Vol. 140, No. 40 — October 7, 2006

By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law

Statutory authority

Canada Deposit Insurance Corporation Act

Sponsoring agency

Canada Deposit Insurance Corporation

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the By-law.)

Description

The Board of Directors of the Canada Deposit Insurance Corporation ("CDIC") made the Differential Premiums By-law (the "By-law") on March 3, 1999, pursuant to subsection 21(2) and paragraph 11(2)(g) of the Canada Deposit Insurance Corporation Act (the "CDIC Act"). Subsection 21(2) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors CDIC will consider in classifying members into categories, establishing the procedures CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of, the annual premium applicable to each category. The CDIC Board of Directors has amended the By-law on January 12 and December 6, 2000, July 26, 2001, March 7, 2002, March 3, 2004, February 9 and April 15, 2005, and February 8, 2006.

CDIC annually reviews this By-law to ensure that it remains up to date. As a result of the review, it was noted that technical amendments need to be made to items 6 and 7 of the Schedule 2, Part 2, Reporting Form to reflect line item reference changes in the Financial Institution Committee's forms titled Securities and Consolidated Monthly Balance Sheet. The changes are reflected in sections 1, 3 and 4 of the proposed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law (the "Amending By-law").

In addition, in the amending by-law made in February of 2006, the reference to subsection 28(1) of the By-law contained a minor error in the English version of the amending clause. It contained the instruction to replace a formula with text. There is no formula in subsection 28(1). The French version had properly referenced replacing text with text. In order to ensure that there is never any question as to the enforceability of subsection 28(1), it was recommended by the Regulations Section of the Department of Justice that the subsection be repealed and replaced with the correct introductory amending clause. This change is reflected in section 1 of the proposed Amending By-law.

The changes are technical in nature.

Alternatives

There are no available alternatives. The CDIC Act specifically provides that the criteria or factors to be taken into account in determining the category in which a member institution is classified and fixing or establishing the method of determining the amount of the annual premium applicable to each category may only be made by by-law.

Benefits and costs

No additional costs should be attributed directly to these changes.

Consultation

As the changes are technical in nature, only consultation through pre-publication in the Canada Gazette is necessary.

Compliance and enforcement

There are no compliance or enforcement issues.

Contact

Sandra Chisholm, Director, Insurance, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5, 613-943-1976 (telephone), 613-992-8219 (fax), schisholm@cdic.ca (email).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a) and subsection 21(2) (see footnote b) of the Canada Deposit Insurance Corporation Act, proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.

Interested persons may make representations concerning the proposed By-law within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Sandra Chisholm, Director, Insurance, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5 (e-mail: schisholm@cdic.ca).

Ottawa, September 28, 2006

GUY L. SAINT-PIERRE
President and Chief Executive Officer
Canada Deposit Insurance Corporation

BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION DIFFERENTIAL PREMIUMS BY-LAW

AMENDMENTS

1. Subparagraph 15(1)(e)(iii) of the Canada Deposit Insurance Corporation Differential Premiums By-law (see footnote 1) is repealed.

2. Subsection 28(1) of the English version of the By-law is replaced by the following:

28. (1) For the purposes of this section, "examiner's rating" in respect of a member institution means the rating on a scale of one to five that is assigned to the institution by the examiner in the course of carrying out the examiner's duties.

3. Element 6.3 of item 6 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:

4. Paragraph (b) under the heading "Assets for Years 1 to 4" in item 7 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:

(b) the total of the amounts set out in the column "Total" for items 3(a)(i)(A)(I) to (IX) (Securitized Assets — Off-Balance Sheet — Institution's own assets — Traditional securitizations) of Section I — Memo Items of the Consolidated Monthly Balance Sheet;

COMING INTO FORCE

5. This By-law comes into force on the day on which it is registered.

[40-1-o]

Footnote a

R.S., c. 18 (3rd Supp.), s. 51

Footnote b

S.C. 1996, c. 6, s. 27

Footnote 1

SOR/99-120

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.

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