| Contents |
| Section |
| Part 1 — Interpretation and Application |
| |
1 |
Definitions and interpretation |
| |
2 |
Company Act and Business Corporations Act apply to financial institutions only as specified in this Act |
| |
3 |
Application of Company Act to trust companies and insurance companies |
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4 |
Application of Company Act to special Act insurers |
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5 |
Application of Company Act to credit unions |
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6 |
Repealed |
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7 |
Statement of particulars |
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8 |
Pre-existing trust company |
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9 |
General rules respecting Company Act interpretation |
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10 |
Specific rules respecting Company Act interpretation |
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10.1 |
Specific rules respecting Business Corporations Act application to extraprovincial corporations |
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11 |
This Act paramount |
| Part 2 — Incorporation, Significant Changes and Winding Up |
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Division 1 — Incorporation and Significant Changes |
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12 |
Application for incorporation |
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13 |
Articles |
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14 |
Cumulative voting for directors |
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15 |
Registration documents |
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16 |
Evidence of incorporation |
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17 |
Conclusiveness of certificate |
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18 |
Consent to incorporation |
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19 |
Power and capacity of trust companies and insurance companies |
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20 |
Preliminary activities |
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21 |
Conversion of special Act insurance company |
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22 |
Liabilities unaffected by conversion |
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23 |
Transfer of incorporation to British Columbia |
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24 |
Transfer of incorporation from British Columbia |
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25 |
Effect of continuation |
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26 |
Amalgamation permitted |
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27 |
Consent of commission to amalgamation |
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28 |
Consent of commission to compromise, acquisition, disposition |
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29 |
Requirements for consent |
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30 |
Name |
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31 |
False representation prohibited |
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32 |
Director's application to Supreme Court — commission is party |
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33 |
Commission's consent |
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Division 2 — Dissolution and Winding Up of Trust Companies and Insurance Companies |
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34 |
Commission's consent required on "striking off" or "restoration" |
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35 |
Notice to superintendent required on voluntary dissolution or winding up |
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36 |
Winding up by Supreme Court order — commission is party |
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37 |
Unclaimed or undistributed assets |
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38 |
Winding up on direction of commission |
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39 |
Filing quarterly statements and producing records |
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40 |
Examination of trust and insurance companies being wound up |
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Division 3 — Special Provisions Respecting Insurance Companies Ceasing Business or Winding Up |
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41 |
Provisions for subsisting contracts of insurance |
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42 |
Reinsurance arranged by liquidator |
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43 |
Rights of the insured on reinsurance |
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44 |
Termination if reinsurance is not arranged |
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45 |
Liquidator's duty to give notice |
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46 |
Provision for payment of losses, preferred claims and unearned premiums |
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47 |
Endowment and life funds distributed |
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Division 4 — Ownership of Trust and Insurance Companies |
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48 |
Definitions and interpretation for Division |
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49 |
Determination of base level ownership percentage |
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50 |
Share acquisition restrictions |
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51 |
Grounds for refusal of consent to major share acquisition |
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52 |
Reporting requirement |
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53 |
Shares acquired in contravention of section 50 not registrable |
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54 |
Prohibition on dividends |
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55 |
No voting rights if excess shareholdings |
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56 |
Validity of transfer of voting shares |
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57 |
Directors' bylaws — members' declarations |
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58 |
Commission may require declaration of share ownership |
| Part 3 — Business Authorization and Business |
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Division 1 — Business Authorization of Financial Institution |
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59 |
Commencement of business |
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60 |
Business authorizations for corporations now in business |
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61 |
Application for business authorization |
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62 |
Conditions on business authorization |
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63 |
Certificate of business authorization |
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64 |
Voluntary revocation of business authorization |
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Division 2 — Operation of Financial Institutions |
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65 |
Authorized business |
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66 |
Membership in insurance plan |
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67 |
Capital and liquidity of financial institutions |
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68 |
Repealed |
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69 |
Restriction on right to appoint receiver |
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Division 3 — Trust Business |
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70 |
Unauthorized trust business by corporations prohibited |
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71 |
Repealed |
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72 |
Common trust funds authorized |
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73 |
Extent of liability |
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74 |
Execution of trusts |
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Division 4 — Insurance Business |
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75 |
Unauthorized insurance business prohibited |
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76 |
Exceptions |
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77 |
Reserves |
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78 |
Reinsurance |
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79 |
Rebates of premiums prohibited |
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80 |
Separation of class funds of insurance company |
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Division 5 — Deposits and Borrowing of Trust Companies and Credit Unions |
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81 |
Unauthorized deposit business prohibited |
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82 |
Deposits in credit unions |
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83 |
Deposits from persons unable to contract |
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84 |
Disposition of deposits |
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85 |
Inactive deposits |
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86 |
Limitation on lending |
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87 |
Subordinated notes |
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Division 6 — Marketing of Financial Products |
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88–90 |
Repealed |
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91 |
Disclosure of identity in advertising, etc |
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92 |
Insurers to file policy forms |
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93 |
Prohibition against unfair forms of contract |
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94 |
Coercive tied selling prohibited |
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95 |
Repealed |
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96 |
Substitute action of commission |
| Part 4 — Corporate Governance |
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Division 1 — Directors and Officers of Financial Institutions |
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97 |
Number of directors and unaffiliated directors |
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98 |
First directors of trust companies and insurance companies |
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99 |
Removal of directors and officers |
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100 |
Credit union directors ceasing to hold office |
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101 |
Standard of care for directors and officers |
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102 |
Indemnification of directors and officers |
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103 |
Quorum and unaffiliated directors |
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104 |
Misuse of confidential information |
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105 |
Information required of directors and senior officers |
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106 |
Meeting requested by auditor |
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107 |
Meeting requested by commission |
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108 |
Director's statement on own resignation or pending removal |
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109 |
Circulation of director's statement |
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110 |
Directors' remuneration |
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111 |
Committees |
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112 |
Conduct review committee |
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Division 2 — Auditors and Audit Committees of Financial Institutions |
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113 |
Auditor |
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114 |
Auditor may be a depositor |
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115 |
Audit committee and unaffiliated directors |
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116 |
Auditor has right to attend directors' meetings |
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117 |
Appointment and removal of auditor |
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118 |
Report to accounting body |
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119 |
Resignation of auditor |
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120 |
Auditor appointment for subsidiary |
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121 |
Amendment of financial statements and report |
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122 |
Access to information |
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123 |
Report to directors |
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124 |
Additional reporting |
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125 |
Additional auditor |
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126 |
No liability |
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Division 3 — Books, Records, Returns and Financial Statements of Financial Institutions |
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127 |
Filings |
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128 |
Financial statements |
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129 |
Accounting principles |
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130 |
Public access to financial information |
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131 |
Financial year end |
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132 |
Records filed with registrar |
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133 |
Location of records |
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134 |
Repealed |
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Division 4 — Investments and Lending of Financial Institutions |
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135 |
Investment and loan committee |
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136 |
Investment and loan standards |
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137 |
Commission's powers over investment and lending policy |
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138 |
Compliance with investment and lending limits |
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139 |
Credit unions not permitted to invest in other credit unions |
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140 |
Other authorized loans, investments and activities of subsidiaries |
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141 |
Investment in a corporation |
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142 |
Other authorized investments |
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143 |
Disposal of investments |
| Part 5 — Related Parties |
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144 |
Interpretation and designation of related parties |
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145 |
When related party transactions are permitted |
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146 |
Conduct review committee's power to approve other transactions |
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147 |
When commission may consent to related party transactions |
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148 |
Restrictions on self dealing as a fiduciary |
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149 |
Disclosure by related parties |
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150 |
Voidable transactions |
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151 |
Derivative action |
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152 |
Liability arising from related party transactions |
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153 |
Burden of proof |
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154 |
Reporting by auditor |
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155 and 156 |
Repealed |
| Part 6 — Regulation of Other Persons |
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Division 1 — Extraprovincial Corporations |
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157 |
Definition of "primary jurisdiction" |
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158 |
Application of this Division |
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159 |
Authorized business |
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160 |
Application for business authorization |
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161 |
Name |
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162 |
Records |
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163 |
Annual audited statements required |
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164 |
Requirement for notice of regulatory action outside British Columbia |
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165 |
Examination of extraprovincial corporations |
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166 |
Amalgamation of extraprovincial corporations |
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167 |
Notice of ceasing business |
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Division 2 — Insurance Agents and Adjusters |
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168 |
Definitions for Division |
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169 |
Exercise of rights under licence |
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170 |
Nominees |
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171 |
Prohibition of unlicensed agents and salespersons |
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172 and 173 |
Repealed |
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174 |
Issue of licences |
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175 |
Repealed |
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176 |
Insurance applications to be accepted only from holders of licences |
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177 |
Selling offences |
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178 |
Payment of commission to unlicensed agents prohibited |
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179 |
Persons who may negotiate settlement of personal injury claim |
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180 |
Prohibition of unlicensed adjusters |
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181–185 |
Repealed |
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Division 3 — Reciprocal Exchanges for Insurance |
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186 |
Interpretation |
| |
187 |
Permit for reciprocal insurance |
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Division 4 — Mutual Fire Insurance Companies |
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188 |
Definition |
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189 |
Application |
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Division 5 — Societies Engaged in Insurance |
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190 |
Definition of society |
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191 |
Deemed business authorization for certain existing societies |
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192 |
Provisions applicable |
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193 |
Certain other existing societies exempt |
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194 |
When society not entitled to receive business authorization |
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195 |
Actuarial certificates |
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196 |
Limit of insurance money payable |
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197 |
Amendment of charter |
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198 |
Society operating outside British Columbia |
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199 |
Societies |
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200 |
Provisions applicable to certain societies |
| Part 7 — Administration of the Regulation of Financial Institutions |
| |
Division 1 — Financial Institutions Commission |
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201 |
Financial Institutions Commission |
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202 |
Constitution of commission |
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202.1 |
Application of Administrative Tribunals Appointment and Administration Act to commission |
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203 |
Panels |
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204 |
Commission is subject to direction |
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205 |
Staff |
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206 |
Requirement to insure |
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207 |
Superintendent of Financial Institutions |
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208 |
Power to require undertakings and make agreements |
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209 |
Capacity outside British Columbia |
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210 |
Examinations, audits, inspections |
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211 |
Superintendent may require information |
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212 |
Examination |
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213 |
Inquiries |
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214 |
Special examination |
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215 |
Investigation |
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216 |
Immunities, witnesses on a special examination or on an investigation |
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217 |
Extension of time |
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218 |
Confidential information |
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219 |
Agreements with other jurisdictions |
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Division 2 — Insurance Council of British Columbia |
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220 |
Establishment of the Insurance Council of British Columbia |
| |
221 |
Alternates |
| |
222 |
Executive director |
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223 |
Committees |
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224 |
Voting |
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225 |
Meetings |
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225.1 |
Rules of council |
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225.2 |
Procedures for and availability of rules |
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225.3 |
Regulation prevails over council rule |
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226 |
Administrative policies |
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227 |
Duties of council |
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228 and 229 |
Repealed |
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230 |
Effect of a transfer of powers to superintendent |
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231 |
Council may suspend, cancel or restrict licences and impose fines |
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232 |
Investigation |
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232.1 |
Powers on investigation |
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233 and 234 |
Repealed |
| |
Division 3 — Hearings and Appeals |
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235 |
Orders, consents and refusals to be in writing |
| |
236 |
Power to impose conditions |
| |
237 |
Hearing requirements |
| |
238 |
Summary procedure — superintendent or council |
| |
238.1 |
Summary procedure — commission |
| |
239 |
Public hearing |
| |
240 |
Witnesses at hearings |
| |
241 |
Costs of investigation |
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241.1 |
Assessment of costs |
| |
242 |
Appeal from a decision of the superintendent or council |
| |
242.1 |
Financial Services Tribunal |
| |
242.2 |
Practice and procedure |
| |
242.3 |
Judicial review |
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242.4 |
Appeal from a decision of the commission |
| |
243 |
Immunities |
| Part 8 — Sanctions |
| |
Division 1 — General Sanctions |
| |
244 |
Commission's order to cease or remedy |
| |
245 |
Order to freeze property |
| |
246 |
Order for compliance |
| |
247 |
Valuation of assets and insurance contracts |
| |
248 |
Supervision of central credit union |
| |
249 |
Revocation of business authorization |
| |
250 |
Notice of revocation of business authorization |
| |
251 |
Appointment of receiver, etc |
| |
Division 2 — Offences and Penalties |
| |
252 |
Offences |
| |
253 |
Penalties |
| |
253.1 |
Administrative penalties |
| |
253.2 |
Limitation on proceedings |
| |
253.3 |
Failure to pay administrative penalty |
| |
254 |
Remedies preserved |
| |
255 |
Limitation period |
| |
256 |
Court order to comply |
| |
257 |
Restitution |
| |
258 |
Innocent third parties |
| |
259 |
Remedy of irregularities |
| Part 9 — Deposit Insurance and Stabilization of Credit Unions |
| |
260 |
Definitions and interpretation for Part |
| |
Division 1 — Credit Union Deposit Insurance Corporation of British Columbia |
| |
261 |
Credit Union Deposit Insurance Corporation of British Columbia |
| |
262 |
General powers of the deposit insurance corporation |
| |
263 |
Accounting records |
| |
264 |
Appointment of auditor |
| |
265 |
Auditor's report |
| |
Division 2 — Deposit Insurance |
| |
266 |
Guarantee of credit union deposits |
| |
267 |
Fund |
| |
268 |
Contributions to fund |
| |
269 |
Issue of debentures |
| |
270 |
Redemption of debentures |
| |
271 |
Fund impaired |
| |
272 |
Investment by deposit insurance corporation |
| |
273 |
Acts not applicable |
| |
274 |
Fund protection symbol |
| |
Division 3 — Stabilization |
| |
275 |
Supervision of credit union |
| |
276 |
Duration of supervision |
| |
277 |
Supervision powers |
| |
278 |
Administrator's powers |
| |
279 |
Administrator |
| |
280 |
Financial assistance |
| |
Division 4 — Stabilization Authority |
| |
281 |
Stabilization authority defined |
| |
282 |
Designation |
| |
283 |
Mandatory membership |
| |
284 |
Revocation of stabilization authority status and delegated powers |
| |
285 |
Commission may delegate to stabilization authority |
| |
286 |
Stabilization authority is subject to direction |
| |
287 |
Advance from fund to stabilization authority |
| |
288 |
Annual report of stabilization authority |
| Part 10 — Regulations and Transition |
| |
Division 1 — Regulations |
| |
289 |
Regulations |
| |
290 |
Transfer of disciplinary powers |
| |
Division 2 — Transitional Provisions |
| |
291 |
Validity of loans |
| |
292 |
Validity of credit union amalgamations before June 25, 1975 |
| |
293 |
Variation of agreements |
| Part 11 — Review of Act |
| |
294 |
Review of Act |