Vol. 150, No. 13 — June 29, 2016

Registration

SOR/2016-142 June 14, 2016

BANK ACT
CANADA DEPOSIT INSURANCE CORPORATION ACT
COOPERATIVE CREDIT ASSOCIATIONS ACT
CUSTOMS TARIFF
INSURANCE COMPANIES ACT
TRUST AND LOAN COMPANIES ACT

Regulations Amending Certain Department of Finance Regulations (Miscellaneous Program)

P.C. 2016-511 June 14, 2016

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

• (a) subsections 418.1(2) (see footnote a) and (3) (see footnote b), sections 448.3 (see footnote c), 450 (see footnote d), 454 (see footnote e), 458.3 (see footnote f) and 459.4 (see footnote g), subsections 552(2) (see footnote h) and (3) (see footnote i) and sections 566.1 (see footnote j), 568 (see footnote k), 572 (see footnote l), 575.1 (see footnote m), 576.2 (see footnote n) and 978 (see footnote o) of the Bank Act (see footnote p);
• (b) subsection 39.15(8) (see footnote q) of the Canada Deposit Insurance Corporation Act (see footnote r);
• (c) subsections 382.2(2) (see footnote s) and (3) (see footnote t), sections 385.131 (see footnote u), 385.16 (see footnote v), 385.21 (see footnote w) and 385.252 (see footnote x), subsection 385.27(5) (see footnote y) and sections 385.28 (see footnote z) and 463 (see footnote z1) of the Cooperative Credit Associations Act (see footnote z2);
• (d) subsection 19(1) of the Customs Tariff (see footnote z3);
• (e) subsections 469.1(2) (see footnote z4) and (3) (see footnote z5), sections 480 (see footnote z6), 485 (see footnote z7), 488.1 (see footnote z8) and 489.2 (see footnote z9), subsections 542.061(2) (see footnote z10) and (3) (see footnote z11) and sections 599 (see footnote z12), 603 (see footnote z13), 606.1 (see footnote z14) and 607.1 (see footnote z15) of the Insurance Companies Act (see footnote z16); and
• (f) subsections 418.1(2) (see footnote z17) and (3) (see footnote z18), sections 434.1 (see footnote z19), 436 (see footnote z20), 440 (see footnote z21) and 443.2 (see footnote z22), subsection 444.1(5) (see footnote z23) and sections 444.3 (see footnote z24) and 531 (see footnote z25) of the Trust and Loan Companies Act (see footnote z26).

Regulations Amending Certain Department of Finance Regulations (Miscellaneous Program)

Bank Act

Cost of Borrowing (Banks) Regulations

1 Paragraph 7(2)(c) of the Cost of Borrowing (Banks) Regulations (see footnote 1) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or

Cost of Borrowing (Authorized Foreign Banks) Regulations

2 Paragraph 7(2)(c) of the Cost of Borrowing (Authorized Foreign Banks) Regulations (see footnote 2) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or
  

Principal Protected Notes Regulations

3 (1) Paragraph 3(h) of the French version of the Principal Protected Notes Regulations (see footnote 3) is replaced by the following:

• h) le fait que le billet peut ou non être racheté avant l’échéance et, le cas échéant, que le rachat avant l’échéance puisse faire en sorte que l’investisseur reçoive une somme inférieure au montant du capital;

(2) Paragraphs 3(j) to (l) of the French version of the Regulations are replaced by the following:

• j) le fait que l’achat du billet peut ou non être annulé par l’investisseur et, le cas échéant, les modalités d’annulation;
• k) le fait que le billet prévoit que l’institution est ou non autorisée à le modifier et, le cas échéant, dans quelles circonstances;
• l) le fait que la structure ou la gestion du billet peut ou non avoir pour effet de placer l’institution en situation de conflit d’intérêts;

Credit Business Practices (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Foreign Insurance Companies) Regulations

4 Subsection 7(4) of the French version of the Credit Business Practices (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Foreign Insurance Companies) Regulations (see footnote 4) is replaced by the following:

(4) Si le consentement visé à l’alinéa (3)b) est donné oralement, l’institution doit, sans délai, faire parvenir au débiteur une confirmation écrite, sur support papier ou électronique.

Mortgage Insurance Business (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations

5 The definition assureur in section 1 of the French version of the Mortgage Insurance Business (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations (see footnote 5) is replaced by the following:

assureur S’entend notamment d’un organisme gouvernemental qui fournit de l’assurance hypothécaire à une institution. (insurer)

Mortgage Insurance Disclosure (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations

6 The definition assureur in section 1 of the French version of the Mortgage Insurance Disclosure (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations (see footnote 6) is replaced by the following:

assureur S’entend notamment d’un organisme gouvernemental qui fournit de l’assurance hypothécaire à une institution. (insurer)

Deposit Type Instruments Regulations

7 (1) Subparagraph 3(1)(b)(ii) of the French version of the Deposit Type Instruments Regulations (see footnote 7) is replaced by the following:

• (ii) le taux d’intérêt préférentiel ou le taux d’acceptation bancaire utilisé pour calculer le taux d’intérêt,

(2) Paragraph 3(1)(g) of the French version of the Regulations is replaced by the following:

• g) si l’accord prévoit que l’émission de l’instrument peut être annulée dans un certain délai, ce délai;

Negative Option Billing Regulations

8 The definition produit ou service optionnel in section 1 of the French version of the Negative Option Billing Regulations (see footnote 8) is replaced by the following:

produit ou service optionnel Produit ou service qui est offert ou fourni à une personne par une institution, les filiales qu’elle contrôle ainsi que par leurs mandataires et représentants — moyennant des frais additionnels — uniquement dans le cadre d’une convention portant sur un produit ou service financier de base offert par l’institution. (optional product or service)

9 Paragraph 8(2)(b) of the French version of the Regulations is replaced by the following:

• b) sans délai après la dernière utilisation, dans le cas de l’offre fondée sur un nombre donné d’utilisations, du fait que l’offre a pris fin et de la méthode employée pour facturer les frais de toute utilisation subséquente.

Canada Deposit Insurance Corporation Act

Eligible Financial Contract Regulations (Canada Deposit Insurance Corporation Act)

10 The portion of the definition contrat dérivé in section 1 of the French version of the Eligible Financial Contract Regulations (Canada Deposit Insurance Corporation Act) (see footnote 9) before paragraph (a) is replaced by the following:

contrat dérivé Contrat financier dont les obligations sont dérivées d’un ou de plusieurs éléments de référence sous-jacents — tels que les taux d’intérêt, les indices, les devises, les matières premières, les titres ou autres titres de participation, les obligations de crédit ou de garantie, les titres de créance, les variables climatiques, la bande passante, le tarif pour le fret, les droits d’émission, les indices de bien immobilier et l’inflation ou autres données macroéconomiques — ou qui se rapportent à un ou plusieurs de ces éléments ou en sont fonction, y compris :

Cooperative Credit Associations Act

Notice of Branch Closure (Cooperative Credit Associations) Regulations

11 (1) The definition succursale de dépôt de détail in section 1 of the French version of the Notice of Branch Closure (Cooperative Credit Associations) Regulations (see footnote 10) is repealed.

(2) The definition retail deposit-taking branch in section 1 of the English version of the Regulations is replaced by the following:

retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (bureau de dépôt de détail)

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

bureau de dépôt de détail Bureau ou succursale d’une institution financière au Canada dans lequel celle-ci ouvre des comptes de dépôt de détail et procède à la sortie de fonds pour ses clients par l’intermédiaire d’une personne physique. (retail deposit-taking branch)

Cost of Borrowing (Retail Associations) Regulations

12 Paragraph 7(2)(c) of the Cost of Borrowing (Retail Associations) Regulations (see footnote 11) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or

Customs Tariff

Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations

13 Chapter 20 of Section IV of Schedule III to the French version of the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations (see footnote 12) is amended by replacing “Un changement aux sous-positions 2005.10 à 2005.99 de toute autre position.” with “Un changement aux sous-positions 2005.20 à 2005.99 de toute autre position.”.

Insurance Companies Act

Cost of Borrowing (Canadian Insurance Companies) Regulations

14 Paragraph 7(2)(c) of the Cost of Borrowing (Canadian Insurance Companies) Regulations (see footnote 13) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or
  

Cost of Borrowing (Foreign Insurance Companies) Regulations

15 Paragraph 7(2)(c) of the Cost of Borrowing (Foreign Insurance Companies) Regulations (see footnote 14) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or
  

Trust and Loan Companies Act

Cost of Borrowing (Trust and Loan Companies) Regulations

16 Paragraph 7(2)(c) of the Cost of Borrowing (Trust and Loan Companies) Regulations (see footnote 15) is replaced by the following:

• (c) a rescission period of at least two clear business days is provided in the credit agreement; or
  

Notice of Branch Closure (Trust and Loan Companies) Regulations

17 (1) The definition succursale de dépôt de détail in section 1 of the French version of the Notice of Branch Closure (Trust and Loan Companies) Regulations (see footnote 16) is repealed.

(2) The definition retail deposit-taking branch in section 1 of the English version of the Regulations is replaced by the following:

retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (bureau de dépôt de détail)

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

bureau de dépôt de détail Bureau ou succursale d’une institution financière au Canada dans lequel celle-ci ouvre des comptes de dépôt de détail et procède à la sortie de fonds pour ses clients par l’intermédiaire d’une personne physique. (retail deposit-taking branch)

18 Paragraph 9(a) of the English version of the Regulations is replaced by the following:

• (a) the member company has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch, the cessation of the activity, alternate service delivery by the member company or measures to help the branch’s customers adjust to the closure or cessation;

Coming into Force

19 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.)

Issues

In the course of drafting regulations made under the financial institutions statutes, various drafting errors were made such that provisions in the French version of the regulations either differed from the English version or did not use the terms provided in the enabling legislation and related regulations. In other cases, provisions in the English version of the regulations did not use the terms provided in the enabling legislation or existing regulations. In several provisions, the language of the provision in both English and French was not precise. The Standing Joint Committee for the Scrutiny of Regulations has requested that these discrepancies be rectified.

Objectives

The objective of the Regulations Amending Certain Department of Finance Regulations (Miscellaneous Program) [the Regulations] is to correct linguistic disagreements and other errors and inconsistencies to allow for clear and coherent regulations and consistency in English and French versions of regulations.

Description

The Regulations modify various provisions in regulations that fall under the Bank Act, the Canada Deposit Insurance Corporation Act, the Cooperative Credit Associations Act, the Customs Tariff, the Insurance Companies Act and the Trust and Loan Companies Act, so that they match the enabling legislation, existing regulations on the same subject, and/or the English or French version of the provisions. Amendments are also made to certain provisions in the regulations to make the language more precise. The Standing Joint Committee for the Scrutiny of Regulations has requested that these discrepancies be rectified.

“One-for-One” Rule

The “One-for-One” Rule does not apply to the Regulations, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to the Regulations, as there are no incremental costs on small business.

Rationale

Over the past several years, the Department of Finance has received requests from the Standing Joint Committee for the Scrutiny of Regulations to remove various linguistic disagreements, correct inconsistencies, and make the language more precise in a number of regulations. The Regulations correct linguistic disagreements and other inconsistencies, and adds precision to allow for clear and coherent regulations and consistency in the English and French versions of regulations. The amendments have no substantive impact and merely correct drafting errors.

Contact

Glenn Campbell
Director
Financial Institutions Division
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1P 5E9
Telephone: 613-369-3945
Email: fin.finlegis-legisfin.fin@canada.ca

• Footnote a
  S.C. 2009, c. 2, s. 270
• Footnote b
  S.C. 2012, c. 5, s. 35
• Footnote c
  S.C. 2007, c. 6, s. 31
• Footnote d
  S.C. 2012, c. 5, s. 41
• Footnote e
  S.C. 2012, c. 5, s. 44
• Footnote f
  S.C. 2012, c. 5, s. 47
• Footnote g
  S.C. 2012, c. 5, s. 51
• Footnote h
  S.C. 2009, c. 2, s. 273
• Footnote i
  S.C. 2012, c. 5, s. 62
• Footnote j
  S.C. 2007, c. 6, s. 89
• Footnote k
  S.C. 2012, c. 5, s. 65
• Footnote l
  S.C. 2012, c. 5, s. 68
• Footnote m
  S.C. 2012, c. 5, s. 70
• Footnote n
  S.C. 2012, c. 5, s. 72
• Footnote o
  S.C. 2010, c. 12, s. 2092
• Footnote p
  S.C. 1991, c. 46
• Footnote q
  S.C. 2007, c. 29, s. 103(1)
• Footnote r
  R.S., c. C-3
• Footnote s
  S.C. 2009, c. 2, s. 277
• Footnote t
  S.C. 2012, c. 5, s. 107
• Footnote u
  S.C. 2007, c. 6, s. 165
• Footnote v
  S.C. 2012, c. 5, s. 110
• Footnote w
  S.C. 2012, c. 5, s. 113
• Footnote x
  S.C. 2012, c. 5, s. 115
• Footnote y
  S.C. 2012, c. 5, s. 116
• Footnote z
  S.C. 2012, c. 5, s. 117
• Footnote z1
  S.C. 2005, c. 54, s. 208
• Footnote z2
  S.C. 1991, c. 48
• Footnote z3
  S.C. 1997, c. 36
• Footnote z4
  S.C. 2009, c. 2, s. 283
• Footnote z5
  S.C. 2012, c. 5, s. 131
• Footnote z6
  S.C. 2012, c. 5, s. 132
• Footnote z7
  S.C. 2012, c. 5, s. 135
• Footnote z8
  S.C. 2012, c. 5, s. 137
• Footnote z9
  S.C. 2012, c. 5, s. 139
• Footnote z10
  S.C. 2009, c. 2, s. 285
• Footnote z11
  S.C. 2012, c. 5, s. 141
• Footnote z12
  S.C. 2012, c. 5, s. 146
• Footnote z13
  S.C. 2012, c. 5, s. 149
• Footnote z14
  S.C. 2012, c. 5, s. 151
• Footnote z15
  S.C. 2012, c. 5, s. 152
• Footnote z16
  S.C. 1991, c. 47
• Footnote z17
  S.C. 2009, c. 2, s. 290
• Footnote z18
  S.C. 2012, c. 5, s. 167
• Footnote z19
  S.C. 2007, c. 6, s. 363
• Footnote z20
  S.C. 2012, c. 5, s. 170
• Footnote z21
  S.C. 2012, c. 5, s. 173
• Footnote z22
  S.C. 2012, c. 5, s. 175
• Footnote z23
  S.C. 2012, c. 5, s. 176
• Footnote z24
  S.C. 2012, c. 5, s. 178
• Footnote z25
  S.C. 2005, c. 54, s. 449
• Footnote z26
  S.C. 1991, c. 45
• Footnote 1
  SOR/2001-101
• Footnote 2
  SOR/2002-262
• Footnote 3
  SOR/2008-180
• Footnote 4
  SOR/2009-257
• Footnote 5
  SOR/2010-68
• Footnote 6
  SOR/2010-69
• Footnote 7
  SOR/2011-98
• Footnote 8
  SOR/2012-23
• Footnote 9
  SOR/2007-255
• Footnote 10
  SOR/2002-105; SOR/2014-273, s. 16
• Footnote 11
  SOR/2002-263
• Footnote 12
  SOR/94-23
• Footnote 13
  SOR/2001-102
• Footnote 14
  SOR/2001-103
• Footnote 15
  SOR/2001-104
• Footnote 16
  SOR/2002-106; SOR/2014-273, s. 43