Manner of Calculation (Foreign Banks) Regulations

Manner of Calculation (Foreign Banks) Regulations ( B-1.01 -- SOR/2001-399 )
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Source: http://laws.justice.gc.ca/en/B-1.01/SOR-2001-399/text.html
Regulation current to September 15, 2006

SOR/2001-399

Registration 4 October, 2001

BANK ACT

Manner of Calculation (Foreign Banks) Regulations

P.C. 2001-1770 4 October, 2001

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 978^a of the Bank Act^b, hereby makes the annexed Manner of Calculation (Foreign Banks) Regulations.

^a S.C. 2001, c. 9, s. 183^b S.C. 1991, c. 46

MANNER OF CALCULATION (FOREIGN BANKS) REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

"Act" « Loi »

"Act" means the Bank Act. (Loi)

"total assets" « actif total »

"total assets", in respect of an entity, means the total value of its assets as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in Canada, or in the jurisdiction in which the entity was formed or incorporated. (actif total)

"total revenue" « revenu total »

"total revenue", in respect of an entity, means its total revenue as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in Canada, or in the jurisdiction in which the entity was formed or incorporated. (revenu total)

PRESCRIBED MANNER

Portion of entity's activities

2. For the purpose of the definition "financial services entity" in subsection 507(1) of the Act, the prescribed manner of determining the portion of the activities that an entity engages in that consists of one or more of the activities referred to in paragraphs (a) to (h) of that definition (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the entity that is in respect of the particular activities,
Cis the total assets of the entity,
Dis the part of the total revenue of the entity that is derived from the particular activities, and
Eis the total revenue of the entity.

Portion of entity's business in Canada -- par. 522.05(a) of the Act

3. For the purpose of paragraph 522.05(a) of the Act, the prescribed manner of determining the portion of the business in Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on in Canada,
Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on in Canada,
Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on in Canada, and
Eis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on in Canada.

Portion of entity's business outside Canada -- par. 522.05(b) of the Act

4. For the purpose of paragraph 522.05(b) of the Act, the prescribed manner of determining the portion of the business outside Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on outside Canada,
Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on outside Canada,
Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on outside Canada, and
Eis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on outside Canada.

Portion of Canadian entity's activities -- par. 522.09(b) of the Act

5. For the purpose of paragraph 522.09(b) of the Act, the prescribed manner of determining the portion of the activities that a Canadian entity engages in that consists of the activities referred to in that paragraph (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the Canadian entity that is in respect of the particular activities,
Cis the total assets of the Canadian entity,
Dis the part of the total revenue of the Canadian entity that is derived from the particular activities, and
Eis the total revenue of the Canadian entity.

Portion of entity's business in Canada -- par. 522.19(1)(a) of the Act

6. For the purpose of paragraph 522.19(1)(a) of the Act, the prescribed manner of determining the portion of the business in Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on in Canada,
Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on in Canada,
Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on in Canada, and
Eis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on in Canada.

Portion of entity's business outside Canada -- par. 522.19(1)(b) of the Act

7. For the purpose of paragraph 522.19(1)(b) of the Act, the prescribed manner of determining the portion of the business outside Canada, of a foreign bank or other entity, that consists of one or more of the activities referred to in that paragraph (in this section referred to as "particular activities") is to determine it as a percentage in accordance with the formula

A × 100%
where A is the greater of the fraction B/C and the fraction D/E,
where
Bis the part of the total assets of the foreign bank or other entity that is in respect of the particular activities that the foreign bank or other entity engaged in or carried on outside Canada,
Cis the part of the total assets of the foreign bank or other entity that is in respect of its business that it engaged in or carried on outside Canada,
Dis the part of the total revenue of the foreign bank or other entity that is derived from the particular activities that the foreign bank or other entity engaged in or carried on outside Canada, and
Eis the part of the total revenue of the foreign bank or other entity that is derived from its business that it engaged in or carried on outside Canada.

COMING INTO FORCE

Coming into force

8.* These Regulations come into force on the day on which section 978 of the Bank Act, as enacted by section 183 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.

*[Note: Regulations in force October 24, 2001, see SI/2001-102.]