matters not provided for | 2. If any question of procedure arises during a proceeding that is not covered, or not fully covered, in these Rules, the Board must decide the question in a manner that is consistent with these Rules. |
| Unfairness | 3. If the application of any of these Rules would cause unfairness to a party during the complaint process, the Board may waive compliance with that rule. |
| Technical defects | 4. A defect in form or a technical irregularity may be overlooked by the Board. |
| Calculating periods | 5. In calculating periods under these Rules, all days must be counted except that, if the time ends on a Saturday, Sunday or other statutory holiday, the time must be extended until the next business day. |
| Extension of time limits | 6. The Board may extend the time limits fixed in these Rules either before or after the end of the time limits fixed. |
| Public nature of filed documents | 7. (1) A document filed with the Board by a party must be treated as a public document unless the party requests that the document be treated as confidential. |
| Request for confidential treatment | (2) Reasons must be given for the request that a document be given confidential treatment and, if it is alleged that disclosure would cause harm to the party, the reasons must include details of the nature and extent of the harm. |
| Documents to be in duplicate | 8. (1) Any documents sent to the Board must be sent in duplicate. |
| Submitting documents to the Board | (2) All documents required to be submitted to the Board must be submitted by hand or by mail, registered mail, courier or facsimile. |
| Faxes sent to the Board | (3) The original and a copy of any document sent by facsimile must be sent by mail without delay after the facsimile transmission. |
| Filed information to be sent to parties | 9. The Board is responsible for ensuring that copies of all documents submitted to it by a party are sent to the other parties. |
| Communications by the Board | 10. Written communications by the Board may be delivered by hand or sent by registered mail, courier or facsimile. |
| Change of address or fax number | 11. A party must without delay notify the Board of a change of facsimile number or address. |
| Teleconference | 12. The Board may meet by teleconference for all purposes except for conducting hearings. |
| Representation of parties | 13. A party may be represented by counsel or by an agent authorized in writing. |
| In camera hearings | 14. (1) A hearing before the Board may, on the request of any complainant or defendant, be held in camera if that party establishes to the satisfaction of the Board that the circumstances of the case so require. |
| Exclusion of witnesses | (2) The Board may order a witness at a hearing to be excluded from the hearing until called to give evidence. |
| Taking notice | 15. The Board may take notice of any matter in order to expedite any proceeding. |
| Impartiality of Board member | 16. (1) If a party is of the opinion that a member of the Board is not in a position to act impartially, that party must without delay notify the Board in writing, stating the reason for that opinion. |
| Exclusion of Board member | (2) If the Board is of the opinion that the reason given by that party is valid, the Board must exclude the member from consideration of the complaint. |
| Conflict of interest | 17. If the Board is of the opinion that a member of the Board is in a conflict of interest in relation to a complaint, the Board must exclude the member from consideration of the complaint. |
COMPLAINT |
|
| Filing complaint | 18. A complaint must be filed with the Secretary together with copies of all relevant documents and a statement as to whether or not the complainant requests that a hearing be held. |
| Complaint to be signed | 19. The complaint must be signed by the complainant or the complainant's counsel or agent. If an agent signs the complaint, a copy of the complainant's written authorization of the agent must be filed with the complaint. |
| Contents of complaint | 20. The complaint must contain the following information: (a) a precise statement of the facts and the grounds
on which the complaint is based and, if possible, stating the provision
of the regulations made under the Act that the defendant allegedly
failed to comply with; |
| Additional information | 21. (1) The Secretary, after reviewing the complaint and all supporting documentation, may require the complainant to file additional information within the period fixed by the Secretary. |
| Consequence of not providing information | (2) If the complainant does not provide the additional information requested by the Secretary within the period fixed by the Secretary and fails to provide a reasonable excuse for the non-compliance, the Board may proceed with the complaint based on the information already filed with it. |
| Inappropriate complaints | 22. If the Board is of the opinion that the complaint on its face is frivolous or vexatious or does not disclose a valid basis, the Board must declare the complaint inappropriate for consideration by the Board and so advise the complainant. |
| Notification of defendant | 23. Unless the complaint is declared inappropriate for consideration by the Board, the Secretary must send to the defendant a copy of the complaint and copies of all documents submitted with it. |
| DISPUTING THE COMPLAINT | |
| Filing a defence | 24. (1) Within 30 days after the date on which the Secretary sends a copy of the complaint to the defendant, the defendant may file a defence with the Secretary. |
| Documents to be filed | (2) The defence must be accompanied by copies of all relevant documents not already filed by the complainant and a statement as to whether or not the defendant requests that a hearing be held. |
| Contents of defence | 25. The defence must contain (a) a precise statement of the facts that constitute
the grounds of the defence; and |
| Filing a counterclaim | 26. (1) If the complainant is a dealer licensed under the Act, the defendant may also, within 30 days after the date on which the Secretary sends a copy of the complaint to the defendant, file a counterclaim against the complainant. |
| Documents to be filed | (2) The counterclaim must be accompanied by copies of all relevant documents not already filed by the complainant or filed by the defendant in support of the defence and a statement as to whether or not the defendant requests that a hearing be held. |
| Contents of counterclaim | 27. A counterclaim must contain the same information that is required for a complaint. |
| Defence and counterclaim to be signed | 28. The defence and any counterclaim must be signed by the defendant or the defendant's counsel or agent. If an agent signs the defence or counterclaim, a copy of the defendant's written authorization of the agent must be filed with it. |
| Notification of complainant | 29. The Secretary must send to the complainant a copy of the defence and of the counterclaim, if any, and copies of all documents submitted with them. |
| Additional information | 30. (1) The Secretary, after examining the defence, the counterclaim, if any, and any supporting documents, may require the defendant to file additional information within the period fixed by the Secretary. |
| Consequence of not providing information | (2) If the defendant does not provide the additional information requested by the Secretary within the period fixed by the Secretary and fails to provide a reasonable excuse for the non-compliance, the Board may proceed with the complaint based on the information already filed with it. |
| INTERVENTION | |
| Request to intervene | 31. At any time after the Secretary sends the complaint to the defendant, and before a hearing is scheduled for the complaint, any person, other than the complainant or the defendant, who has a direct financial interest in the proceedings may request to intervene by sending the Secretary a request in writing. |
| Content of request | 32. (1) A request to intervene must describe the person's financial interest in the proceedings, contain a precise statement of the facts and grounds that form the basis of the intervention and be accompanied by copies of any relevant documents. |
| Request to be signed | (2) The request must be signed by the person or the person's counsel or agent. If an agent signs the request, a copy of the person's written authorization of the agent must be filed with it. |
| Request accepted | 33. If the Board is satisfied that the person has a direct financial interest in the proceedings and that the intervention would be useful to the proceedings, the Secretary must authorize the intervention and send to the other parties copies of the material submitted by the person. |
| Request denied | 34. If the Board does not authorize the intervention of a person, the Secretary must return the material to that person. |
| CONSIDERATION OF COMPLAINT | |
| Notice of hearing | 35. If the complainant or defendant has requested a hearing, the Secretary must set a date, time and place for the hearing and must, in writing, notify the parties of that date, time and place. |
| Confirmation of presence | 36. (1) Within 30 days after a party receives the notice of hearing, the party must notify the Board in writing as to whether they intend to attend the hearing or whether they intend to present evidence and make arguments in writing. |
| Statement of evidence | (2) A party that indicates that they will attend the hearing, must also, within 30 days after receiving the notice of hearing, provide the Board with a written statement of the names of the party's witnesses and the general nature of their evidence. |
| Statements to be given to parties | (3) The Secretary must send a copy of the statement provided by a party under subsection (2) to the other parties. |
| Request for summons | 37. (1) Within 30 days after a party receives the notice of hearing, the party may request that the Board issue a summons requiring any person to appear at the hearing to give evidence, or to produce any documents, relative to the subject-matter before the Board. |
| Content of the request | (2) The request must indicate why the evidence or documents would be relative to the subject-matter before the Board. |
| Refusal to issue summons | 38. The Board may refuse to issue a summons at the request of the party if the Board considers that the evidence or documents would not be relative to the subject-matter before the Board. |
| Pre-hearing conference | 39. (1) If a hearing is to be held and the Board is of the opinion that a pre-hearing conference might expedite the proceedings, the Board may request the Secretary to arrange a pre-hearing conference, to take place either by telephone or by the parties appearing before the Secretary, in order to (a) simplify the issues; |
| Summary to be prepared | (2) After any pre-hearing conference, the Secretary must summarize the matters that were agreed to by the parties and send a copy of the summary to them and to the Board. |
| Restriction on communication | (3) No communication may be made to the Board with respect to any statement made at the pre-hearing conference except as disclosed in the summary. |
| Failure to appear | 40. If a party does not appear at a hearing and the Board is satisfied that notice of the hearing was sent to the party in accordance with section 35, the Board may proceed in the party's absence. |
| Postponements and adjournments | 41. A hearing may be postponed or adjourned by the Board from time to time on any terms that the Board considers appropriate. |
| Procedure if no agreement | 42. Sections 43 to 46 apply to govern the procedure at the hearing to the extent that the procedure for the hearing has not been determined in a pre-hearing conference or by agreement of the parties at the beginning of the hearing. |
| Complainant's presentation | 43. At the beginning of the hearing, the complainant may present their case by first summarizing it and then presenting their evidence and making their arguments. |
| Defendant's presentation | 44. After the complainant presents their case, the defendant may present their case by first summarizing it and then presenting their evidence and making their arguments. |
| Intervenor's presentation | 45. After the complainant and the defendant have presented their cases, any intervenor is entitled to give evidence. |
| Summations | 46. After all the evidence is presented, the parties may make summations. |
| Examination, cross-examination and re-examination | 47. (1) The complainant and the defendant are each entitled to examine their own witnesses, to cross-examine a witness of another party and to re-examine their own witness for clarification. |
| Intervenor | (2) An intervenor may be cross-examined by the complainant or the defendant but is not entitled to cross-examine them or their witnesses. |
| Examination of witnesses | 48. Witnesses at the hearing shall be examined orally on oath or affirmation. |
| Board in control of hearing | 49. Any member of the Board may intervene at any time and the Board may make any orders that it considers necessary for the proper conduct of the hearing. |
| Affidavit evidence | 50. Affidavit evidence is not admissible without the consent of the party against whom the affidavit evidence is tendered. |
| THE DECISION OF THE BOARD | |
| Decision after a hearing | 51. (1) If a hearing is held, the Board may render its decision orally at the end of the hearing or it may render its decision at a later date. |
| Decision without a hearing | (2) If a hearing is not held, the Board must render its decision after its deliberations based on the material submitted by the parties. |
| Communication of the decision | 52. (1) After the Board renders its decision, the Secretary must send to each party (a) a summary of the decision, if the Board rendered
its decision orally; or |
| Signature required | (2) The summary or decision and the reasons, if any, must be signed by one of the Board members who took part in rendering the decision. |
| COMING INTO FORCE | |
| Coming into force | 53. These Rules come into force on the day on which they are registered. |
| [50-1-o] |
SOR/99-120
R.S., c. 20 (4th Supp.)
SOR/96-363
SOR/84-432
S.C. 1995, c. 40, s. 32(1)
R.S. c. 20 (4th Supp.)
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