Regulations Amending Certain Regulations Concerning Disclosure on Account Opening by Telephone Request: SOR/2021-126

Canada Gazette, Part II, Volume 155, Number 13

Registration
SOR/2021-126 June 10, 2021

TRUST AND LOAN COMPANIES ACT

BANK ACT

P.C. 2021-521 June 10, 2021

His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister of Finance, makes the annexed Regulations Amending Certain Regulations Concerning Disclosure on Account Opening by Telephone Request, pursuant to

Regulations Amending Certain Regulations Concerning Disclosure on Account Opening by Telephone Request

Trust and Loan Companies Act

Disclosure on Account Opening by Telephone Request (Trust and Loan Companies) Regulations

1 Paragraph 2(1)(e) of the Disclosure on Account Opening by Telephone Request (Trust and Loan Companies) Regulations footnote 1 is repealed.

Bank Act

Disclosure on Account Opening by Telephone Request (Authorized Foreign Banks) Regulations

2 Paragraph 2(1)(e) of the Disclosure on Account Opening by Telephone Request (Authorized Foreign Banks) Regulations footnote 2 is repealed.

Disclosure on Account Opening by Telephone Request (Banks) Regulations

3 Paragraph 2(1)(e) of the Disclosure on Account Opening by Telephone Request (Banks) Regulations footnote 3 is repealed.

Coming into Force

4 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

Provisions of certain regulations concerning disclosure on account opening by telephone request for financial institutions need to be repealed to reflect new provisions of the Canada Deposit Insurance Corporation Act (CDIC Act) that came into force on April 30, 2020.

Objective

The amendments are intended to ensure that the regulations reflect recent changes to the CDIC Act.

Description and rationale

The Government of Canada announced in 2014 the launch of a comprehensive review of Canada's deposit insurance framework to ensure that it would continue to provide adequate protection for the savings of Canadians. Following the review, the CDIC Act was amended to extend deposit insurance coverage to foreign currency deposits. The changes came into force on April 30, 2020.

The Disclosure on Account Opening by Telephone Request (Banks) Regulations, the Disclosure on Account Opening by Telephone Request (Trust and Loan Companies) Regulations, and the Disclosure on Account Opening by Telephone Request (Authorized Foreign Banks) Regulations include provisions that require federally regulated financial institutions to notify customers that are opening accounts by telephone that deposits in foreign currencies will not be insured by the Canada Deposit Insurance Corporation. This requirement reflected the legislative regime that existed prior to April 30, 2020.

These provisions are being repealed since they are no longer required following the changes to the CDIC Act to extend deposit insurance coverage to foreign currency deposits. The amendments help ensure that financial institutions provide customers with accurate information regarding their deposit insurance.

One-for-one rule and small business lens

The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business.

Analysis under the small business lens determined that the proposal will not impact small businesses in Canada.

Contact

Siyu (Alice) Xie
Economist
Financial Stability and Capital Markets Division
Financial Sector Policy Branch
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Email: siyu.xie@canada.ca