Vol. 146, No. 12 — June 6, 2012
SI/2012-36 June 6, 2012
FINANCIAL SYSTEM REVIEW ACT
Order Fixing May 24, 2012 as the Day on which the Majority of the Provisions of the Act Come into Force
P.C. 2012-642 May 17, 2012
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 225 of the Financial System Review Act, chapter 5 of the Statutes of Canada, 2012, hereby fixes May 24, 2012 as the day on which that Act comes into force, other than sections 3, 9 to 11, 46, 54, 56 to 59, 77, 105, 123, 129, 154, 163, 191, 192 and 207, subsection 217(2) and sections 222 to 224.
(This note is not part of the Order.)
An Act to amend the law governing financial institutions and to provide for related and consequential matters (the Financial System Review Act, Statutes of Canada: 2012, c. 5) was assented to on March 29, 2012. The Order fixes May 24, 2012, as the coming into force date to bring into force the majority of the provisions of the Financial System Review Act.
Although the most critical provisions, those renewing the sunset date in the financial institutions statutes, came into force on Royal Assent, the other provisions of the Financial System Review Act must be brought into force by Order. This Order brings into force the majority of those provisions of the Financial System Review Act which are not yet in force.
Canada’s sound financial system is a model for countries around the world, and for the fourth year in a row, Canada has been ranked as having the soundest banks in the world by the World Economic Forum.
The four principal acts that govern financial sector regulation, the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, and the Trust and Loan Companies Act, are subject to a five-year review cycle.
The Financial System Review Act ensures Canada’s financial system continues to be secure for Canadians and a fundamental strength for our economy.
The Financial System Review Act includes measures to
- update financial institutions legislation to promote financial stability and ensure Canada’s financial institutions continue to operate in a competitive, efficient and stable environment;
- fine-tune the consumer protection framework, including enhancing the supervisory powers of the Financial Consumer Agency of Canada; and
- improve efficiency by reducing the administrative burden on financial institutions and adding regulatory flexibility.
There are also changes to related statutes such as the Bank of Canada Act, the Canada Deposit Insurance Corporation Act, the Canadian Payments Act, the Financial Consumer Agency of CanadaAct, and the Office of the Superintendent of Financial Institutions Act.
This Order brings into force the majority of those provisions of the Financial System Review Act which are not yet in force. Some of the provisions of the Financial System Review Act are not being brought into force until further technical work is undertaken.
The current five-year review was launched on September 20, 2010. The Minister of Finance invited the views of all Canadians on how to improve our financial system in an open consultation process. Approximately 30 submissions were received from a range of stakeholders.
The Financial System Review Act takes into account the concerns of the major interest groups, including consumer groups, stakeholder and policyholder groups and financial sector industry associations.
Financial Institutions Division
Department of Finance
L’Esplanade Laurier, 15th Floor, East Tower
140 O’Connor Street