571. In this Part,

“association” means an association of persons formed in a foreign country on the plan known as Lloyd’s, whereby each member of the association participating in a policy becomes liable for a stated, limited or proportionate part of the whole amount payable under the policy;

“chief agency” means the principal office of a foreign company in Canada;

“chief agent”, in respect of a foreign company, means the natural person appointed pursuant to subsection 579(3) and named as such in the power of attorney referred to in paragraph 579(1)(b);

“exchange” means a group of persons formed in a foreign country for the purpose of exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney, where the principal office of the exchange is in a foreign country;

“foreign fraternal benefit society” means a fraternal benefit society incorporated outside Canada;

“foreign life company” means a foreign company that is authorized by order of the Superintendent to insure risks in Canada that fall within the class of life insurance;

“foreign property and casualty company” means a foreign company other than a foreign life company;

“fraternal benefit society”[Repealed, 1997, c. 15, s. 299]

1991, c. 47, s. 571; 1996, c. 6, s. 83.1; 1997, c. 15, s. 299.

572. (1) This Part does not apply in respect of

(a) the insurance of risks falling within the class of marine insurance;

(b) the insurance against injury to persons or loss of or damage to property, or liability for such injury, loss or damage, caused by nuclear energy, including ionizing radiation and contamination by radioactive substances, to the extent that, in the opinion of the Superintendent, that insurance is not available within Canada;

(c) the insurance of risks by a body corporate incorporated elsewhere than in Canada falling within the class of fire insurance, if the property is situated in Canada and

(i) that insurance is effected outside Canada and without any solicitation in Canada, directly or indirectly, on the part of the body corporate,

(ii) the body corporate does not advertise its business in any newspaper or other publication within Canada or by circular mailed in Canada or elsewhere, and

(iii) the body corporate does not maintain an office or agency in Canada for the receipt of applications relating in any way to its business or for any related matter; or

(d) the collection of premiums on, or other business relating to, a policy of life insurance issued to a person not resident in Canada at the time of the issuance of the policy.

(2) A body corporate incorporated elsewhere than in Canada that insures risks falling within the class of fire insurance in respect of which this Part does not apply by reason of paragraph (1)(c) may, in respect of that insurance on property situated in Canada, inspect the property and adjust any loss incurred in respect of it.

573. (1) A body corporate incorporated elsewhere than in Canada, including an association and an exchange, shall not in Canada insure a risk unless the Superintendent has, by order, approved the insurance in Canada of risks by the body corporate.

(2) A foreign company shall not in Canada insure a risk unless the risk falls within a class of insurance that is specified in the order of the Superintendent approving the insuring in Canada of risks by the foreign company.

(3) Unless authorized to insure in Canada risks falling within the class of life insurance, a foreign company shall not issue annuities in Canada.

(4) A certificate of registry issued to a body corporate incorporated elsewhere than in Canada, including an association and an exchange, under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act, or any other authorization, that had not expired or been withdrawn before the coming into force of this Part is deemed to be an order of the Superintendent of indeterminate duration under subsection (1) and the body corporate remains subject to any and all other conditions and limitations contained in the certificate or other authorization.

(5) A class of insurance specified in a certificate of registry or other authorization referred to in subsection (4) is deemed to be specified in an order of the Superintendent approving the insuring in Canada of risks by the foreign company.

1991, c. 47, s. 573; 1997, c. 15, s. 300(F).

574. (1) On application by a body corporate incorporated elsewhere than in Canada, including an association and an exchange, the Superintendent may, with the approval of the Minister but subject to the other provisions of this Part, make an order approving the insuring in Canada of risks by the body corporate.

(2) The Minister shall not approve the making of an order under subsection (1) unless the Minister is satisfied that

(a) the body corporate will be capable of making a contribution to the financial system in Canada; and

(b) if the application is made by a body corporate incorporated elsewhere than in Canada that is not controlled by a WTO Member resident, treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the body corporate principally carries on business, either directly or through a subsidiary.

1991, c. 47, s. 574; 1999, c. 28, s. 125.

575. (1) No order shall be made approving the insuring in Canada of risks by a body corporate where the name under which the body corporate is to insure risks

(a) is prohibited by an Act of Parliament;

(b) is, in the opinion of the Superintendent, deceptively misdescriptive;

(c) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trade-mark, trade name or corporate name of a body corporate, except where

(i) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and

(ii) consent to the use of the trade-mark, trade name or corporate name is signified to the Superintendent in such manner as the Superintendent may require;

(d) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or

(e) is reserved under section 45 for a company or society or proposed company or society.

(2) Notwithstanding subsection (1), an order may be made by the Superintendent approving the insuring in Canada of risks by a body corporate under a name that is the same or substantially the same as that of an entity with which the body corporate is affiliated, within the meaning of subsection 6(2), if that other entity consents to the use of the name.

(3) Before deciding not to make an order referred to in subsection (1) for one of the reasons specified in that subsection, the Superintendent shall, by a notice in writing to that effect, give the body corporate and any other interested party an opportunity to make representations.

1991, c. 47, s. 575; 1996, c. 6, s. 84; 1997, c. 15, s. 301.

576. (1) On the application of a foreign company, the Superintendent may, subject to subsection 575(1), by further order, change the name under which a foreign company insures risks.

(2) Before an application is made to the Superintendent pursuant to subsection (1) to change the name under which a foreign company insures risks, a notice of intention to make the application must be published by the applicant at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper of general circulation at or near the place where the chief agency of the foreign company is situated.

1991, c. 47, s. 576; 1996, c. 6, s. 84.

577. (1) If through inadvertence or otherwise a foreign company is permitted to insure risks under a name specified in the order of the Superintendent approving the insuring in Canada of risks by the foreign company that is prohibited by section 575, the Superintendent may, by order, direct the foreign company to change the name under which it insures risks and the foreign company shall comply with that direction.

(2) Where a foreign company has been directed under subsection (1) to change the name under which it insures risks and has not, within sixty days after the service of the direction, changed that name to a name that is not prohibited by this Part, the Superintendent may revoke the name under which the foreign company insures risks and assign to it a name and, until changed in accordance with subsection 576(1), the name under which the foreign company is to insure risks is thereafter the name so assigned.

1991, c. 47, s. 577; 1996, c. 6, s. 84.

578. (1) The name under which a foreign company is to insure risks may be set out in the order approving the insuring in Canada of risks by the foreign company in an English form, a French form, an English form and a French form, a combined English and French form or a form combining words in a language other than English or French with one of the forms specified in this subsection.

(2) A foreign company shall set out the name under which it is to insure risks, as set out in the order approving the insuring in Canada of risks by the foreign company, in legible characters in all contracts, premium notices, applications for policies, policies, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the foreign company in respect of the insuring in Canada of risks.

(3) The name of a foreign company, as set out in a certificate of registry referred to in subsection 573(4), or in any other authorization, is deemed to be set out in an order of the Superintendent approving the insuring in Canada of risks by the foreign company.

579. (1) An application under this Part for an order approving the insuring in Canada of risks by a body corporate must be filed with the Superintendent, together with such information, material and evidence as the Superintendent may require, including

(a) documents relating to the constitution of the body corporate, including, in the case of a body corporate that is neither an association nor an exchange, a copy of its incorporating instrument certified by the officer in charge of the original incorporating instrument;

(b) a power of attorney to the chief agent of the body corporate in Canada appointed pursuant to subsection (3), in such form as the Superintendent may require;

(c) a statement, in such form as the Superintendent may require, of the financial condition of the body corporate and of the business of insurance undertaken by the body corporate, and such additional statements or information as the Superintendent may require as to its solvency and its ability to meet all of its obligations;

(d) evidence satisfactory to the Superintendent that the body corporate is authorized under the laws of the country where it is incorporated to insure risks within each class of insurance in Canada that that body corporate has applied to insure;

(e) in the case of a foreign fraternal benefit society,

(i) a report of an actuary appointed by the foreign fraternal benefit society, in such form as the Superintendent may require, on the results of an actuarial valuation made by the actuary, as of the preceding December 31 or as of any later date specified by the Superintendent, of each of the benefit funds maintained by the foreign fraternal benefit society, having regard to the prospective liabilities of and contributions to each fund, and

(ii) the opinion of the actuary that the assets of the foreign fraternal benefit society applicable to each fund, taken at the value accepted by the Superintendent, together with the premiums, dues and other contributions to be received after the date of the valuation from the members according to the scale in force at the date of the valuation, are sufficient to provide for the payment at maturity of all of the obligations of the fund without deduction or abatement; and

(f) a copy of the resolution respecting the investment and lending policies, standards and procedures that the body corporate is to establish and adhere to in accordance with subsection 615(1).

(2) A power of attorney referred to in paragraph (1)(b) must

(a) contain the address of the chief agency of the body corporate; and

(b) expressly authorize the chief agent to receive all notices under the laws of Canada from the Minister or the Superintendent.

(3) A foreign company shall appoint a natural person who is ordinarily resident in Canada to be its chief agent for the purposes of this Part.

1991, c. 47, s. 579; 1997, c. 15, s. 302.

580. Before filing an application referred to in subsection 579(1), the body corporate shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where the chief agency in Canada of the body corporate is to be situated.

581. (1) The Superintendent shall not make an order under this Part approving the insuring of risks by a body corporate until it has been shown to the satisfaction of the Superintendent that the body corporate has

(a) vested in trust assets having a prescribed value,

(b) appointed an actuary pursuant to section 623 and an auditor pursuant to section 633 for its insurance business in Canada, and

(c) established the place where its chief agency will be situated,

and that all other relevant requirements of this Act have been complied with.

(2) An order approving the insuring in Canada of risks by a foreign company may contain such conditions and limitations that are consistent with this Act and relate to the insurance business in Canada of the foreign company as the Superintendent deems expedient.

(3) A foreign company that deposited securities with the Receiver General pursuant to section 7 or 25 of the Foreign Insurance Companies Act or section 196 or 219 of the Canadian and British Insurance Companies Act shall apply for the return of those securities within such period following the coming into force of this section as may be fixed by order of the Governor in Council.

(4) The securities referred to in subsection (3) are, until returned to the foreign company that deposited them, deemed to form part of the assets in Canada of that foreign company.

582. (1) The assets of a body corporate to be vested in trust pursuant to paragraph 581(1)(a) are to consist of unencumbered securities of or guaranteed by Canada or a province.

(2) The assets of a body corporate to be so vested in trust may also consist of other securities at the accepted value and on the conditions established by the Superintendent.

583. There shall be set out in an order approving the insuring in Canada of risks by a foreign company

(a) the name under which the foreign company is to insure risks;

(b) the day on which the order becomes effective;

(c) the classes of insurance risks that the foreign company is authorized to insure; and

(d) the conditions or limitations that are consistent with this Act, relate to the insurance business in Canada of the foreign company and are deemed expedient by the Superintendent.

584. (1) On the making of an order approving the insuring in Canada of risks by a foreign company, the foreign company shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where the chief agency of the foreign company is located.

(2) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of the order referred to in subsection (1).

585. The Superintendent shall cause to be published quarterly in the Canada Gazette a list of

(a) foreign companies;

(b) the classes of insurance specified in the orders of the Superintendent approving the insurance of risks by them;

(c) their chief agents; and

(d) the place where their chief agencies are situated.

586. (1) In respect of an order approving the insuring in Canada of risks by a foreign company, the Superintendent may at any time, by further order,

(a) specify additional classes of insurance risks that the foreign company is authorized to insure,

(b) make the order subject to conditions or limitations that are consistent with this Act, relate to the insurance business in Canada of the foreign company and are deemed expedient by the Superintendent, or

(c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,

but before making any such further order the Superintendent shall give the foreign company an opportunity to make representations regarding that further order.

(2) to (6) [Repealed, 1996, c. 6, s. 85]

1991, c. 47, s. 586; 1996, c. 6, s. 85.

587. A foreign company that changes its chief agent or the address of its chief agency shall, forthwith after doing so, file a further power of attorney appointing the new chief agent or containing the new address of the chief agency.

587.1 (1) Except in accordance with this section or an order made under subsection 678.6(1), a foreign company shall not

(a) transfer all or any portion of its policies in Canada or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada; or

(b) purchase or reinsure all or any portion of the policies in Canada of any body corporate.

(1.1) Subsection (1) does not apply in respect of reinsurance transactions entered into by a foreign company in the ordinary course of its business.

(2) A foreign company may, with the approval of the Minister,

(a) transfer all or any portion of its policies in Canada to, or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada by, a company, society or foreign company that is authorized to transact the classes of insurance to be transferred or reinsured;

(a.1) transfer all or any portion of its policies in Canada to any body corporate incorporated under the laws of a province that is authorized to transact the classes of insurance being transferred;

(a.2) cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken by it in respect of its policies in Canada by any body corporate incorporated under the laws of a province that is authorized to transact the classes of insurance to be reinsured if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with

(i) the appropriate official or public body responsible for the supervision of the body corporate,

(ii) the body corporate, or

(iii) the appropriate official or public body and the body corporate;

(b) cause itself to be reinsured, on an indemnity basis, against all or any portion of the risks undertaken by it in respect of its policies in Canada by any body incorporated under the laws of a province that is authorized to transact the classes of insurance to be reinsured; or

(c) purchase or reinsure all or any portion of the policies in Canada of any body corporate.

(3) The Minister’s approval is not required for a transaction described in subsection (2) if it is a prescribed transaction or a transaction in a prescribed class of transactions.

1997, c. 15, s. 303; 1999, c. 1, s. 9; 2001, c. 9, s. 442.

588. (1) A foreign company may reinsure, but shall not otherwise insure, a risk falling within a class of insurance specified in the order of the Superintendent approving the insuring of risks by the foreign company if the order limits the foreign company to the reinsurance of those risks.

(2) A condition that limits a foreign company to the reinsurance of risks falling within a class of insurance and that is contained in a certificate of registry issued under the Foreign Insurance Companies Act or under Part VIII of the Canadian and British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn before the coming into force of this Part is deemed to be a condition in an order of the Superintendent approving the insurance of risks by the foreign company.

589. The Superintendent may not make or vary an order approving the insuring in Canada of risks by a foreign company if the foreign company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, accident insurance, personal accident insurance, sickness insurance and loss of employment insurance.

1991, c. 47, s. 589; 1997, c. 15, s. 304.

590. (1) Notwithstanding section 589, subsections 573(4) and 588(2) permit a foreign company to which was issued under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act a certificate of registry or other authorization specifying both risks in Canada falling within the class of life insurance and risks in Canada falling within some other class of insurance, other than accident and sickness insurance, accident insurance, personal accident insurance and sickness insurance, to insure those risks.

(2) A foreign company referred to in subsection (1) shall maintain an account and funds in respect of the insurance of risks falling within the classes of life insurance and accident and sickness insurance, accident insurance, personal accident insurance and sickness insurance separately from those maintained in respect of the insurance of risks falling within any other class of insurance.

591. (1) Every foreign company that has outstanding policies in Canada of a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance.

(1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of the Minister, it has the authority to levy an assessment on each of its members of not less than eighty-five one hundredths of one per cent of the member’s average annual premium income from policies that are eligible for compensation from the association.

(2) Subsection (1) does not apply

(a) to a foreign company that may reinsure but may not otherwise insure risks;

(b) in respect of a class of insurance that, in the opinion of the Minister, is adequately covered by some other compensation plan for that class of insurance;

(c) in respect of the insuring in Canada of risks falling within the class of fire insurance by a foreign company that is a member of the Fire Mutuals Guarantee Fund; or

(d) to a foreign company that is a foreign fraternal benefit society or a reciprocal or inter-insurance exchange.

1991, c. 47, s. 591; 1996, c. 6, s. 86; 1997, c. 15, s. 305.

592. Unless authorized to insure risks that fall within the class of life insurance, a foreign company shall not

(a) issue policies in Canada, or

(b) accept or retain on the direction of a policyholder or beneficiary policy dividends or bonuses, or policy proceeds that are payable on the surrender or maturity of the policy or on the death of the person whose life is insured,

where the liabilities of the foreign company in respect of the policies or the amounts accepted or retained vary in amount depending on the market value of a fund consisting of a specified group of assets.

593. A foreign company that issues policies described in section 592 or accepts or retains amounts so described shall, in respect of those policies or amounts,

(a) maintain separate accounts; and

(b) establish and maintain one or more funds consisting of assets in Canada that are segregated from the other assets in Canada of the foreign company and that are specified as the assets on the market value of which the liabilities of the foreign company in respect of those policies or amounts depend.

594. A claim against a segregated fund maintained as required by section 593 under a policy in Canada or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund.

1991, c. 47, s. 594; 1996, c. 6, s. 167; 1997, c. 15, s. 306.

595. The liability of a foreign company under a policy in Canada or for an amount in respect of which a segregated fund is maintained pursuant to section 593

(a) does not, except to the extent that the assets of the fund are insufficient to satisfy a claim for any minimum amount that the foreign company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets in Canada of the foreign company, other than the assets of that fund,

but

(b) to the extent that the assets of the fund are insufficient to satisfy such a claim, gives rise to a claim against the assets in Canada of the foreign company, other than the assets of that fund, that has the priority referred to in subsection 161(2) of the Winding-up and Restructuring Act.

1991, c. 47, s. 595; 1996, c. 6, s. 167.

596. (1) The Governor in Council may, in respect of policies in Canada of a foreign company, make regulations limiting the extent to which the foreign company may cause itself to be reinsured against risks in Canada undertaken by it.

(2) A regulation made pursuant to subsection (1) may provide that the Superintendent may, by order, determine the matters or exercise the discretion that the regulation may specify.

597. (1) Except with the approval of the Superintendent, a foreign company shall not cause itself to be reinsured in respect of risks in Canada undertaken by it by a related party of the foreign company that is not a company or a foreign company.

(2) For the purposes of this section, “related party”, in relation to a foreign company, means a “related party” within the meaning of Part XI, with such modifications as the circumstances require.

598. For the purposes of this section and sections 598.1 to 605, “cost of borrowing” means, in respect of a loan or an advance on the security or against the cash surrender value of a policy made by a foreign company,

(a) the interest or discount applicable to the loan or advance;

(b) any amount charged in connection with the loan or advance that is payable by the borrower to the foreign company; and

(c) any charge prescribed to be included in the cost of borrowing.

For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.

1991, c. 47, s. 598; 1997, c. 15, s. 307; 2001, c. 9, s. 443.

598.1 (1) Where a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply, and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the foreign company shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.

(2) The charges to be rebated do not include the interest or discount applicable to the loan.

(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.

1997, c. 15, s. 307.

599. (1) A foreign company shall not include in its assets in Canada any loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 600, and other prescribed information have, in the prescribed manner and at the prescribed time, been disclosed by the foreign company to the borrower.

(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.

1991, c. 47, s. 599; 1997, c. 15, s. 307.

600. The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents.

601. (1) Where a foreign company makes a loan in respect of which the disclosure requirements of section 599 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the foreign company shall disclose to the borrower, in accordance with the regulations,

(a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable,

(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and

(ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which any such rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated;

(b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan;

(c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;

(d) particulars of any other rights and obligations of the borrower; and

(e) any other prescribed information, at such time and in such form and manner as may be prescribed.

(2) A foreign company shall, in accordance with the regulations, at such time and in such manner as may be prescribed, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards in Canada and provide prescribed information to any person applying to it in Canada for a credit, payment or charge card.

(3) Where a foreign company issues in Canada or has issued in Canada a credit, payment or charge card to a natural person, the foreign company shall, in addition to disclosing the costs of borrowing in respect of any loan that is obtained through the use of the card and that is repayable in Canada, disclose to the person, in accordance with the regulations,

(a) any charges or penalties described in paragraph (1)(b);

(b) particulars of the person’s rights and obligations;

(c) any charges for which the person becomes responsible by accepting or using the card;

(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing or the loan agreement as may be prescribed; and

(e) any other prescribed information, at such time and in such form and manner as may be prescribed.

(4) Where a foreign company enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 599 apply and the loan is not one in respect of which subsection (1) or (3) applies, the foreign company shall, in addition to disclosing the costs of borrowing, disclose to the person, in accordance with the regulations,

(a) any charges or penalties described in paragraph (1)(b);

(b) particulars of the person’s rights and obligations;

(c) any charges for which the person is responsible under the arrangement;

(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing under the arrangement as may be prescribed; and

(e) any other prescribed information, at such time and in such form and manner as may be prescribed.

1991, c. 47, s. 601; 1997, c. 15, s. 308.

601.1 If a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply and the loan is secured by a mortgage on real property, the foreign company shall disclose to the borrower at such time and in such manner as may be prescribed, such information as may be prescribed respecting the renewal of the loan.

1997, c. 15, s. 309.

601.2 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 601(4), loans, credit cards, payment cards or charge cards, offered to natural persons by a foreign company, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement contains such information as may be required by the regulations, in such form and manner as may be prescribed.

1997, c. 15, s. 309.

602. Where regulations have been made respecting the manner in which the cost of borrowing is to be disclosed in respect of an advance on the security or against the cash surrender value of a policy in Canada, a foreign company shall not make such an advance unless the cost of borrowing, as calculated and expressed in accordance with the regulations, has, in the prescribed manner, been disclosed by the foreign company or otherwise as prescribed to the policyholder at or before the time when the advance is made.

603. The Governor in Council may make regulations

(a) respecting the manner in which, and the time at which, a foreign company is to disclose to a borrower

(i) the cost of borrowing,

(ii) any rebate of the cost of borrowing, and

(iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 601;

(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a foreign company to a borrower;

(c) respecting the manner of calculating the cost of borrowing;

(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;

(e) specifying any class of loans that are not to be subject to section 598.1, subsection 599(1) or 601(1) or (4) or section 601.1 or 601.2 or the regulations or any specified provisions of the regulations;

(f) specifying any class of advances that are not to be subject to section 602 or the regulations or any specified provisions of the regulations;

(g) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 598.1 to 602 are to be disclosed;

(h) prohibiting the imposition of any charge or penalty referred to in section 601 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;

(i) respecting the nature or amount of any charge or penalty referred to in paragraph 601(1)(b), (3)(a) or (4)(a) and the costs of the foreign company that may be included or excluded in the determination of the charge or penalty;

(j) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 601(1)(a)(ii);

(k) respecting advertisements made by a foreign company regarding arrangements referred to in subsection 601(4), loans, credit cards, payment cards or charge cards;

(l) respecting the renewal of loans; and

(m) respecting such other matters or things as are necessary to carry out the purposes of sections 598.1 to 602.

1991, c. 47, s. 603; 1997, c. 15, s. 310.

604. (1) A foreign company shall

(a) establish procedures for dealing with complaints made by persons in Canada having requested or received products or services in Canada from the foreign company;

(b) designate an officer or employee of the foreign company to be responsible for implementing those procedures; and

(c) designate one or more officers or employees of the foreign company to receive and deal with those complaints.

(2) A foreign company shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).

1991, c. 47, s. 604; 1997, c. 15, s. 311; 2001, c. 9, s. 444.

604.1 In any province, if there is no law of the province that makes a foreign company subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a foreign company, the foreign company shall be a member of an organization that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established by foreign companies under paragraph 604(1)(a).

2001, c. 9, s. 444.

605. (1) A foreign company shall, in the prescribed manner, provide a person in Canada requesting or receiving a product or service in Canada from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2), the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy in Canada, or about any other obligation of the foreign company under a consumer provision.

(2) The Commissioner shall prepare a report, to be included in the report referred to in section 34 of the Financial Consumer Agency of Canada Act, respecting

(a) procedures for dealing with complaints established by foreign companies pursuant to paragraph 604(1)(a); and

(b) the number and nature of complaints that have been brought to the attention of the Agency by persons who have requested or received a product or service from a foreign company.

1991, c. 47, s. 605; 1997, c. 15, s. 312; 2001, c. 9, s. 444.

606. (1) A foreign company shall not include in its assets in Canada any loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment thereon before its due date.

(2) Subsection (1) does not apply in respect of a loan

(a) that is secured by a mortgage on real property; or

(b) that is made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed.

1991, c. 47, s. 606; 1997, c. 15, s. 313.

607. The Governor in Council may make regulations

(a) requiring a foreign company to establish procedures regarding the collection, retention, use and disclosure of any information about its customers in Canada or any class of customers in Canada;

(b) requiring a foreign company to establish procedures for dealing with complaints made by a customer in Canada about the collection, retention, use or disclosure of information about the customer;

(c) respecting the disclosure by a foreign company of information relating to the procedures referred to in paragraphs (a) and (b);

(d) requiring a foreign company to designate the officers and employees of the company who are responsible for

(i) implementing the procedures referred to in paragraph (b), and

(ii) receiving and dealing with complaints made by a customer, in Canada, of the foreign company about the collection, retention, use or disclosure of information about the customer;

(e) requiring a foreign company to report information relating to

(i) complaints made by its customers in Canada about the collection, retention, use or disclosure of information, and

(ii) its actions taken to deal with the complaints; and

(f) defining “information”, “collection” and “retention” for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.

1991, c. 47, s. 607; 1997, c. 15, s. 314.

607.1 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by foreign companies or any prescribed class of foreign companies, including regulations respecting

(a) the information that must be disclosed, including information relating to

(i) any product or service or prescribed class of products or services offered by them,

(ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services,

(iii) anything they are required to do or to refrain from doing under a consumer provision, and

(iv) any other matter that may affect their dealings with customers or the public;

(b) the manner, place and time in which, and the persons to whom, information is to be disclosed; and

(c) the content and form of any advertisement by foreign companies or any prescribed class of foreign companies relating to any matter referred to in paragraph (a).

2001, c. 9, s. 445.