Name Use (Foreign Banks) Regulations

SOR/2001-407

Registration 4 October, 2001

BANK ACT

Name Use (Foreign Banks) Regulations

P.C. 2001-1778 4 October, 2001

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 978^a and subsection 983(16)^a of the Bank Act^b, hereby makes the annexed Name Use (Foreign Banks) Regulations.

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

NAME USE (FOREIGN BANKS) REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

"Act" « Loi »

"Act" means the Bank Act. (Loi)

"exemption order" « arrêté d'exemption »

"exemption order" has the same meaning as in subsection 507(1) of the Act. (arrêté d'exemption)

PERMITTED USE IN DESCRIBING CERTAIN RELATIONSHIPS

Foreign bank and bank

2. For the purpose of paragraph 983(4)(f) of the Act, a foreign bank may use the word "bank", "banker" or "banking" without condition in describing its corporate relationship with a bank if the foreign bank

(a) is not the subject of an exemption order; or

(b) is the subject of an exemption order and has controlled the bank since before February 7, 2001.

Foreign bank and bank holding company

3. For the purpose of paragraph 983(4)(f) of the Act, a foreign bank that is not the subject of an exemption order may use the word "bank", "banker" or "banking" without condition in describing its corporate relationship with a bank holding company.

Entity associated with a foreign bank and bank or bank holding company

4. For the purpose of paragraph 983(4)(f) of the Act, an entity may use the word "bank", "banker" or "banking" without condition in describing its corporate relationship with a bank or a bank holding company if the entity

(a) is not a foreign bank;

(b) is not controlled by a bank or a bank holding company; and

(c) is associated with a foreign bank that is not the subject of an exemption order.

Prescribed Canadian entity

5. (1) For the purpose of paragraph 983(4)(g) of the Act, a Canadian entity is prescribed if it

(a) is a non-bank affiliate of a foreign bank as defined in subsection 507(1) of the Act, other than a bank holding company or an entity that is controlled by a bank holding company or in which a bank holding company has a substantial investment; and

(b) is controlled by a foreign bank or by an entity, other than a bank or bank holding company, associated with a foreign bank.

Prescribed Canadian entity and foreign bank

(2) For the purpose of paragraph 983(4)(g) of the Act, in a description of the corporate relationship of a prescribed Canadian entity with a foreign bank, the word "bank", "banker" or "banking" may be used

(a) without condition if the foreign bank is an authorized foreign bank, a foreign bank that is the subject of an exemption order or a foreign bank that is associated with another foreign bank that is the subject of an exemption order; and

(b) in any other case, if the description includes a statement that the foreign bank is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

Prescribed Canadian entity and entity associated with foreign bank

(3) For the purpose of paragraph 983(4)(g) of the Act, in a description of the corporate relationship of a prescribed Canadian entity with an entity -- other than a bank, a bank holding company, an entity controlled by a bank or a bank holding company, or a foreign bank -- that is associated with a foreign bank that is not the subject of an exemption order, the word "bank", "banker" or "banking" may be used

(a) without condition if the entity associated with a foreign bank is one described in any of paragraphs 468(1)(c) to (i) of the Act; and

(b) in any other case, if the description includes a statement that the entity associated with a foreign bank is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

OTHER PERMITTED USES

Prescribed entity

6. (1) For the purpose of subsection 983(10) of the Act, all entities that are associated with a foreign bank within the meaning of section 507 of the Act are prescribed.

Prescribed circumstances

(2) For the purpose of paragraph 983(10)(b) of the Act, each of the following circumstances is prescribed:

(a) when the Canadian entity is controlled by the foreign bank with which it is associated and that foreign bank is the subject of an exemption order;

(b) when the Canadian entity is controlled by the foreign bank with which it is associated and that foreign bank is not the subject of an exemption order; and

(c) when the Canadian entity and a prescribed entity -- other than a bank or bank holding company or an entity controlled by a bank or a bank holding company -- that controls it are associated with the same foreign bank and that foreign bank is not the subject of an exemption order.

Term and condition re use of name of foreign bank

(3) For the purpose of paragraph 983(10)(b) of the Act, the prescribed term and condition for the use of the name, identifying mark, logogram or insignia of the foreign bank in the circumstances described in paragraph (2)(a) is that the foreign bank must approve the use.

Terms and conditions re use of name of foreign bank

(4) For the purpose of paragraph 983(10)(b) of the Act, the prescribed terms and conditions for the use of the name, identifying mark, logogram or insignia of the foreign bank in the circumstances described in paragraph (2)(b) are the following:

(a) the foreign bank must approve the use; and

(b) unless the foreign bank is an authorized foreign bank, the Canadian entity must disclose, in conjunction with the use, that the foreign bank is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

Terms and conditions re use of name of prescribed entity

(5) For the purpose of paragraph 983(10)(b) of the Act, the prescribed terms and conditions for the use of the name, identifying mark, logogram or insignia of the prescribed entity in the circumstances described in paragraph (2)(c) are the following:

(a) the prescribed entity must approve the use; and

(b) unless the prescribed entity is one described in any of paragraphs 468(1)(c) to (i) of the Act, the Canadian entity must disclose, in conjunction with the use, that the prescribed entity is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

Prescribed entity

7. For the purpose of subsection 983(10.1) of the Act, the entities prescribed are those that are associated, within the meaning of section 507 of the Act, with a foreign bank that is not the subject of an exemption order.

COMING INTO FORCE

Coming into force

8.* These Regulations come into force on the day on which subsection 983(2) 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.]