Vol. 144, No. 8 — April 14, 2010

Registration

SOR/2010-71 March 25, 2010

BANK ACT
COOPERATIVE CREDIT ASSOCIATIONS ACT
INSURANCE COMPANIES ACT
TRUST AND LOAN COMPANIES ACT

Regulations Amending Certain Department of Finance Regulations (Miscellaneous Program)

P.C. 2010-391 March 25, 2010

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, hereby makes the annexed Regulations Amending Certain Department of Finance Regulations (Miscellaneous Program), pursuant to

(a) subsection 978(1) (see footnote a) of the Bank Act (see footnote b);

(b) section 389 (see footnote c) and subsection 463(1) (see footnote d) of the Cooperative Credit Associations Act (see footnote e);

(c) subsection 1021(1) (see footnote f) of the Insurance Companies Act (see footnote g); and

(d) subsection 531(1) (see footnote h) of the Trust and Loan Companies Act (see footnote i).

REGULATIONS AMENDING CERTAIN DEPARTMENT OF FINANCE REGULATIONS (MISCELLANEOUS PROGRAM)

BANK ACT

MANNER OF CALCULATION (FOREIGN BANKS) REGULATIONS

1. (1) The definition “revenu total” in section 1 of the French version of the Manner of Calculation (Foreign Banks) Regulations (see footnote 1) is repealed.

(2) The marginal note to the definition “total revenue” in section 1 of the English version of the Regulations is amended by replacing “revenu total” with “recettes d’exploitation totales”.

(3) Section 1 of the French version of the Regulations is amended by adding the following in alphabetical order:

« recettes d’exploitation totales » “total revenue”

« recettes d’exploitation totales » S’entend au sens du paragraphe 508(5) de la Loi.

2. The French version of the Regulations is amended by replacing “revenu total” with “recettes d’exploitation totales” in the following provisions with any necessary modifications:

(a) the descriptions of D and E in section 2;

(b) the descriptions of D and E in section 3;

(c) the descriptions of D and E in section 4;

(d) the descriptions of D and E in section 5;

(e) the descriptions of D and E in section 6; and

(f) the descriptions of D and E in section 7.

USE OF THE WORD “BANK” BY NON-FINANCIAL BUSINESSES (EXCLUDED ENTITIES) REGULATIONS

3. (1) Subsection 2(1) of the Use of the Word “Bank” by Non-financial Businesses (Excluded Entities) Regulations (see footnote 2) is renumbered as section 2.

(2) Paragraph 2(i) of the French version of the Regulations is replaced by the following:

i) les entités dans lesquelles une entité liée à une banque étrangère a un intérêt de groupe financier;

SPECIALIZED FINANCING (FOREIGN BANKS) REGULATIONS

4. Paragraph 2.3(c) of the French version of the Specialized Financing (Foreign Banks) Regulations (see footnote 3) is replaced by the following:

c) les entités de la banque étrangère s’occupant de financement spécial;

5. Paragraph 2.4 (d) of the French version of the Regulations is replaced by the following:

d) les entités de la banque étrangère s’occupant de financement spécial;

CORPORATE INTERRELATIONSHIPS (BANKS AND BANK HOLDING COMPANIES) REGULATIONS

6. Paragraphs 2(d) and (e) of the French version of the Corporate Interrelationships (Banks and Bank Holding Companies) Regulations (see footnote 4) are replaced by the following:

d) immédiatement avant l’acquisition, l’autre personne morale et ses actionnaires n’ont aucun lien de dépendance, selon la Loi de l’impôt sur le revenu, avec la banque ou la société de portefeuille bancaire et la filiale visée;

e) immédiatement avant l’acquisition, la filiale visée et l’autre personne morale ne résident pas au Canada, pour l’application de la Loi de l’impôt sur le revenu.

COOPERATIVE CREDIT ASSOCIATIONS ACT

SPECIALIZED FINANCING (COOPERATIVE CREDIT ASSOCIATIONS) REGULATIONS

7. The definition “balance sheet value” in subsection 1(1) of the English version of the Specialized Financing (Cooperative Credit Associations) Regulations (see footnote 5) is replaced by the following:

“balance sheet value” « valeur au bilan »

“balance sheet value”, in respect of the shares and ownership interests held by an entity, means the value reported on its balance sheet on an unconsolidated basis.

CORPORATE INTERRELATIONSHIPS (COOPERATIVE CREDIT ASSOCIATIONS) REGULATIONS

8. Paragraphs 2(d) and (e) of the French version of the Corporate Interrelationships (Cooperative Credit Associations) Regulations (see footnote 6) are replaced by the following:

d) immédiatement avant l’acquisition, l’autre personne morale et ses actionnaires n’ont aucun lien de dépendance, selon la Loi de l’impôt sur le revenu, avec l’association coopérative de crédit et la filiale visée;

e) immédiatement avant l’acquisition, la filiale visée et l’autre personne morale ne résident pas au Canada, pour l’application de la Loi de l’impôt sur le revenu.

INSURANCE COMPANIES ACT

CORPORATE INTERRELATIONSHIPS (INSURANCE COMPANIES AND INSURANCE HOLDING COMPANIES) REGULATIONS

9. Paragraphs 2(d) and (e) of the French version of the Corporate Interrelationships (Insurance Companies and Insurance Holding Companies) Regulations (see footnote 7) are replaced by the following:

d) immédiatement avant l’acquisition, l’autre personne morale et ses actionnaires n’ont aucun lien de dépendance, selon la Loi de l’impôt sur le revenu, avec la société d’assurances ou la société de portefeuille d’assurances et la filiale visée;

e) immédiatement avant l’acquisition, la filiale visée et l’autre personne morale ne résident pas au Canada, pour l’application de la Loi de l’impôt sur le revenu.

TRUST AND LOAN COMPANIES ACT

CORPORATE INTERRELATIONSHIPS (TRUST AND LOAN COMPANIES) REGULATIONS

10. Paragraphs 2(d) and (e) of the French version of the Corporate Interrelationships (Trust and Loan Companies) Regulations (see footnote 8) are replaced by the following:

d) immédiatement avant l’acquisition, l’autre personne morale et ses actionnaires n’ont aucun lien de dépendance, selon la Loi de l’impôt sur le revenu, avec la société de fiducie et de prêt et la filiale visée;

e) immédiatement avant l’acquisition, la filiale visée et l’autre personne morale ne résident pas au Canada, pour l’application de la Loi de l’impôt sur le revenu.

COMING INTO FORCE

11. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Bill C-37, An Act to amend the law governing financial institutions and to provide for related and consequential matters, received Royal Assent on March 29, 2007. It introduced provisions to enhance the interests of consumers, increase legislative and regulatory efficiency, and adapt the legislative framework to new developments.

The Standing Joint Committee for the Scrutiny of Regulations (SJCSR) suggested certain technical amendments to a number of supporting regulations made under Bill C-37: Specialized Financing Regulations, Manner of Calculation Regulations, Corporate Interrelationships Regulations and Use of the Word “Bank” by Non-Financial Businesses (Excluded Entities) Regulations. The amendments are proposed as a result of suggestions from the SJCSR.

Description and rationale

The amendments are technical in nature as they update the drafting style, correct grammatical errors and ensure French-English concordance. Financial institutions will not incur cost as a result of these amendments, as none of them are substantive in nature.

The Regulations reflect the following amendments:

Specialized Financing (Foreign Banks) Regulations

• The amendments harmonize the drafting style in the French version. For example, to harmonize terms used in the Regulations, the amendments correct the French terms from “les entités s’occupant de financement spécial de la banque étrangère” to “entité d’une banque étrangère s’occupant de financement spécial”.

Specialized Financing (Cooperative Credit Associations) Regulations

• The amendments harmonize the definition of “balance sheet value” with the definition used in other Specialized Financing Regulations made under other financial institutions statutes.

Manner of Calculation (Foreign Banks) Regulations

• The amendments correct the French wording from “revenu total” to “recettes d’exploitation totales” to harmonize terms used in the Regulations with those of the Bank Act.

Corporate Interrelationships (Banks and Bank Holding Companies) Regulations Corporate Interrelationships (Cooperative Credit Associations) Regulations Corporate Interrelationships (Insurance Companies and Insurance Holding Companies) Regulations Corporate Interrelationships (Trust and Loan Companies) Regulations

• The English version of these regulations specifies that the sub-sections apply “immediately before the acquisition”, whereas the French version uses the terms “au moment de l’acquisition”. To harmonize both expressions, the amendments correct the French expression to “immédiatement avant l’acquisition”.

Use of the Word “Bank” by Non-Financial Businesses (Excluded Entities) Regulations

• The amendments correct an error in the numbering of a section and make a grammatical change in the French version of the Regulations.

Consultation

Given the technical nature of the amendments, no consultations with industry stakeholders were necessary.

Contact

Jane Pearse
Director
Financial Institutions Division
Department of Finance
L’Esplanade Laurier,15th Floor, East Tower
140 O’Connor Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-992-1631
Fax: 613-943-1334
Email: jane.pearse@fin.gc.ca

Footnote a
S.C. 2005, c. 54, s. 135

Footnote b
S.C. 1991, c. 46

Footnote c
S.C. 2001, c. 9, s. 314

Footnote d
S.C. 2005, c. 54, s. 208

Footnote e
S.C. 1991, c. 48

Footnote f
S.C. 2005, c. 54, s. 364

Footnote g
S.C. 1991, c. 47

Footnote h
S.C. 2005, c. 54, s. 449

Footnote i
S.C. 1991, c. 45

Footnote 1
SOR/2001-399

Footnote 2
SOR/2001-408; SOR/2008-157, s.1

Footnote 3
SOR/2001-432

Footnote 4
SOR/2008-57

Footnote 5
SOR/2001-427

Footnote 6
SOR/2008-58

Footnote 7
SOR/2008-59

Footnote 8
SOR/2008-60

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