Vol. 136, No. 6 — March 13, 2002
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Registration |
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SOR/2002-103 28 February, 2002 |
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BANK ACT |
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Name Use (Affiliates of Banks, or Bank Holding Companies,
that Are Not Widely Held) Regulations |
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P.C. 2002-274 28 February, 2002 |
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Her Excellency the Governor General in Council, on the recommendation
of the Minister of Finance, pursuant to subsection 983(16) (see
footnote a) of the Bank Act(see
footnote b) , hereby makes the annexed Name Use
(Affiliates of Banks, or Bank Holding Companies, that Are Not Widely
Held) Regulations. |
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NAME USE (AFFILIATES OF BANKS,
OR BANK HOLDING COMPANIES,
THAT ARE NOT WIDELY
HELD) REGULATIONS |
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INTERPRETATION |
Definitions
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1. The following definitions apply in these Reg-ulations. |
"Act"
« Loi » |
"Act" means the Bank Act.
|
| "exemption order" « arrêté d'exemption » |
"exemption order" has the same meaning as in subsection 507(1) of the Act. |
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APPLICATION |
| Application |
2. These Regulations do not apply to an entity
that is
(a) a bank or a bank holding company;
(b) a subsidiary of a bank or of a bank holding company;
(c) a Canadian entity that
(i) is a non-bank affiliate of a foreign bank, as that term is defined
in subsection 507(1) of the Act, and
(ii) is controlled by a foreign bank that is not the subject of an
exemption order or by an entity associated with a foreign bank that
is not the subject of an exemption order;
(d) an authorized foreign bank;
(e) a foreign bank in respect of which an exemption order
has not been made; or
(f) an entity that is associated, within the meaning of section
507 of the Act, with a foreign bank that is not the subject of an
exemption order. |
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ENTITIES AFFILIATED WITH A BANK |
| Permitted use |
3. (1) Subject to section 7, no entity affiliated
with a bank commits an offence under subsection 983(2) of the Act
by reason only that the entity uses the name of the bank in the entity's
corporate name or in a name under which the entity carries on business,
so long as the entity does not use the word "bank", "banker" or "banking"
in its corporate name or in a name under which it carries on business. |
| Permitted use |
(2) Subject to section 7, no entity affiliated with a bank commits
an offence under subsection 983(2) of the Act by reason only that
the entity uses any identifying mark, logogram or insignia of the
bank in carrying on the entity's business, so long as the entity does
not use any identifying mark, logogram or insignia that includes the
word "bank", "banker" or "banking". |
| Use in describing relationship with affiliate |
4. Subject to section 7, no entity affiliated with
a bank commits an offence under subsection 983(2) of the Act by reason
only that the entity uses the name of the bank in a description of
the entity's corporate relationship to the bank. |
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ENTITIES AFFILIATED WITH
A BANK HOLDING COMPANY |
| Permitted use |
5. (1) Subject to section 7, no entity affiliated
with a bank holding company commits an offence under subsection 983(3)
of the Act by reason only that the entity uses the name of the bank
holding company in the entity's corporate name or in a name under
which the entity carries on business, so long as the entity does not
use the word "bank", "banker" or "banking" in its corporate name or
in a name under which it carries on business. |
| Permitted use |
(2) Subject to section 7, no entity affiliated with a bank holding
company commits an offence under subsection 983(3) of the Act by reason
only that the entity uses any identifying mark, logogram or insignia
of the bank holding company in carrying on the entity's business,
so long as the entity does not use any identifying mark, logogram
or insignia that includes the word "bank", "banker" or "banking". |
| Use in describing relationship with affiliate |
6. Subject to section 7, no entity affiliated with
a bank holding company commits an offence under subsection 983(3)
of the Act by reason only that the entity uses the name of the bank
holding company in a description of the entity's corporate relationship
to the bank holding company. |
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CONDITIONS |
| Conditions |
7. (1) Sections 3 and 4 apply to an entity that
is affiliated with a bank, and sections 5 and 6 apply to an entity
that is affiliated with a bank holding company, only if the entity
complies with the following conditions:
(a) the entity does not, in Canada, engage in the business
of accepting deposit liabilities;
(b) the entity does not, in Canada, represent to the public
that any instrument issued by it is a deposit or that any liability
incurred by it is a deposit; and
(c) if the entity carries on as part of its business the
provision of financial services and borrows money in Canada from the
public through the issue of instruments in denominations of less than
$150,000 or by borrowing from a person in an amount of less than $150,000,
the entity discloses that
(i) it is not a member institution of the Canada Deposit Insurance
Corporation,
(ii) the liability incurred by it through the borrowing is not a deposit,
and
(iii) it is not regulated as a financial institution in Canada. |
| Means of disclosure |
(2) The disclosure referred to in paragraph (1)(c) must
be in a prospectus, information circular or other offering document
related to the borrowing or in a similar document related to the borrowing
or, if there is no such document, in a statement delivered to the
lender. |
| Application |
(3) The conditions set out in subsection (1) do not apply to an
entity that is
(a) a trust or loan corporation incorporated under a federal
or provincial law;
(b) an association to which the Cooperative Credit Associations
Act applies; or
(c) a cooperative credit society incorporated or formed,
and regulated, by or under a provincial law. |
| Application |
(4) The conditions set out in paragraph (1)(c) do not apply
to an entity that is
(a) an insurance company or fraternal benefit society incorporated
or formed by or under a federal or provincial law;
(b) an insurance holding company;
(c) an entity that is controlled by an insurance holding
company or that an insurance holding company has a substantial investment
in; or
(d) an entity that is incorporated or formed by or under
a federal or provincial law and that is primarily engaged in dealing
in securities, including portfolio management and investment counselling. |
| Subsequent use by bank or bank holding company |
(5) The conditions set out in subsection (1) do not apply in respect
of the use by an entity of a name that, before being used by the bank
or bank holding company, as the case may be, was already used by the
entity, or by an entity affiliated with it, in the corporate name
of the entity or affiliate or in a name under which the entity or
affiliate carries on business. |
| Subsequent use by bank or bank holding company |
(6) The conditions set out in subsection (1) do not apply in respect
of the use by an entity of an identifying mark, logogram or insignia
that, before being used by the bank or bank holding company, as the
case may be, was already used by the entity, or by an entity affiliated
with it, in carrying on the business of the entity or affiliate. |
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COMING INTO FORCE |
| Coming into force |
8. These Regulations come into force on the day
on which they are registered. |
S.C. 2001, c. 9, s. 183
S.C. 1991, c. 46
