2004 Legislative Session: 5th Session, 37th Parliament
FIRST READING
The following electronic version is for informational
purposes only.
The printed version remains the official version.
HONOURABLE GARY COLLINS
MINISTER OF FINANCE
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Credit Union Incorporation Act
1 Section 1 of the Credit Union Incorporation Act, R.S.B.C. 1996, c. 82, is amended
(a) by repealing the definition of "credit union" and substituting the following:
"credit union" means a corporation incorporated as a credit union under this Act, the Credit Union Act, R.S.B.C. 1979, c. 79, or a former Credit Unions Act, and includes a central credit union and a credit union continued into British Columbia under section 15.1, but does not include a credit union continued under the laws of another jurisdiction under section 15.2; ,
(b) in the definition of "deposit business" by adding "or soliciting for deposit" after "receiving on deposit", and
(c) by adding the following definition:
"extraprovincial credit union" means a credit union incorporated by or under the laws of a jurisdiction other than British Columbia and that is, under those laws, licensed, registered or in any way authorized to carry on activities that are substantially the same as trust business or deposit business or both; .
2 Section 4 is amended
(a) by repealing subsection (5), and
(b) in subsection (7) by striking out ", other than a central credit union or an entity described in section 67 (2) (b) of the Financial Institutions Act that is designated by regulation under that Act," and substituting "other than a central credit union,".
3 Section 5 is amended
(a) in subsection (5) by striking out "223" and substituting "223 (1)",
(b) in subsection (5) by striking out ' "registrar and Superintendent of Financial Institutions"' and substituting ' "commission"', and
(c) by repealing subsection (6) and substituting the following:
(6) The reference to "the minister" in sections 271 (1) and 287 of the Company Act must be read as a reference to "the commission".
4 Section 11 is amended
(a) by repealing subsection (2) and substituting the following:
(2) The registrar must not register the constitution and rules of a credit union or enter its name in the register of financial institutions without first receiving the consent of the commission to the incorporation. ,
(b) in subsection (3) by striking out "and" at the end of paragraph (h) and by adding the following paragraphs:
(j) the commission is satisfied that
(i) the formation of the proposed credit union will be for the convenience and advantage of the members, and
(ii) the proposed credit union will be operated in a manner in which the investments and deposits of members will be safeguarded without likelihood of a claim on the fund, and
(k) the commission believes on reasonable grounds that it is not contrary to the public interest to consent to the incorporation. ,
(c) by repealing subsection (4), and
(d) in subsection (5) by striking out ", and on the request of the minister must conduct,".
5 Sections 15, 25 (2), 40 (2) and (3), 44 (8) (b), 64 (8), 65 (4), 69 (2), 74 (2), 76 (9), (10) and (11) and 98 (1) (a) are amended by striking out "superintendent" wherever it appears and substituting "commission".
6 The following sections are added to Division 2 of Part 2:
15.1 (1) Subject to this section, an extraprovincial credit union, if it appears to the registrar to be authorized to do so by the laws of the jurisdiction in which it is incorporated, may deliver to the registrar an instrument of continuation in duplicate continuing the extraprovincial credit union as if it had been incorporated under this Act.
(2) The instrument of continuation must
(a) set out prescribed matters,
(b) be executed under seal and signed by an officer or director of the extraprovincial credit union and verified by an affidavit of the person signing the instrument of continuation, and
(c) be accompanied by other material required by the registrar.
(3) The instrument of continuation must make the amendments to the charter of the extraprovincial credit union that are necessary to make the instrument conform to the laws of British Columbia and may make other amendments permitted under this Act as if the extraprovincial credit union were incorporated under this Act as a credit union.
(4) If the registrar receives from an extraprovincial credit union under subsection (1)
(a) an instrument of continuation that complies with subsections (2) and (3),
(b) the prescribed fees, and
(c) the consent of the commission and the deposit insurance corporation,
the registrar must file one duplicate of the instrument of continuation and issue to the extraprovincial credit union a certificate of continuation to which the registrar must affix the other duplicate.
(5) The commission must not consent under subsection (4) (c)
(a) unless
(i) the directors of the extraprovincial credit union have submitted to the commission
(A) the name and address of the extraprovincial credit union,
(B) the financial statements of the extraprovincial credit union,
(C) the constitution and rules proposed for the continued credit union, and
(D) a plan for the continued credit union
(I) specifying whether the business proposed to be carried on is deposit business or trust business or both deposit business and trust business,
(II) specifying the services that the continued credit union intends to offer to the public,
(III) describing in detail satisfactory to the commission the period within which the credit union will meet the requirements for being issued a business authorization under the Financial Institutions Act and specifying the preliminary activities, not being deposit business or trust business, that the credit union proposes to carry on during that period, and
(IV) containing other information required by the commission,
(ii) the commission approves the constitution and rules submitted under paragraph (a), and
(iii) each proposed director and senior officer of the continued credit union has completed and submitted to the commission a personal information return in the form established by the commission that discloses the information required by the commission, and
(b) the commission believes on reasonable grounds that it is in the public interest to consent to the continuation.
(6) In addition to the requirements under subsection (5), the commission must not give a consent referred to in subsection (4) (c) unless satisfied that the extraprovincial credit union, in its primary jurisdiction as defined in section 157 of the Financial Institutions Act, is licensed, registered or authorized to carry on deposit business or trust business.
(7) On and after the date in a certificate of continuation issued to an extraprovincial credit union under subsection (4), this Act applies to the continued credit union to the same extent as if it had been incorporated under this Act as a credit union.
(8) A business authorization that an extraprovincial credit union has immediately before the date that a certificate of continuation is issued to the extraprovincial credit union under this section continues in force on and after that date, subject to a subsequent surrender of the business authorization, and to any amendment or the suspension, revocation or cancellation of the business authorization, under this Act.
15.2 (1) A credit union, if authorized by
(a) a special resolution,
(b) the consent given by the commission and the deposit insurance corporation for the purpose of this section, and
(c) the laws of another jurisdiction,
may apply to the proper officer of that other jurisdiction for an instrument of continuation continuing the credit union as if it had been incorporated under the laws of that other jurisdiction.
(2) A credit union ceases to be a credit union under this Act on and after the date on which it is continued under the laws of the other jurisdiction and the credit union must promptly file with the registrar and the commission a copy of the instrument of continuation certified by the proper officer of the other jurisdiction.
15.3 All rights of creditors against the property, rights and assets of an extraprovincial credit union continued under section 15.1 as a credit union and all liens on its property, rights and assets are unimpaired by the continuation, and all debts, contracts, liabilities and duties of the credit union from then on attach to the continued credit union and may be enforced against it.
7 Section 38 is amended
(a) in subsections (1) and (2) by striking out "the minister" wherever it appears and substituting "the commission", and
(b) by repealing subsection (3) and substituting the following:
(3) If the commission makes an order under this section, the references in sections 273, 274, 275 (2) (b), 278 (b), 279 (1) (a), 283 (1) (b) and (3), 286 (1), 288 (3) and 293 (3) of the Company Act as those sections apply for the purposes of this Act to the court or a court order must be read for the purposes of the winding up ordered by the commission as references to the commission or to a commission order.
8 Section 39 is amended by striking out "The superintendent" and substituting "The commission".
9 Section 69 (1) is repealed and the following substituted:
(1) Subject to subsection (2), a credit union may pay an allocation to a person
(a) in respect of the person's borrowing from the credit union in the year, on the terms to which the person is entitled or on which the person will receive payment of the allocation, computed at a rate or rates in relation to
(i) the amount of interest payable by the person on the money borrowed, or
(ii) the amount of money borrowed by the person,
(b) in respect of the person's money on deposit with the credit union in the year, on the terms to which the person is entitled or on which the person will receive payment of the allocation, computed at a rate or rates in relation to
(i) the amount of interest payable by the credit union to the person on the money on deposit, or
(ii) the amount of money on deposit to the credit of the person, and
(c) in respect of goods or services provided to the person in the year, computed at a rate or rates in relation to
(i) the quantity, quality or value or the goods or services provided by or to the person, or
(ii) the fees paid by the person for goods or services.
10 Section 72 is repealed and the following substituted:
72 The rules of the credit union may provide for voting in an election or on a resolution or a special resolution, or as to any other matter,
(a) by written vote, or
(b) by electronic means.
11 Section 76 (4) is amended
(a) in paragraph (a) by adding "and dated" after "be signed", and
(b) in paragraph (d) by adding "within 60 days of the first signing of the requisition by a requisitioning member" after "at the registered office of the credit union".
12 Section 81 is repealed and the following substituted:
81 With the consent of the commission and the deposit insurance corporation, a credit union may exercise its powers under this Act and the Financial Institutions Act outside British Columbia to the extent permitted under the laws of another jurisdiction.
13 Section 85 (1) is amended by striking out "the minister" and substituting "the commission".
14 Section 90 (2) is amended by striking out "approval" in both places and substituting "consent".
15 Section 93 (1) and (2) is repealed and the following substituted:
(1) An order of the commission under section 38 (1) or 76 (9) (a) or (b) must be in writing.
(2) A consent or refusal of a consent of the commission under section 11, 15, 15.1 (4) (c), 15.2 (1) (b), 16 (3), 20 (3), 44 (8), 81 (1) or 90 (2) must be in writing.
16 Section 94 is amended
(a) in subsection (1) by striking out "The minister, the commission or the superintendent" and substituting "The commission",
(b) in subsection (1) (a) by striking out "minister, the commission or the superintendent, as the case may be," and substituting "commission", and
(c) in subsection (1) (b) by striking out "by his, her or its own motion" and substituting "by the commission's own motion".
17 Section 95 is amended
(a) in subsection (1) (b) and (d) by striking out "93 (2) (a), (b) or (c)" and substituting "93 (2)",
(b) in subsection (1) (c) by striking out "by his, her or its own motion," and substituting "by the commission's own motion,",
(c) in subsection (1) by striking out "the minister, the commission or the superintendent, as the case may be," and substituting "the commission",
(d) by repealing subsection (2) and substituting the following:
(2) Not later than 14 days after receiving notice under subsection (1) of an intended action, a person directly affected, by delivering a notice in writing to the commission, may require a hearing before the commission. ,
(e) by repealing subsection (4), and
(f) in subsection (5) by striking out "the minister, the commission or the superintendent, as the case may be," and substituting "the commission".
18 Section 96 is amended
(a) in subsection (1) by striking out "or the superintendent", and
(b) in subsection (2) by striking out "or the superintendent" in both places and by striking out ", as the case may be,".
19 Section 97 (1) is amended by striking out "the commission, a panel of it or the superintendent" and substituting "the commission or a panel of it".
20 Section 98 (1) (a), (b) and (c) is repealed and the following substituted:
(a) a consent referred to in section 93 (2) that is given by the commission subject to conditions, or
(b) a refusal of the commission to give a consent referred to in section 93 (2).
21 Section 104 is amended by striking out "the superintendent." and substituting "the superintendent or the commission, whichever comes first."
22 Section 108 is amended by adding the following subsection:
(2.1) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations of the Lieutenant Governor in Council are contemplated by this Act.
23 The following Part is added:
Part 10 -- Review of Act
109 Every 10 years, the government must initiate a review of this Act to determine what changes, if any, should be made.
Financial Institutions Act
24 Section 1 (1) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended
(a) by repealing the definition of "credit union" and substituting the following:
"credit union" means a corporation incorporated as a credit union under the Credit Union Incorporation Act, the Credit Union Act, R.S.B.C. 1979, c. 79, or a former Credit Unions Act, and includes a central credit union and a credit union continued into British Columbia under section 15.1 of the Credit Union Incorporation Act, but does not include a credit union continued under the laws of another jurisdiction under section 15.2 of the Credit Union Incorporation Act; ,
(b) in the definition of "deposit business" by adding "or soliciting for deposit" after "receiving on deposit",
(c) by repealing the definition of "extraprovincial corporation" and substituting the following:
"extraprovincial corporation" means an extraprovincial credit union, extraprovincial insurance corporation or extraprovincial trust corporation; ,
(d) by adding the following definition:
"extraprovincial credit union" means a credit union that is incorporated by or under the laws of a jurisdiction other than British Columbia and that is, under those laws, licensed, registered or in any way authorized to carry on activities that are substantially the same as trust business or deposit business or both; ,
(e) in the definitions of "extraprovincial insurance corporation" and "insurance company" by striking out "the superintendent" and substituting "the commission",
(f) in the definition of "insurance association" by striking out "individuals" and substituting "persons", and
(g) in paragraph (a) of the definition of "trust company" by striking out ", deposit business or both,".
25 Section 1 (4) is amended by striking out "and" at the end of paragraph (a) and by repealing paragraph (b) and substituting the following:
(b) subject to paragraph (c), the provisions of the Company Act, R.S.B.C. 1996, c. 62, continue to apply, as though that Act had not been repealed, to and in respect of the deposit insurance corporation, and to every financial institution or extraprovincial corporation, in the manner and to the extent provided by this Act, and
(c) the reference in section 298 (3) (a) (ii) of the Company Act, R.S.B.C. 1996, c. 62, to "the Superintendent of Financial Institutions" must be read as a reference to "the Financial Institutions Commission".
26 Section 9 (5) is repealed.
27 Section 10 is amended
(a) in subsection (3) by striking out "223," and substituting "223 (1),",
(b) in subsection (3) by striking out "Superintendent of Financial Institutions" and substituting "superintendent",
(c) in subsection (6) by striking out "and in section 262 (4) of that Act",
(d) by adding the following subsection:
(8.1) The reference to "minister" in section 163 (1) (o) of the Company Act must be read as a reference to the "superintendent and the commission". , and
(e) by repealing subsection (15) and substituting the following:
(15) The references to "minister" in sections 212 (1) and (3), 245 (4), 271 (1) and 287 of the Company Act must be read as references to the "commission".
(15.1) The reference to "registrar" in section 262 (4) of the Company Act must be read as a reference to "commission".
28 Section 12 (1) (a) (i) is amended by striking out "or deposit business or both,".
29 Sections 12 (1) (b), 61 (1), (3), (4), (5) and (7), 187 (1) (a) and 193 (2) (a) are amended by striking out "in the prescribed form" and substituting "in the form established by the commission".
30 Section 18 is amended
(a) in subsection (1) by striking out "and of the minister",
(b) by repealing subsection (2) (b) (ii) and substituting the following:
(ii) specifying, in the case of an insurance company, whether the business proposed to be carried on is life insurance business, general insurance business or both, ,
(c) in subsection (2) (b) (iv) by striking out ", deposit business",
(d) in subsection (2) (b) (v) by striking out "prescribed additional information" and substituting "information required by the commission",
(e) by repealing subsection (3) and substituting the following:
(3) The commission must not consent to the incorporation of a trust company or an insurance company if the commission believes on reasonable grounds that it is not in the public interest to consent to the incorporation. , and
(f) in subsection (4) by striking out ", and on the request of the minister must conduct,".
31 Sections 18 (2) (e) and 29 (2) (c) are amended by striking out "the prescribed form and disclosing the prescribed information," and substituting "the form established by the commission and disclosing information required by the commission,".
32 Sections 23 (1) to (6) and 25 are amended by striking out "extraprovincial corporation" wherever it appears and substituting "extraprovincial insurance corporation or extraprovincial trust corporation".
33 Sections 23 (4) (c) and (5) and 27 are amended by striking out "and the minister".
34 Sections 26 (3) and (4), 32, 33, 34, 36, 47 (2) and (3), 48, 58, 61 (1) (b) and (3), 76 (3) and (5), 87 (1) (a), 92, 93, 96, 99 (2), (3) and (5), 107 (1), 109 (2), 117 (2), 118, 125, 138 (2) and (3), 141 (2) (c), 142, 143, 193 (2), 197, 226, 241 (2) and (3), 242 (3), 244 (3) and (4), 246, 247, 248 (1) (a), 251 and 252 (3) (a) are amended by striking out "superintendent" wherever it appears and substituting "commission".
35 Sections 28 (1), (2) and (3), 38 (1) to (3), 39 (a), 50, 51, 69, 214, 245 (1) (c), 248 (5) (b) and (c) and (6) and 249 (9) are amended by striking out "minister" wherever it appears and substituting "commission".
36 Section 29 is amended
(a) by repealing subsection (2) (a) (v) (A) and substituting the following:
(A) specifying, in the case of an insurance company, whether the business proposed to be carried on is life insurance business, general insurance business or both, ,
(b) in subsection (2) (a) (v) (C) by striking out ", deposit business",
(c) in subsection (2) (a) (v) (D) by striking out "any other prescribed information" and substituting "information required by the commission",
(d) in subsection (2) by striking out "and" at the end of paragraph (b), by adding ", and" at the end of paragraph (c) and by adding the following paragraph:
(d) the commission believes on reasonable grounds that it is in the public interest to consent to the continuation or amalgamation. ,
(e) by repealing subsection (3),
(f) by repealing subsection (4) and substituting the following:
(4) The commission must not consent under section 28 in respect of a compromise, arrangement, acquisition or disposition by reinsurance if the commission believes on reasonable grounds that it is not in the public interest to consent. , and
(g) in subsection (5) by striking out ", and on the request of the minister must conduct,".
37 Section 30 (1) is amended by striking out "or both trust business and deposit business".
38 Section 38 is amended
(a) in subsection (2) (d) by striking out "or deposit business", and
(b) in subsection (3) by striking out "the minister's" and substituting "the commission's".
39 Section 59 is amended
(a) by repealing subsection (1) and substituting the following:
(1) A trust company must not carry on trust business unless
(a) it is authorized to do so by a business authorization issued to it under this Division,
(b) it is carrying on business in accordance with section 70 (d), or
(c) it is authorized to carry on trust business without a business authorization by regulations under section 70 (e).
(1.1) A credit union must not carry on
(a) deposit business unless it is authorized to do so by a business authorization issued to it under this Division, or
(b) trust business unless it is authorized to do so by a business authorization issued to it under this Division or it is authorized by regulations under section 70 (e). , and
(b) by repealing subsection (3) and substituting the following:
(3) A business authorization issued to a trust company must be confined to trust business.
40 Section 60 (3) is repealed.
41 Section 61 is amended
(a) by repealing subsections (6) and (8) (c), and
(b) in subsection 8 (a) (ii) by striking out "section 68 (2)," and substituting "section 67 (1),".
42 Section 65 (1) (c) is repealed and the following substituted:
(c) business or an activity of a prescribed type.
43 Section 66 (1) is repealed.
44 Section 67 is repealed and the following substituted:
67 (1) A financial institution must at all times ensure that it has adequate liquid assets and an adequate capital base in relation to the business carried on by it, in accordance with the regulations.
(2) If the commission considers that the liquid assets or capital base of a financial institution are, or within one year will be, inadequate in relation to the business carried on by it whether or not the financial institution is complying with the regulations, the commission may order the financial institution to acquire additional liquid assets or increase its capital base in the amount and form and by the date specified in the order.
(3) Without first receiving the written consent of the commission, a trust company or an insurance company must not
(a) redeem or purchase or otherwise acquire shares issued by it, or
(b) declare a dividend, except a dividend in shares
if the redemption, purchase or other acquisition or the declaration would reduce the capital base of the financial institution to an amount less than the amount that constitutes an adequate capital base for that financial institution in accordance with the regulations.
45 Section 68 is repealed.
46 Section 70 is amended by striking out "or" at the end of paragraph (b), by adding ", or" at the end of paragraph (d) and by adding the following paragraph:
(e) a corporation that is carrying on a prescribed trust business or class of trust business or a prescribed corporation or class of corporations that is carrying on a prescribed trust business or class of trust business.
47 Section 75 (f) (i) is repealed.
48 Section 76 (2) is amended by striking out everything after "particulars of the contract" and substituting "and at the request of the Commissioner of Income Tax or of the commission, must provide the record to the Commissioner of Income Tax or commission as requested."
49 Section 79 (1) is repealed and the following substituted:
(1) A person, in relation to the sale of insurance, must not, directly or indirectly, pay or allow, or offer or agree to pay or allow, a rebate of premium or part of it or other consideration or thing of value intended to be a rebate of premium, unless the rebate of premium is less than a prescribed amount or percentage.
50 Section 81 (1) (a) and (b) is repealed and the following substituted:
(a) an extraprovincial trust corporation that has a business authorization to carry on deposit business,
(b) a credit union or extraprovincial credit union that has a business authorization to carry on deposit business, .
51 Sections 83, 84 (2) and (3), 85 (1.1), (2), (3), (4), (6) and (7) and 86 are amended by striking out "trust company or" wherever it appears.
52 Section 84 (1) is amended by striking out "deposits with a trust company or" and "that do not exceed $10 000".
53 Section 86 is amended by striking out "in contravention of section 67." and substituting "in contravention of the requirements of section 67 in respect of adequate liquid assets."
54 Section 87 (1) (b) is amended by striking out ", the deposit insurance corporation or a deposit insurer named by regulation for the purpose of section 61 (8) (c) (ii) or 66 (1) (b);" and substituting "or the deposit insurance corporation".
55 Sections 88 to 90 are repealed.
56 Section 94 is repealed and the following substituted:
94 A financial institution or person acting in a transaction with the approval of a financial institution must not place undue pressure on, or coerce, a person to obtain a product or service from another person, including the financial institution, its subsidiaries, affiliates or agents, as a condition of obtaining another product or service from the financial institution.
57 Section 95 is repealed.
58 Section 99 (2) (e) is repealed and the following substituted:
(e) is contravening or has contravened a written undertaking given under this Act, or .
59 Section 105 is repealed and the following substituted:
105 Before commencing duties, a director or senior officer of a financial institution must complete and submit to the superintendent a personal information return in the form established by the commission that discloses the information required by the commission.
60 Section 112 is amended
(a) in subsection (1) by striking out "at least 3 directors;" and substituting "at least 3 directors",
(b) in subsection (2) (a) by striking out "under section 90" and substituting "in prescribed circumstances", and
(c) in subsection (2) (b) by striking out "and ensuring compliance with section 95".
61 Section 124 is amended
(a) in subsection (1) by striking out "The superintendent" and substituting "The superintendent or commission",
(b) in subsection (1) (e) by striking out "the superintendent" and substituting "the superintendent or commission", and
(c) in subsection (2) by striking out "at a rate directed by the superintendent for the work required under subsection (1) by the superintendent." and substituting "at a rate directed by the commission for the work required under subsection (1) by the commission or superintendent."
62 Section 127 is amended
(a) in subsection (1) by striking out "Within 90 days" and substituting "Subject to subsection (1.1), within 90 days",
(b) in subsection (1) by striking out "a return in the prescribed form" and substituting "a return in the form established by the superintendent",
(c) by adding the following subsection:
(1.1) An insurance company whose business authorization is subject to the condition that the business of the insurance company is confined to reinsurance must, within 105 days after the end of its financial year in each year, file with the superintendent a return referred to in subsection (1) in respect of its reinsurance business. , and
(d) in subsection (3) by striking out "the prescribed form" and substituting "in the form established by the superintendent".
63 Section 131 is amended by adding the following subsection:
(4) Despite subsections (1) and (2), a financial institution may change its financial year end to October 31, if approved by the commission.
64 Section 133 is amended
(a) in subsection (1) by striking out "A financial institution must maintain in British Columbia," and substituting "A financial institution must maintain facilities that the superintendent considers satisfactory by which the superintendent may obtain access to,", and
(b) by repealing subsections (2) and (3).
65 Section 134 is repealed.
66 Section 136 is amended
(a) by repealing subsection (3) (a) and substituting the following:
(a) must recommend to the directors of the financial institution for their approval a written investment and lending policy that, for the financial institution and its subsidiaries, if any, the committee considers to
(i) be consistent with prudent standards,
(ii) comply with the regulations under subsection (5) and with sections 138 to 142,
(iii) be comprehensive in addressing all aspects of risk associated with the investments and loans of the financial institution, and
(iv) include mechanisms for measuring, limiting and managing risk. ,
(b) in subsection (4) by striking out ", consistently with the requirements of subsection (5),", and
(c) by repealing subsection (5) and substituting the following:
(5) A financial institution must ensure that the investment and lending policy established under subsection (4) contains the prescribed requirements.
67 Section 137 is repealed and the following substituted:
137 If the commission believes on reasonable grounds that the investment and lending policy established under section 136 (4)
(a) is inconsistent with prudent standards,
(b) is not in compliance with regulations under section 136 (5) and with sections 138 to 142,
(c) is not comprehensive in addressing all aspects of risk associated with the investments and loans of the financial institution, or
(d) does not include mechanisms for measuring, limiting and managing risk,
the commission may order the directors of the financial institution to review immediately the investment and lending policy and must specify in the order the grounds under paragraph (a), (b), (c) or (d).
68 Section 140 is repealed and the following substituted:
140 Section 138 (1) (a), (b) or (d) does not apply in respect of a prescribed type of loan or investment made in accordance with the regulations or a prescribed type of business or activity carried on by a subsidiary of a financial institution.
69 Section 141 is amended
(a) by repealing subsection (2) (a) and substituting the following:
(a) more than 10% of the voting shares in a corporation that carries on, or more than a 10% interest in another type of entity that carries on, one or more of a prescribed type of business or activity, , and
(b) by repealing subsection (3).
70 Part 5 is repealed and the following substituted:
Part 5 -- Related Parties
144 (1) In this Part, a "related party" of a financial institution means a person who
(a) is a director or senior officer of the financial institution or of the holding company of the financial institution or is acting in a similar capacity in respect of an unincorporated entity that controls the financial institution,
(b) is a member of a prescribed class of employees of the financial institution or the holding company of the financial institution,
(c) owns directly 10% or more of the non-voting shares in the financial institution, not counting any non-equity shares in the case of a credit union,
(d) owns or controls, directly or indirectly, 10% or more of any class of voting shares in the financial institution,
(e) is a sole practitioner who is an auditor of the financial institution,
(f) is actively engaged in auditing the financial institution and is a partner in a partnership that is an auditor of the financial institution,
(g) is the spouse of an individual who is a related party under paragraph (a), (b), (c), (d) or (j) or under subsection (2),
(h) is a child who is less than 18 years of age of an individual who is a related party under paragraph (a), (b), (c), (d) or (j) or under subsection (2),
(i) is a corporation in which a person who is a related party under paragraph (a), (b), (c), (d) or (j) or under subsection (2) has or controls, directly or indirectly, more than 50% of the votes that are attached to the outstanding voting shares of the corporation and that may be cast in the election of the directors, or
(j) is designated under subsection (3) as a related party,
but does not include,
(k) when used in relation to a credit union, a central credit union or an entity that is designated by regulation, or
(l) when used in relation to a central credit union,
(i) a member of the central credit union,
(ii) a cooperative credit society incorporated under the Cooperative Credit Associations Act (Canada), or
(iii) an entity that is designated by regulation, and a member or shareholder of that entity.
(2) An individual who, having been a related party under subsection (1) (a), (b), (c), (d) or (j) of a financial institution, ceases to be a related party under that subsection nevertheless continues for the purposes of this Part to be a related party of the financial institution for the 12 months commencing on the date the individual ceases to be a related party as defined in subsection (1) (a), (b), (c), (d) or (j).
(3) For the purposes of this Part, the commission by order may
(a) designate a person as a related party of a financial institution if in the commission's opinion there exists between the person and the financial institution an interest or relationship that might reasonably be expected to affect the exercise of the best judgment of an officer or director of the financial institution with respect to an investment, loan or other transaction, or
(b) designate a person as a related party of the financial institution if in the commission's opinion the person is acting in concert with one or more other persons to own or control, directly or indirectly, 10% or more of any class of voting shares in the financial institution.
145 A financial institution or a subsidiary of it may enter into the following transactions with related parties:
(a) pay or confer a salary, fee, stock option, pension, benefit or incentive benefit to a director or senior officer of the financial institution, or to a person who is in the class of employees prescribed for the purpose of section 144 (1) (b) or designated under section 144 (3);
(b) provide to related parties of the financial institution, at not less than fair market value, services or products that the financial institution or the subsidiary also provides in the ordinary course of its business to the public or, in the case of a credit union, to its members;
(c) if the aggregate amount outstanding under all loans to an individual who is a related party of the financial institution will not exceed the prescribed amount, counting the amount of the intended loan, make a loan to an individual who is a related party of the financial institution under paragraph (a) or (b) of the definition of "related party" in section 144;
(d) buy from, or sell to, a related party of the financial institution, for a nominal amount, as defined in the regulations, property or services having a fair market value that does not exceed that nominal amount.
146 (1) Except for a transaction that is described in section 145 or that is the subject of a consent under section 147, a financial institution or a subsidiary of it must not enter into a transaction with a related party of the financial institution unless the transaction, at the time it is entered into, is
(a) a specific transaction, or
(b) in a class of transactions
approved in writing for the purpose of this section by the conduct review committee of the financial institution.
(2) The conduct review committee of a financial institution must not approve a specific transaction or class of transactions for the purpose of this section unless the specific transaction or class of transactions is in the best interests of the financial institution or, if entered into by a subsidiary of it, in the best interests of both the financial institution and the subsidiary.
(3) The conduct review committee must specify in the written approval referred to in subsection (1) the factors considered by it in determining whether the specific transaction or the class of transactions is in the best interests of the financial institution or the financial institution and its subsidiary, as the case may be, and the factors considered must include
(a) the fair market value of the consideration paid by or received by the financial institution or the subsidiary,
(b) the nature of the transaction in relation to the usual business of the financial institution or the subsidiary,
(c) in the case of a transaction involving a loan by the financial institution or the subsidiary, the nature of the security and its value in relation to the principal amount of the loan, and
(d) prescribed factors.
147 (1) A financial institution or a subsidiary of it may enter into a transaction with a related party of the financial institution if the transaction, at the time it is entered into, is
(a) a specific transaction, or
(b) in a class of transactions
consented to by the commission.
(2) The commission may give a consent under subsection (1) if satisfied that the specific transaction or that any transaction in the class of transactions, as the case may be,
(a) is not and will not be contrary to the interests of
(i) the financial institution or the subsidiary or both, as the case may be,
(ii) depositors or policy holders of the financial institution,
(iii) any persons for whom the financial institution acts in a fiduciary capacity, or
(iv) the related party, and
(b) does not, will not and is not intended to obscure the financial condition of the financial institution, of the subsidiary or of the related party.
148 (1) Except as provided in this section, a financial institution that holds money as a fiduciary must not
(a) invest that money in securities issued by the financial institution or by a related party of it, or
(b) use that money in any transaction with a related party of the financial institution.
(2) A financial institution may act as a fiduciary in one or more trusts or estates in which there are securities issued by the financial institution or a related party of the financial institution if the securities were
(a) acquired by the person for whom the financial institution acts as a fiduciary, or
(b) held in the trust or estate before the financial institution assumed responsibility as a fiduciary.
(3) If a financial institution acts as a fiduciary in one or more trusts or estates in which securities are held that were issued by the financial institution or by a related party of it, the financial institution must not sell or vote the securities or refuse an offer for them without first receiving the written approval of the conduct review committee and that committee must enter the reasons for the sale, vote or refusal in its minutes.
(4) The conduct review committee at least annually must provide a written report to the directors of the financial institution on securities that have been
(a) issued by the financial institution or by a related party of it, and
(b) held in a trust or estate by the financial institution as a fiduciary
during its immediately preceding financial year and the conduct review committee in the report must give the reasons for any approvals given or denied under subsection (3) during that financial year.
(5) Even though subsection (1) would otherwise prohibit it from doing so, a financial institution or a related party of it may
(a) carry out an express or a specific permission or a direction that is
(i) made by a court, or
(ii) contained in an instrument creating a fiduciary duty
(A) to purchase or sell securities of the financial institution or of the related party, or
(B) to enter into a transaction with the financial institution or a related party of the financial institution, as the case may be,
(b) if the financial institution or related party does so as a fiduciary, make an investment in a bond, note or other evidence of indebtedness that is issued by the financial institution or by the related party, as the case may be, and for which there is a published market, or
(c) if the financial institution or related party does so as a fiduciary, make an investment or enter into a transaction in which one or more co-fiduciaries of the financial institution or related party can direct and has or have directed that the investment or transaction be made without the agreement of the financial institution or related party.
149 (1) Where, in respect of any proposed transaction of the financial institution or its subsidiary, a financial institution has reason to believe that the other party to the transaction is a related party of the financial institution, the financial institution must take all reasonable steps to obtain from the other party full disclosure, in writing, of an interest or relationship, direct or indirect, that would make the other party a related party of the financial institution.
(2) A financial institution and a director, officer, employee or agent of the financial institution may, if acting reasonably, rely on the information contained in a disclosure received by the financial institution in accordance with subsection (1) or information otherwise acquired in respect of a matter that might be the subject of the disclosure and no action or proceeding lies against the financial institution or a director, officer, employee or agent for anything done or omitted in good faith in reliance on the information, including without limitation, an action or proceeding under section 150 or 151.
(3) The disclosure referred to in subsection (1) of this section must not be relied on under subsection (2) of this section unless it is evidenced in a consent resolution, the minutes of a meeting or another record deposited in the financial institution's records office.
150 (1) If
(a) a financial institution or its subsidiary, senior director, officer or employee fails to comply with this Part, or
(b) a transaction that is prohibited under this Part takes place,
the financial institution or commission may apply to the Supreme Court for an order setting aside the transaction.
(2) On application under subsection (1), the Supreme Court may make any order it thinks fit, including, instead of or in addition to an order setting aside the transaction,
(a) an order that a person
(i) account for a profit or gain realized in the transaction,
(ii) pay to the financial institution or a subsidiary of a financial institution any damages suffered by the financial institution or the subsidiary in the transaction, or
(iii) pay to the financial institution or the subsidiary any amount
(A) paid by the financial institution or the subsidiary,
(B) lent by the financial institution or the subsidiary, or
(C) expended by the financial institution or the subsidiary in the transaction,
(b) an order for compensation for loss or damage suffered, and
(c) an order awarding punitive or exemplary damages against any person.
(3) A person is not liable in a proceeding under this section unless the person knew or reasonably ought to have known that the transaction was made in contravention of this Part.
151 (1) If an action is brought under section 201 of the Company Act as it applies for the purposes of this Act in relation to a transaction that is prohibited under this Part, the powers of the Supreme Court include the power to make an order that a person who authorizes, acquiesces in, participates in or facilitates the transaction pay to the financial institution or a subsidiary of a financial institution any
(a) damages suffered by the financial institution or the subsidiary,
(b) amount paid by the financial institution or the subsidiary in the transaction,
(c) amount lent by the financial institution or the subsidiary, or
(d) amount expended by the financial institution in the transaction.
(2) If a transaction that is prohibited under this Part is made or entered into, the right to bring an action conferred on a member or director by section 201 (1) (a) and (b) of the Company Act as it applies for the purposes of this Act, is deemed also to be conferred on the commission and because of this, other references in Part 7 of the Company Act to a member or director must be read as including a reference to the commission.
152 (1) A person who authorizes, acquiesces in, participates in or facilitates a transaction that is prohibited under this Part is liable in an action brought under section 201 of the Company Act, as it applies for the purposes of this Act, jointly and severally with every other person who authorizes, acquiesces in, participates in or facilitates the prohibited transaction.
(2) A person is not liable in an action brought under section 201 of the Company Act as it applies for the purposes of this Act unless the person knew or reasonably ought to have known that the transaction was made in contravention of this Part.
153 If a question arises in civil proceedings as to whether a financial institution, a subsidiary of a financial institution or a related party of a financial institution has, in acting under this Part, acted in compliance with the requirements of this Part, the burden of proof that it acted in compliance with the Part is on the financial institution, the subsidiary or the related party, as the case may be.
154 If an auditor of a financial institution has made a report to the directors of a financial institution under section 123 (1) (c), and the report discloses a breach of a provision of this Part, the auditor must also immediately report the matter in writing to the commission.
71 Sections 157, 158, 159 and 160 are repealed and the following substituted:
157 In this Part, "primary jurisdiction",
(a) in relation to an extraprovincial corporation that is licensed, registered or authorized to do business under law enacted by the Parliament of Canada, means Canada, and
(b) in relation to an extraprovincial corporation whose primary jurisdiction is not Canada and that is
(i) incorporated or continued, and
(ii) licensed, registered or authorized to do business
under law enacted by a province or another jurisdiction, means that province or that other jurisdiction, as the case may be.
158 (1) Sections 34, 63, 64, 66, 67 (1), 79, 91, 93, 94, 96, 130, 211, 213 to 215, 244 to 246, 249, 250, 252 (3), (5) and (6) and 253.1 to 253.3 apply to and in respect of an extraprovincial corporation.
(2) In addition to the sections referred to in subsection (1), sections 65, 86, 210, 247 and 259 apply to and in respect of an extraprovincial corporation, except for an extraprovincial corporation whose primary jurisdiction is Canada.
(3) In addition to the sections referred to in subsection (1), sections 67 (2), 112, 135 to 138 (1), 140 to 152, 155 and 156 apply to and in respect of the following:
(a) an extraprovincial corporation whose primary jurisdiction is not Canada or a province;
(b) an extraprovincial corporation whose primary jurisdiction is a province that is not designated under subsection (5) for the purposes of this section in respect of that type of extraprovincial corporation.
(4) For the purposes of subsections (1) to (3), references in the sections referred to in those subsections
(a) to "trust company" must be read as including "extraprovincial trust corporation",
(b) to "insurance company" must be read as including "extraprovincial insurance corporation",
(c) to "credit union" must be read as including "extraprovincial credit union", and
(d) to "financial institution" must be read as including "extraprovincial corporation".
(5) The Lieutenant Governor in Council by regulation may designate a province for the purposes of this section and of section 160 in respect of a specified type of extraprovincial corporation and, in determining whether to make such a designation, the Lieutenant Governor in Council may have regard to whether
(a) legislation similar to this Act has been enacted by the legislature of the province concerned, and
(b) the province concerned has adequate administrative, inspection, audit and compliance procedures and is adequately applying those procedures.
(6) Nothing in this Division affects the applicability to an extraprovincial corporation of a provision that is contained in any other section of this Act or in the regulations and that is of
(a) specific application to an extraprovincial corporation, or
(b) general application.
159 (1) An extraprovincial corporation must not carry on trust business, deposit business or insurance business in British Columbia unless it has a business authorization.
(2) A business authorization issued to an extraprovincial trust corporation
(a) must be confined to trust business, or
(b) in respect of an extraprovincial trust corporation whose primary jurisdiction is Canada, may authorize both trust business and deposit business provided that the extraprovincial trust corporation maintains prescribed deposit insurance
and does not authorize insurance business.
(3) Despite subsection (2), a business authorization issued to an extraprovincial trust corporation other than an extraprovincial trust corporation referred to in subsection (2) (b), before the date this section comes into force, that authorizes deposit business, or trust business and deposit business, remains in effect, subject to the maintenance by the extraprovincial trust corporation of prescribed deposit insurance, and to
(a) a subsequent surrender of the business authorization or an amendment that removes its authorization to carry on deposit business,
(b) the suspension, revocation or cancellation of the business authorization, or
(c) a continuation or amalgamation of the extraprovincial trust corporation under section 23 or 26 that does not, in the commission's opinion and in its sole discretion, meet the prescribed criteria.
(4) A business authorization issued to an extraprovincial insurance corporation
(a) may be confined to
(i) general insurance business or life insurance business, or
(ii) one or more classes of insurance, or
(b) may authorize both general insurance business and life insurance business.
(5) A business authorization issued to an extraprovincial credit union
(a) may be confined to deposit business, or
(b) may authorize both trust business and deposit business.
160 (1) The following extraprovincial corporations may file with the commission an application for a business authorization, in the form established by the commission, in accordance with this section:
(a) an extraprovincial trust corporation or extraprovincial credit union whose primary jurisdiction is not Canada;
(b) an extraprovincial trust corporation or extraprovincial credit union whose primary jurisdiction is Canada;
(c) an extraprovincial insurance corporation whose primary jurisdiction is not Canada, or a province that is designated under section 158 (5) for the purposes of that section and this section in respect of extraprovincial insurance corporations;
(d) an extraprovincial insurance corporation whose primary jurisdiction is Canada, or a province that is designated under section 158 (5) for the purposes of that section and this section in respect of extraprovincial insurance corporations.
(2) The commission may issue a business authorization to an extraprovincial corporation in accordance with subsections (3) and (4) and must issue a business authorization to an extraprovincial corporation in accordance with subsection (6).
(3) The commission may issue a business authorization to an extraprovincial corporation referred to in subsection (1) (a) or (c) if
(a) the corporation provides information in support of its application that is satisfactory to the commission,
(b) the commission is satisfied that the corporation has liquid assets and a capital base that
(i) is at least equal to the applicable minimum required by regulations under section 67, and
(ii) is adequate in relation to the business that the corporation proposes to carry on,
(c) the corporation provides
(i) financial statements in the form established by the commission that have been approved by a resolution of the directors, and
(ii) a report of the auditor of the corporation
that demonstrate the corporation is solvent and able to meet its obligations as shown by the financial statements submitted and accompanied by a report of the auditor and a copy of a resolution of the directors showing that the statements were approved by them,
(d) the corporation has a proposed plan of operations that is feasible,
(e) in the case of an extraprovincial insurance corporation, there is an insurance compensation plan designated by regulation for the purposes of section 66 (2) and the commission is satisfied that the corporation will not carry on a class of insurance business in respect of which insurance is offered under the plan unless the corporation is a member of the plan, and
(f) in the case of an extraprovincial credit union, the commission is satisfied that, in its primary jurisdiction, a credit union from British Columbia could be authorized to carry on business as an extraprovincial corporation.
(4) The commission must not issue a business authorization under subsection (3) if
(a) the commission believes on reasonable grounds that it is not in the public interest to issue the business authorization, or
(b) in the case of an extraprovincial credit union, the commission has not received the consent of the deposit insurance corporation.
(5) Before issuing a business authorization to an extraprovincial corporation under subsection (3), the commission may
(a) conduct an investigation, and
(b) require the extraprovincial corporation to provide the commission with additional information, documents, verifications or forecasts of business operations
that the commission considers necessary for evaluation of the application.
(6) The commission must issue a business authorization to an extraprovincial corporation referred to in subsection (1) (b) or (d) if the corporation provides information in support of its application that is satisfactory to the commission.
72 Section 161 is amended by striking out ' "Trust", "TrustCo", "Deposit" or "Insurance"' and substituting ' "Caisse Populaire", "Credit Union", "Trust", "TrustCo", "Deposit", "Insurance" or other prescribed words"'.
73 Section 162 is amended by striking out "in British Columbia".
74 Section 163 is amended
(a) by renumbering the section as section 163 (1),
(b) in subsection (1) by striking out "Within 90 days" and substituting "Subject to subsection (2), within 90 days",
(c) in subsection (1) by striking out "a return in the prescribed form" and substituting "a return in the form established by the superintendent", and
(d) by adding the following subsection:
(2) An extraprovincial insurance corporation whose business authorization is subject to the condition that the business of the extraprovincial insurance corporation is confined to reinsurance must, within 105 days after the end of its financial year in each year, file with the superintendent a return referred to in subsection (1) in respect of its reinsurance business.
75 Section 166 is amended
(a) in subsection (4) (a) by striking out ", subject to first receiving the consent of the minister,", and
(b) by repealing subsection (5) and substituting the following:
(5) The commission must not issue a business authorization under subsection (4) (a) if the commission believes on reasonable grounds that it is not in the public interest.
76 Section 168 is amended by repealing the definition of "insurance adjuster" and substituting the following:
"insurance adjuster" means a person who makes an adjustment or settlement of a claim under a contract of insurance other than a contract of marine insurance; .
77 Section 170 is repealed and the following substituted:
170 A partnership or corporation must nominate an individual who is a licensed insurance agent or licensed insurance adjuster approved by the council to exercise on behalf of the partnership or corporation the rights and privileges conferred by the licence.
78 Section 171 is amended
(a) by repealing subsection (1), and
(b) by repealing subsection (3) and substituting the following:
(3) Subsection (2) does not apply to a person or class of persons exempted by the regulations.
79 Sections 172, 173, 175 and 181 to 185 are repealed.
80 Section 174 is repealed and the following substituted:
174 (1) An applicant must deliver to the council an application that fulfills the requirements of the rules of the council.
(2) A licence issued by the council
(a) must be issued in accordance with the rules of the council,
(b) must be issued for one or more prescribed classes of insurance and state the class of insurance in respect of which the licensee is authorized to act, and
(c) authorizes the licensee to act in accordance with the licence and its terms, conditions or restrictions, if any, unless the licence is suspended or cancelled under section 225.1 (2) (i) or 231.
(3) Before issuing a licence to an applicant or consenting to a transfer of a licence, the council may
(a) conduct an investigation, and
(b) require the applicant to provide the council with additional information, documents or verification that the council considers necessary for evaluation of the application.
81 Section 178 (3) is amended by striking out "to a person described in paragraph (i) of section 171 (3) for acting as described in that paragraph." and substituting "to a trust company, credit union, extraprovincial trust corporation, extraprovincial credit union or bank, or the officers and employees of any of them, for acting as agent in respect of credit insurance incidental to the ordinary business of the trust company, credit union, extraprovincial trust corporation, extraprovincial credit union or bank."
82 Section 180 (2) is repealed and the following substituted:
(2) Subsection (1) does not apply to a person or class of persons exempted by the regulations.
83 Section 189 is repealed and the following substituted:
189 This Division and sections 1, 2, 11, 59 (2) and (4), 61 (1) to (3), 62 to 64, 66, 67, 69, 70, 75 to 81, Division 6 of Part 3, sections 112, 127, 129, 130 to 133, Division 4 of Part 4, Part 5, Divisions 1 and 3 of Part 7, Part 8 and Part 10 apply to and in respect of a mutual fire insurance company as if the mutual fire insurance company were an insurance company as defined in section 1.
84 Section 192 is amended
(a) by striking out "60 (3),", and
(b) by striking out "132 to 134," and substituting "132, 133,".
85 Section 194 (b) is amended by striking out "section 160 (1) and (2)" and substituting "section 160 (1) to (3)".
86 Section 197 is amended by striking out "the superintendent's" and substituting "the commission's".
87 Section 201 is amended
(a) by renumbering the section as section 201 (1), and
(b) by adding the following subsections:
(2) Subject to subsections (3) and (4), the commission may delegate a power or duty given to it under this Act, the Credit Union Incorporation Act or the Society Act to the superintendent appointed under section 207.
(3) The commission must not delegate
(a) the following powers:
(i) the giving of consent to incorporation of a trust company or insurance company under section 18;
(ii) the giving of consent to continuation of an extraprovincial insurance corporation or extraprovincial trust corporation under section 23;
(iii) the giving of consent to the transfer of incorporation respecting a trust company or insurance company under section 24;
(iv) the giving of consent to an amalgamation agreement under section 27;
(v) the giving of consent to a compromise or arrangement respecting a trust company or insurance company under section 28;
(vi) the making of an order that a trust company or insurance company be wound up under section 38;
(vii) the appointment of a special examiner under section 214;
(viii) the making of an order to appoint a person as an administrator of a central credit union under section 248;
(ix) the making of an order requiring a financial institution to cease carrying on business under section 249 (1) (i) or revoking a financial institution's business authorization under section 249 (1) (j);
(x) the ability to apply for appointment of a receiver or receiver manager of a trust company or insurance company under section 251,
(b) a power or duty under Part 9, or
(c) the following powers under the Credit Union Incorporation Act:
(i) the giving of consent to incorporation of a credit union under section 11;
(ii) the giving of consent to continuation of an extraprovincial credit union under section 15.1;
(iii) the giving of consent to transfer of incorporation of a credit union under section 15.2;
(iv) the giving of consent to a proposed asset transfer agreement under section 16;
(v) the giving of consent to an amalgamation under section 20;
(vi) the appointment of a liquidator under section 26;
(vii) the making of an order that a credit union be wound up under section 38;
(viii) the ability to permit variations in the incorporation of a credit union under section 85.
(4) A delegation of a power or duty of the commission under this section must be in writing and may include terms or conditions the commission considers advisable, including limits on delegation by the superintendent under section 207 (2) of a power or duty delegated by the commission.
(5) A delegation under this section is revocable and does not prevent the commission from exercising a delegated power.
(6) A person purporting to exercise a power of the commission by virtue of a delegation under this section must, when requested to do so, produce evidence of his or her authority to exercise the power.
(7) The commission must not delegate its power to delegate under this section.
88 Section 207 is amended
(a) in subsections (1) and (3) by striking out "chair of the", and
(b) by repealing subsection (2) and substituting the following:
(2) The superintendent
(a) may exercise the powers and must perform the duties vested in or imposed on the superintendent under this Act, the Credit Union Incorporation Act and the Company Act as it applies for the purposes of this Act, and
(b) subject to a limit under section 201 (4), may, in writing and with or without terms or conditions, delegate a power or duty delegated to the superintendent by the commission, to an officer, employee or agent of the commission
and section 201 (5) and (6) applies to a delegation under this section, except the reference to "the commission" must be read as a reference to "the superintendent".
89 Section 212 (1) is amended by striking out "At least annually, the superintendent must conduct" and substituting "The superintendent must periodically conduct".
90 Section 214 (1) is amended by striking out "the minister's" and substituting "the commission's".
91 The following sections are added:
225.1 (1) The council may make rules for the purposes of licensing and regulating the conduct of insurance agents, insurance salespersons, insurance adjusters and employed insurance adjusters.
(2) Without limiting subsection (1) but subject to section 225.2, the council may make rules as follows:
(a) respecting applications for, and issuance and transfer of, licences to insurance agents, insurance salespersons, insurance adjusters and employed insurance adjusters;
(b) providing for the supervision of
(i) salespersons by insurance agents, and
(ii) employed insurance adjusters by insurance adjusters;
(c) respecting nominees for insurance agents, insurance adjusters, partnerships or corporations and the requirements of nominees;
(d) respecting the education, experience or other qualifications of applicants for a licence, including rules conferring the discretion to determine equivalent education, experience or qualifications;
(e) establishing or varying the terms, conditions or restrictions that may or must be imposed on a licence or licensee;
(f) respecting or adopting a continuing professional education program that is required of licensees;
(g) establishing codes or standards for the conduct of licensees or incorporating or adopting by reference, in whole or in part and with any changes the council considers appropriate, provincial, national or international association codes, standards or rules for the conduct of licensees;
(h) establishing the criteria to be applied and the procedures to be followed by the council or a committee of the council respecting hearings and suspension, cancellation or restriction of licences and the imposition of fines;
(i) providing for circumstances in which a licence is automatically suspended and invalid and procedures for reinstatement of the licence;
(j) establishing fees to be collected from applicants and licensees.
(3) If the council establishes or varies terms, conditions or restrictions under subsection (2) (e) that must be imposed on a licence, the council may also deem the terms, conditions or restrictions to be part of every licence or every licence of a class of licence, whether issued before or after the establishment of the term, condition or restriction.
(4) A code, standard or rule referred to in subsection (2) (g) may be adopted as amended from time to time.
(5) In making a rule, the council may
(a) make different rules for different classes of licences, applicants or licensees, or
(b) exempt an applicant or licensee or a class of applicants or licensees from one or more of the rules made under this section.
(6) The Lieutenant Governor in Council may, by regulation, make a rule or repeal or amend a rule made by the council under this section and the regulation is deemed to be a rule made by the council.
225.2 (1) Before making, amending or repealing a rule under section 225.1, the council must obtain the consent of the minister in accordance with the regulations and comply with any other prescribed procedures and requirements.
(2) The Regulations Act does not apply to a rule made by the council under section 225.1.
(3) The council must publish a copy of its rules in accordance with the regulations.
225.3 If a rule made by the council conflicts with a regulation made by the Lieutenant Governor in Council under section 225.1 (6), the regulation prevails.
92 Section 226 (3) is amended by striking out "the superintendent's" and substituting "the commission's".
93 Section 227 (b) (iv) is repealed and the following substituted:
(iv) copies of approvals required under the rules made by the council under section 225.1, .
94 Sections 228 and 229 are repealed.
95 Section 231 is amended
(a) by repealing subsection (1) (a) and substituting the following:
(a) no longer meets a licensing requirement established by a rule made by the council or did not meet that requirement at the time the licence was issued, or at a later time, ,
(b) in subsection (1) (b) by striking out "in breach of a condition or restriction of the licence" and substituting "in breach of a term, condition or restriction of the licence",
(c) in subsection (1) by striking out "or" at the end of paragraph (d),
(d) by repealing subsection (1) (e) and substituting the following:
(e) has contravened section 79, 94 or 177, or
(e.1) has contravened a prescribed provision of the regulations, ,
(e) by repealing subsection (1) (k) and substituting the following:
(k) in respect of conduct described in paragraph (a), (b), (c), (d), (e) or (e.1), fine the licensee or former licensee an amount
(i) not more than $20 000 in the case of a corporation, or
(ii) not more than $10 000 in the case of an individual. , and
(f) by adding the following subsection:
(3.1) On application of the person whose licence is suspended under subsection (1) (g), the council may reinstate the licence if the deficiency that resulted in the suspension is remedied.
96 Section 232 (1) (a) is amended by adding "or rules made by the council under section 225.1" after "of the regulations".
97 The following section is added:
232.1 (1) For the purposes of an investigation under section 232, the council or person appointed by the council to conduct the investigation, has the same power
(a) to summon and enforce the attendance of witnesses,
(b) to compel witnesses to give evidence on oath or in any other manner, and
(c) to compel witnesses to produce records and things and classes of records and things
as the Supreme Court has for the trial of civil actions.
(2) The failure or refusal of a witness
(a) to attend,
(b) to take an oath,
(c) to answer questions, or
(d) to produce the records and things or classes of records and things in the custody, possession or control of the witness
makes the witness, on application to the Supreme Court, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.
(3) Section 34 (5) of the Evidence Act does not apply to an investigation under section 232.
(4) A person giving evidence at an investigation conducted under section 232 may be represented by counsel.
98 Sections 233 and 234 are repealed.
99 Section 235 is amended
(a) by repealing subsection (1) (a) to (d) and substituting the following:
(a) of the commission under section 38 (1) or (2), 39 (a), 48 (2), 58, 61 (2), 67 (2), 93, 99 (2), 107 (1), 109 (2), 117 (2), 124, 125, 137, 142 (2), 143, 144 (3), 193 (2), 197, 206, 214, 241.1, 244, 245, 247 to 249, 253.1, 275, 276 (e), 277 or 285 (1),
(b) of the superintendent under section 124 (1), 211, 215 or 241.1, or,
(c) of the council under section 231 (1) or 241.1 , and
(b) by repealing subsection (2) and substituting the following:
(2) A consent or a refusal of a consent of the commission under section 18 (1), 21 (2) (b), 23 (4) (c), 24 (1) (b), 27, 28, 33, 34 (2), 50 (4), 67 (3), 69 (1), 99 (3), 141 (2) (c), 142 (1) (a), (b) or (c), 147, 226 (3) or 276 (c) must be in writing.
100 Section 236 is amended
(a) in subsections (1) and (3) by striking out "minister,",
(b) in subsection (1) (a) by adding "or" at the end of subparagraph (iii), by striking out "or" at the end subparagraph (iv) and substituting "and" and by repealing subparagraph (v),
(c) in subsection (2) by striking out "or by the minister under section 249", and
(d) in subsection (3) (d) by striking out "or a licence under Division 2 of Part 6".
101 Section 237 is amended
(a) by repealing subsection (1) and substituting the following:
(1) This section applies to hearings by the commission, superintendent or council under this Act. ,
(b) in subsection (2) by striking out "minister,",
(c) in subsection (2) by adding "in accordance with the regulations" after "written notice",
(d) in subsection (2) (a) by striking out "68 (4)," and substituting "67 (2),",
(e) in subsection (2) (a) by striking out "145 (1) or (2)," and substituting "144 (3),",
(f) in subsection (2) (a) by adding "249, 253.1," after "247 (2) or (4),",
(g) by repealing subsection (5), and
(h) in subsection (6) by striking out "the minister,".
102 Section 238 (1) (a) is amended
(a) by striking out "145 (1)," and substituting "144 (3),", and
(b) by striking out "245 (1), 275 or 277 (d) to (f), and" and substituting "245 (1) and 249, and".
103 Section 241 (2) is amended by striking out "the superintendent's staff" and substituting "the commission's staff".
104 The following section is added:
241.1 (1) If an order results from an investigation or hearing, the commission, the superintendent or the council may by order require the financial institution, licensee, former licensee or other person subject to the order to pay the costs, or part of the costs, of either or both of the following in accordance with the regulations:
(a) an investigation;
(b) a hearing.
(2) Costs assessed under subsection (1)
(a) must not exceed the actual costs incurred by the commission, superintendent or council for the investigation and hearing, and
(b) may include the costs of remuneration for employees, officers or agents of the commission, superintendent or council who are engaged in the investigation or hearing.
(3) If a person fails to pay costs as ordered by the date specified in the order or by the date specified in the order made on appeal, if any, whichever is later, the commission, superintendent or council, as the case may be, may file with the court a certified copy of the order assessing the costs and, on being filed, the order has the same force and effect and all proceedings may be taken on the order as if it were a judgment of the court.
105 Section 242 (1) is amended
(a) by repealing paragraph (a) and substituting the following:
(a) an order under section 48 (2), 67 (2), 93, 99 (2), 109 (2), 125 (1), 137, 143, 144 (3), 193, 197, 231 (1), 241.1, 244 (2), 245 (1), 247 (2) or (4), 253.1, 275 or 277 (d) to (g); , and
(b) in paragraphs (b), (c) and (d) by striking out "section 235 (2) (b) or (c)" and substituting "section 235 (2)".
106 Section 243 is amended by adding the following subsections:
(4) Subject to subsection (5), all communications with, and information supplied and records or things produced to, the commission, superintendent or council with respect to
(a) an applicant for an insurance agent, insurance salesperson, insurance adjuster or employed insurance adjuster licence, a licensee or former licensee,
(b) an applicant for a business authorization or a permit under section 187,
(c) an inquiry, examination or investigation of a financial institution or extraprovincial corporation under this Act, or
(d) the compliance of a person with this Act
are privileged and no action may be brought against a person as a consequence of the person having made that communication.
(5) Subsection (4) does not apply to a person who makes a communication, supplies information or produces records or things maliciously.
107 Section 244 (2) is amended
(a) by striking out "in the opinion of the superintendent," and substituting "in the opinion of the commissioner,",
(b) by repealing paragraph (d) and substituting the following:
(d) does not comply with a written undertaking given under this Act, or ,
(c) by striking out "the superintendent may" and substituting "the commission may", and
(d) in paragraphs (f) (iii) and (g) by striking out "the superintendent" wherever it appears and substituting "the commission".
108 Section 245 is amended
(a) in subsection (1) (b) by adding "commission or" before "superintendent",
(b) in subsections (1) (d) and (5) by striking out "the superintendent's" and substituting "the commission's",
(c) in subsection (1) (e) by striking out "the superintendent" and substituting "the commission",
(d) in subsection (1) by striking out "the superintendent may make" and substituting "the commission may make", and
(e) by adding the following subsections:
(6) The commission may apply to the court without notice to any person for an order under subsection (8).
(7) If
(a) a person to whom an order under subsection (1) is directed is uncertain respecting the application of the order to property, or
(b) a claim is made to the property,
the person may, on giving notice to the commission, apply to the Supreme Court for an order under subsection (8).
(8) On an application under subsection (6) or (7), the Supreme Court may direct the disposition of the property as it considers just.
109 Section 248 (2), (3) and (4) is repealed and the following substituted:
(2) If
(a) the central credit union, having been ordered under subsection (1) (c) to hold a special general meeting, fails to hold the meeting within 30 days after the date of the order, or
(b) the voting members at the special general meeting do not take action that the commission considers satisfactory to ensure compliance with the order under section 244,
the commission by order may appoint a person as an administrator of the central credit union that is the subject of the order under section 244, and may terminate the appointment.
110 Section 249 is amended
(a) by repealing subsections (1) to (6) and substituting the following:
(1) If the commission has reasonable grounds to believe that
(a) a financial institution has failed to comply with an order of the commission or the Commercial Appeals Commission,
(b) a financial institution has failed to comply with an order of the Supreme Court made under section 246,
(c) a financial institution's licence, registration, permit or business authorization has been cancelled or suspended, or limitations, restrictions or conditions have been imposed on the financial institution's authority to carry on business under a law of Canada or a province,
(d) a financial institution has failed to comply with a condition of its business authorization,
(e) a financial institution is carrying on or soliciting business in another jurisdiction without first being authorized to do so under the laws of that jurisdiction,
(f) a financial institution has ceased to do business in British Columbia, or
(g) a credit union has fewer than 25 members,
the commission by order may
(h) impose conditions in respect of the financial institution's permit or business authorization,
(i) require the financial institution to cease carrying on business for a period of not more than 21 days specified in the order, or
(j) revoke the financial institution's permit or business authorization.
(2) If the commission makes an order under subsection (1) (i), then, on or after the expiry of the specified period, the commission may make an order under subsection (1) (h) or (j). ,
(b) by repealing subsection (7) and substituting the following:
(7) The commission may by order
(a) cancel a condition imposed under subsection (1) (h) in respect of a permit or business authorization, or
(b) reinstate a permit or business authorization that has been revoked under subsection (1) (j), either unconditionally or subject to conditions the commission considers appropriate. , and
(c) in subsections (9), (10) and (11) by striking out "subsection 5 (b)" and substituting "subsection (1) (i)".
111 Section 251 is amended by adding the following subsection:
(5) On an application under this section, the court may admit as evidence
(a) any hearsay evidence that the court considers reliable, or
(b) any oral or written statement, record or report that the court considers relevant.
112 Section 252 (2) is amended
(a) by repealing paragraph (a) and substituting the following:
(a) contravenes section 50 (1) or (2), 52 (1) or (2), 66 (2), 70, 75, 81 (1), 91, 94, 104, 122 (1), 133, 138, 146, 148 (1), 149 (1) or (3), 162 or 164 (1), ,
(b) in paragraph (b) by striking out "90 (1)," and "134 (1) or (2)",
(c) by adding the following paragraph:
(b.1) contravenes a prescribed provision of the regulations, ,
(d) in paragraph (e) by striking out "149 (2)" and substituting "146 (1)", and
(e) in paragraph (e) by striking out "149 (3) or (4)," and substituting "146 (2),".
113 Section 253 is amended
(a) in subsection (1) by adding "or a prescribed provision of the regulations" after "or (f)", and
(b) in subsection (2) by adding "or a prescribed provision of the regulations" after "or (g)".
114 The following sections are added:
253.1 (1) The commission may, by order and on written notice in accordance with the regulations, impose an administrative penalty on a person if the person has contravened one or more of the following:
(a) a prescribed provision of this Act;
(b) a prescribed provision of the regulations;
(c) a condition of a business authorization;
(d) an order under section 244 (2) (f), 245 (1) (f) to (j) or 247;
(e) an undertaking given to the commission or the superintendent under section 208 or 244 (2) (g).
(2) If the commission makes an order under subsection (1),
(a) the order must specify
(i) the contravention,
(ii) the amount of the administrative penalty,
(iii) the date by which the administrative penalty must be paid, and
(iv) the person's right to an appeal, and
(b) the administrative penalty must not exceed the amount prescribed by regulation for that contravention and in any event must not exceed
(i) $50 000 in the case of a corporation, and
(ii) $25 000 in the case of an individual.
(3) The time limit for making an order that imposes an administrative penalty is 6 months after the date on which the contravention is alleged to have occurred.
(4) The person on whom an administrative penalty is imposed under subsection (1) must
(a) pay the administrative penalty, or
(b) file notice of appeal under section 242
within 30 days of receiving notification of the decision to be appealed.
(5) If a corporation commits a contravention referred to in subsection (1), the commission may by order impose an administrative penalty on an officer, director or agent of the corporation who authorized, permitted or acquiesced in the contravention, whether or not the corporation is liable for or pays an administrative penalty.
(6) An appeal operates as a stay and suspends the order under subsection (1) until the appeal is disposed of.
(7) An administrative penalty must be paid into the consolidated revenue fund.
253.2 (1) A person on whom a penalty is imposed and who pays the penalty may not be charged and a prosecution does not lie against the person for an offence under this Act or the regulations for the same contravention.
(2) The commission may not make an order under section 253.1 (1) in respect of a contravention if the person has been charged with an offence under this Act or the regulations for the same contravention.
253.3 If a person fails to pay an administrative penalty as ordered under 253.1 in accordance with section 253.1 (4) (a) or by the date specified in the order made on appeal, if any, the commission may file with the court a certified copy of the order imposing the administrative penalty and, on being filed, the order has the same force and effect and all proceedings may be taken on the order as if it were a judgment of the court.
115 Section 254 is amended by striking out "A proceeding, conviction or penalty" and substituting "Subject to section 253.2, a proceeding, conviction or penalty".
116 Section 255 is amended by striking out "the superintendent" and substituting "the superintendent or commission, whichever comes first".
117 Section 275 is amended
(a) in paragraph (b) by striking out "adequate liquidity in accordance with section 67 or adequate capital in accordance with section 68;" and substituting "adequate liquidity or capital in accordance with section 67;", and
(b) in paragraph (e) by striking out "a superintendent's" and substituting "the commission's".
118 Section 284 is amended by striking out "or the minister" and substituting "or the commission".
119 Section 289 is amended
(a) by repealing subsection (3) (e) and substituting the following:
(e) respecting the adequacy of liquid assets and the capital base of a financial institution for the purpose of section 67, ,
(b) in subsection (3) (f) by striking out "section 68" and substituting "section 67",
(c) in subsection (3) (r) by striking out ", location and relocation",
(d) in subsection (3) by striking out "and" at the end of paragraph (t), by adding ", and" at the end of paragraph (u) and by adding the following paragraph:
(v) respecting costs that may be assessed by the commission, superintendent or council under section 241.1, including but not limited to the maximum amounts of costs that may be assessed. ,
(e) by repealing subsection (4) (a) and substituting the following:
(a) prescribing for the purpose of section 140
(i) types of loans and investments and the circumstances and conditions under which a subsidiary of a financial institution may make them, or
(ii) types of business or activities carried on by a subsidiary of a financial institution; ,
(f) by repealing subsection (4) (c),
(g) in subsection (4) by adding the following paragraphs:
(f.1) governing the procedures that are to be followed by the council in making and repealing council rules including, but not limited to, publication of the rules,
(f.2) making, amending or repealing a council rule, ,
(h) by repealing subsection (4) (g) (i) and (ii) and (j), and
(i) by adding the following subsection:
(8) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations of the Lieutenant Governor in Council are contemplated by this Act.
120 The following Part is added:
Part 11 -- Review of Act
294 Every 10 years, the government must initiate a review of this Act to determine what changes, if any, should be made.
121 (1) The Lieutenant Governor in Council may make regulations to more effectively bring this Act into operation and to provide for cases and circumstances that may arise in the implementation of this Act for which no provision, or no adequate provision, has been made.
(2) A regulation made under this section may be made retroactive to a date not earlier than the date this Act or part of this Act comes into force, and if made retroactive is deemed to come into force on the date specified in the regulation.
(3) This section is repealed on December 31, 2006, and on its repeal any regulations made under it are also repealed.
Community Financial Services Act
122 Section 30 (2) of the Community Financial Services Act, R.S.B.C. 1996, c. 61, is amended
(a) in paragraph (a) by striking out "122 (1) or 147 (2)" and substituting "or 122 (1)",
(b) in paragraph (b) by striking out "90 (1) or (2)," and "or 151 (1), (2) (d), (3), (4), (5), (6), (7) or (8)",
(c) in paragraph (b) by striking out "the superintendent" and substituting "the commission",
(d) in paragraph (d) by striking out "by the superintendent",
(e) in paragraph (f) by striking out "149 (2)" and substituting "146 (1)", and
(f) in paragraph (f) by striking out "149 (3) or (4)" and substituting "146 (2)".
123 Section 36 (2) (a) is repealed and the following substituted:
(a) sections 3, 12 to 30, 32 to 58, 61 (1) to (5), (7) and (8) (b) to (d), 65, 66, 75 to 80, 96 to 100, 106, 108 to 111, 117, 121, 124 (2), 127 (1) (a), (c) and (e) and (2) (b), 128, 131, 132, 144 (1) (c) and (d), 151, 152, 157, 158, 159 to 171, 174, 176 to 180, 220 to 227, 230 to 234, 252 to 258, 259 (1) (b) and (c) (i), 260 to 288, 289 (3) (k), 290 and 293 of the Financial Institutions Act; .
Corporation Capital Tax Act
124 Section 1 of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is amended by repealing the definition of "credit union" and substituting the following:
"credit union" means a credit union or extraprovincial credit union as defined in the Financial Institutions Act; .
Credit Union Incorporation Act
125 Section 98 of the Credit Union Incorporation Act, R.S.B.C. 1996, c. 82, is amended
(a) by repealing subsection (1) and substituting the following:
(1) A person directly affected by
(a) an order of the superintendent under section 76 (9) (a) or (b) acting in accordance with a delegation by the commission,
(b) a consent referred to in section 93 (2) that is given subject to conditions by the superintendent acting in accordance with a delegation by the commission, or
(c) a refusal of the superintendent, acting in accordance with a delegation by the commission, to give a consent referred to in section 93 (2)
may appeal the order, the conditional consent or the refusal of consent to the tribunal, and, unless otherwise provided for in this Act, sections 242.2 and 242.3 of the Financial Institutions Act apply. , and
(b) by repealing subsection (3) and substituting the following:
(3) A person directly affected by
(a) a consent, referred to in section 93 (2), that is given subject to conditions,
(b) a refusal of the commission to give a consent referred to in section 93 (2), or
(c) an order of the commission under section 76 (9)
may appeal the conditional consent, refusal or order to the Supreme Court and, unless otherwise provided for in this Act, section 242.4 (2) to (5) of the Financial Institutions Act applies.
Finance and Corporate Relations Statutes Amendment Act, 1999
126 Sections 3, 4, 5, 7 to 9, 14 and 15 of the Finance and Corporate Relations Statutes Amendment Act, 1999, S.B.C. 1999, c. 33, are repealed.
Financial Institutions Act
127 Section 238 (1) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended by striking out everything before paragraph (b) and substituting the following:
(1) If the superintendent acting in accordance with a delegation by the commission, or the council, depending on which of them has the power to make the order,
(a) intends to make an order under section 48 (2), 93 (1) or (2), 99 (2), 144 (3), 231 (1) (g), (h), (i) or (j), 244 (2), 245 (1), 275 or 277 (d) to (f), and .
128 Section 238.1 (1) is amended by striking out everything before paragraph (b) and substituting the following:
(1) If the commission
(a) intends to make an order under section 48 (2), 93 (1) or (2), 99 (2), 144 (3), 244 (2), 245 (1), 275 or 277 (d) to (f), and .
129 Section 242 (1) is repealed and the following substituted:
(1) A person directly affected by any of the following decisions of the superintendent acting in accordance with a delegation by the commission, or the council, depending on which of them has the power to make the decision, may appeal the decision to the tribunal:
(a) an order under section 48 (2), 67 (2), 93, 99 (2), 109 (2), 125 (1), 137, 143, 144 (3), 193, 197, 231 (1), 244 (2), 245 (1), 247 (2) or (4), 253.1, 275 or 277 (d) to (f);
(b) a consent referred to in section 235 (2) given subject to conditions;
(c) the imposition or variation of conditions on a previously given consent referred to in section 235 (2);
(d) a refusal to give a consent referred to in section 235 (2);
(e) the issuance subject to conditions of
(i) a licence under Division 2 of Part 6,
(ii) a business authorization, or
(iii) a permit under section 187 (1);
(f) the imposition or variation of a term, condition or restriction on a previously issued licence under Division 2 of Part 6;
(g) the imposition or variation of a condition on a previously issued
(i) business authorization, or
(ii) permit under section 187 (1);
(h) a refusal to issue
(i) a business authorization, or
(ii) a permit under section 187 (1);
(i) a refusal to issue a licence under Division 2 of Part 6.
130 Section 242.4 (1) (a) to (d) is repealed and the following substituted:
(a) an order under section 48 (2), 67 (2), 93, 99 (2), 109 (2), 125 (1), 137, 143, 144 (3), 193, 197, 231 (1), 244 (2), 245 (1), 247 (2) or (4), 253.1, 275 or 277 (d) to (g);
(b) a consent referred to in section 235 (2) given subject to conditions;
(c) the imposition or variation of conditions on a previously given consent referred to in section 235 (2);
(d) the refusal to give a consent referred to in section 235 (2); .
131 Section 289 (3) is amended by striking out "and" at the end of paragraph (v), by adding ", and" at the end of paragraph (w) and by adding the following paragraph:
(x) respecting costs that may be assessed by the commission, superintendent or council under section 241.1, including but not limited to the maximum amounts of costs that may be assessed.
Insurance (Captive Company) Act
132 Section 3 (1) of the Insurance (Captive Company) Act, R.S.B.C. 1996, c. 227, is amended by striking out "134,".
Interpretation Act
133 Section 29 of the Interpretation Act, R.S.B.C. 1996, c. 238, is amended
(a) by repealing the definition of "credit union" and substituting the following:
"credit union" means a credit union or extraprovincial credit union authorized to carry on business under the Financial Institutions Act; ,
(b) in paragraph (c) of the definition of "savings institution" by striking out "trust company or", and
(c) by repealing the definition of "trust company" and substituting the following:
"trust company" means
(a) a trust company authorized under the Financial Institutions Act to carry on trust business, or
(b) an extraprovincial trust corporation authorized under the Financial Institutions Act to carry on trust business, deposit business or both; .
Personal Property Security Act
134 Section 64 (2) (c) of the Personal Property Security Act, R.S.B.C. 1996, c. 359, is repealed and the following substituted:
(c) a corporation except a trust company or credit union authorized under the Financial Institutions Act to carry on trust business by a business authorization issued to it under that Act or a corporation licensed as a trustee under the Bankruptcy Act (Canada), .
Property Transfer Tax Act
135 Section 14 (4) (p) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is repealed and the following substituted:
(p) a transfer from a settler to the Public Guardian and Trustee or a trustee that is a trust company or credit union authorized under the Financial Institutions Act to carry on trust business by a business authorization under that Act, if .
School Act
136 Section 59 (c) of the School Act, R.S.B.C. 1996, c. 412, is amended by striking out "as defined in the Credit Union Incorporation Act".
Society Act
137 Section 1 of the Society Act, R.S.B.C. 1996, c. 433, is amended by adding the following definition:
"commission" means the Financial Institutions Commission established under the Financial Institutions Act; .
138 Section 2 (1) (d) is amended by striking out "the Superintendent of Financial Institutions" and substituting "the commission".
139 Section 14 is amended
(a) in subsection (1) by striking out "the Superintendent of Financial Institutions" and substituting "the commission", and
(b) by repealing subsection (3) and substituting the following:
(3) The commission must not consent under subsection (1) unless the commission
(a) believes on reasonable grounds that it is in the public interest to consent,
(b) is satisfied that the proposed bylaws of the society are fair and the plan of the society is reasonable, and
(c) is satisfied that the society will be issued a business authorization under the Financial Institutions Act.
140 Section 14.1 is amended by striking out "the Superintendent of Financial Institutions" and substituting "the commission".
141 Section 33 is amended by striking out "chartered bank, credit union or trust company" and substituting "savings institution".
142 (1) Subject to subsection (2), the Lieutenant Governor in Council may repeal sections 20, 101 (a), 102, 105 and 119 (d) of this Act by regulation.
(2) A regulation under subsection (1) may not be made before the date that sections 18, 19 and 23 to 31 of the Commercial Appeals Commission Repeal Act, 2003, S.B.C. 2003, c. 51, come into force.
143 (1) Subject to subsection (2), this Act comes into force by regulation of the Lieutenant Governor in Council.
(2) A regulation bringing sections 125 and 127 to 131 into force may not be made before the date that sections 18, 19 and 23 to 31 of the Commercial Appeals Commission Repeal Act, 2003, S.B.C. 2003, c. 51, come into force.
Credit Union Incorporation Act
SECTION 1: [Credit Union Incorporation Act, section 1] amends and adds to the definitions in the Act.
SECTION 2: [Credit Union Incorporation Act, section 4] repeals a provision respecting the interpretation of the Company Act, to match other amendments made by this Bill.
SECTION 3: [Credit Union Incorporation Act, section 5] matches amendments made by other provisions of this Bill.
SECTION 4: [Credit Union Incorporation Act, section 11] replaces references to the minister with references to the commission.
SECTION 5: [Credit Union Incorporation Act, sections 15, 25, 40, 44, 64, 65, 69, 74, 76 and 98] replaces references to the superintendent with references to the commission.
SECTION 6: [Credit Union Incorporation Act, sections 15. 1 to 15.3] allows credit unions to transfer into and transfer out of British Columbia.
SECTION 7: [Credit Union Incorporation Act, section 38] replaces references to the minister with references to the commission.
SECTION 8: [Credit Union Incorporation Act, section 39] replaces a reference to the superintendent with a reference to the commission.
SECTION 9: [Credit Union Incorporation Act, section 69] revises the patronage allocation rules.
SECTION 10: [Credit Union Incorporation Act, section 72] allows credit union rules to permit voting by electronic means.
SECTION 11: [Credit Union Incorporation Act, section 76] clarifies procedures for the requisition of a special general meeting.
SECTION 12: [Credit Union Incorporation Act, section 81] allows credit unions to exercise powers outside British Columbia.
SECTION 13: [Credit Union Incorporation Act, section 85] replaces a reference to the minister to a reference to the commission.
SECTION 14: [Credit Union Incorporation Act, section 90] matches amendments made by other provisions of this Bill.
SECTION 15: [Credit Union Incorporation Act, section 93] updates cross-references to match other provisions of this Bill.
SECTION 16: [Credit Union Incorporation Act, section 94] matches amendments made by other provisions of this Bill.
SECTION 17: [Credit Union Incorporation Act, section 95] matches amendments made by other provisions of this Bill.
SECTION 18: [Credit Union Incorporation Act, section 96] removes a reference to the superintendent.
SECTION 19: [Credit Union Incorporation Act, section 97] removes a reference to the superintendent.
SECTION 20: [Credit Union Incorporation Act, section 98] matches amendments made by other provisions of this Bill.
SECTION 21: [Credit Union Incorporation Act, section 104] amends the limitation period for offence proceedings under the Act to match other amendments made by this Bill.
SECTION 22: [Credit Union Incorporation Act, section 108] allows regulations to be made that are contemplated by the Act.
SECTION 23: [Credit Union Incorporation Act, Part 10] requires a review of the Act every 10 years.
Financial Institutions Act
SECTION 24: [Financial Institutions Act, section 1] amends definitions in the Act and adds definitions.
SECTION 25: [Financial Institutions Act, section 1] amends a provision concerning references in the Company Act.
SECTION 26: [Financial Institutions Act, section 9] repeals a provision concerning a reference in the Company Act.
SECTION 27: [Financial Institutions Act, section 10] matches the rules respecting the interpretation of the Company Act with the amendments made by this Bill.
SECTION 28: [Financial Institutions Act, section 12] reflects that deposit business will no longer be carried on by new trust companies incorporated in British Columbia.
SECTION 29: [Financial Institutions Act, sections 12, 61, 187 and 193] replaces regulations that establish forms with forms that are established by the commission.
SECTION 30: [Financial Institutions Act, section 18] replaces the minister with the commission for the purposes of consenting to incorporation of a trust company or insurance company.
SECTION 31: [Financial Institutions Act, sections 18 and 29] replaces prescribed requirements for forms with requirements established by the commission.
SECTION 32: [Financial Institutions Act, sections 23 and 25] changes references to an extraprovincial corporation to specify an extraprovincial insurance corporation or an extraprovincial trust corporation.
SECTION 33: [Financial Institutions Act, sections 23 and 27] removes the requirement that the minister consent to a transfer of incorporation to British Columbia and an amalgamation.
SECTION 34: [Financial Institutions Act, sections 26, 32 to 34, 36, 47, 48, 58, 61, 76, 87, 92, 93, 96, 99, 107, 109, 117, 118, 125, 138, 193, 197, 226, 241, 242, 244, 246 to 248, 251 and 252] replaces references to the superintendent to the Financial Institutions Commission.
SECTION 35: [Financial Institutions Act, sections 28, 38, 39, 50, 51, 69, 214, 245, 248 and 249] replaces references to the minister with references to the Financial Institutions Commission.
SECTION 36: [Financial Institutions Act, section 29] matches the section respecting requirements for consent with the amendments made by this Bill.
SECTION 37: [Financial Institutions Act, section 30] reflects the change to the ability of a trust company to carry on deposit business.
SECTION 38: [Financial Institutions Act, section 38] makes changes to match the amendments made by this Bill.
SECTION 39: [Financial Institutions Act, section 59] specifies that a business authorization is required for a trust company and a credit union unless otherwise authorized under section 70 or by regulation.
SECTION 40: [Financial Institutions Act, section 60] repeals an obsolete provision.
SECTION 41: [Financial Institutions Act, section 61] repeals provisions allowing trust companies to carry on deposit business.
SECTION 42: [Financial Institutions Act, section 65] allows regulations to be made that permit a financial institution to carry on the prescribed activities.
SECTION 43: [Financial Institutions Act, section 66] repeals a provision referring to a trust company that carries on deposit business.
SECTION 44: [Financial Institutions Act, section 67] merges the current section 68 with section 67 and permits regulations to be made respecting what constitutes an adequate capital base.
SECTION 45: [Financial Institutions Act, section 68] repeals section 68, which is now captured in the amendments to section 67.
SECTION 46: [Financial Institutions Act, section 70] allows regulations to exempt corporations carrying on trust business from the requirement to have a business authorization.
SECTION 47: [Financial Institutions Act, section 75] repeals a provision referring to a trust company that carries on deposit business.
SECTION 48: [Financial Institutions Act, section 76] changes a reference to the superintendent to a reference to the commission.
SECTION 49: [Financial Institutions Act, section 79] allows regulations to govern the value of prohibited rebates of premiums on the sale of insurance.
SECTION 50: [Financial Institutions Act, section 81] repeals a provision referring to trust companies that carry on deposit business.
SECTION 51: [Financial Institutions Act, sections 83 to 86] removes references to "trust company" where these are used in the Act in relation to deposit business.
SECTION 52: [Financial Institutions Act, section 84] repeals a provision referring to trust companies that carry on deposit business.
SECTION 53: [Financial Institutions Act, section 86] permits loans and guarantees to be made by a trust company or credit union even if the capital base of the financial institution does not meet the requirements of section 67.
SECTION 54: [Financial Institutions Act, section 87] matches amendments made by other provisions of this Bill.
SECTION 55: [Financial Institutions Act, sections 88 to 90] repeals provisions governing the use of the word "guarantee" and the disclosure of a financial institution's identity.
SECTION 56: [Financial Institutions Act, section 94] permits tied selling but prohibits coercive tied selling.
SECTION 57: [Financial Institutions Act, section 95] repeals provisions respecting confidentiality of customer information.
SECTION 58: [Financial Institutions Act, section 99] matches other amendments made by this Bill.
SECTION 59: [Financial Institutions Act, section 105] requires a director or senior officer to submit personal information in a form established by the commission instead of in the form prescribed by regulation.
SECTION 60: [Financial Institutions Act, section 112] makes a housekeeping amendment and allows regulations to set out written procedures for disclosure to customers.
SECTION 61: [Financial Institutions Act, section 124] changes references to superintendent to match other amendments made by this Bill.
SECTION 62: [Financial Institutions Act, section 127] provides a different deadline for an insurance company whose business is reinsurance to file a financial condition return.
SECTION 63: [Financial Institutions Act, section 131] allows a financial institution to change its financial year end from those specified in the section.
SECTION 64: [Financial Institutions Act, section 133] removes the stipulation that a financial institution's record-keeping facilities must be in British Columbia.
SECTION 65: [Financial Institutions Act, section 134] repeals the rules concerning notice to the superintendent of the location of a financial institution's offices.
SECTION 66: [Financial Institutions Act, section 136] changes the requirements for a financial institution's investment and lending policy and allows regulation to set out requirements for these policies.
SECTION 67: [Financial Institutions Act, section 137] matches the commission's powers respecting investment and lending policies with the changes to section 136.
SECTION 68: [Financial Institutions Act, section 140] stipulates that certain investment and lending limits under section 138 do not apply to a loan, investment or business or activity set out in regulation.
SECTION 69: [Financial Institutions Act, section 141] stipulates that certain investment and lending limits under section 138 do not apply to a financial institution that carries on a business or activity that is set out in regulation.
SECTION 70: [Financial Institutions Act, Part 5] repeals and replaces the Part of the Act that concerns parties that are related to a financial institution.
SECTION 71: [Financial Institutions Act, sections 157 to 160] repeals and replaces the provisions that address extraprovincial corporations and the rules governing these corporations in British Columbia.
SECTION 72: [Financial Institutions Act, section 161] allows the commission to direct that the name of an extraprovincial corporation contain the specified words or words that are set out in regulation.
SECTION 73: [Financial Institutions Act, section 162] removes the stipulation that an extraprovincial corporation's record-keeping facilities must be in British Columbia.
SECTION 74: [Financial Institutions Act, section 163] matches the provision respecting annual statements of an extraprovincial corporation with amendments made by section 36 of this Bill.
SECTION 75: [Financial Institutions Act, section 166] shifts responsibility for the consent to the amalgamation of an extraprovincial corporation from the minister to the commission.
SECTION 76: [Financial Institutions Act, section 168] changes the definition of "insurance adjuster".
SECTION 77: [Financial Institutions Act, section 170] ensures that a partnership or corporation nominates a person to exercise rights and benefits, conferred by a licence, on its behalf on an ongoing basis.
SECTION 78: [Financial Institutions Act, section 171] allows regulations to exempt a person from the requirement to be licensed if acting as an insurance agent or insurance salesperson.
SECTION 79: [Financial Institutions Act, sections 172, 173, 175 and 181 to 185] repeals sections concerning the insurance council that are addressed in the council's rule-making powers included in this Bill.
SECTION 80: [Financial Institutions Act, section 174] repeals and replaces provisions concerning the issue of licenses under this Division.
SECTION 81: [Financial Institutions Act, section 178] makes amendments to match with amendments made in section 52 of this Bill.
SECTION 82: [Financial Institutions Act, section 180] allows regulations to exempt a person from the requirement to have an adjuster's licence.
SECTION 83: [Financial Institutions Act, section 189] changes cross-references to match the amendments made by this Bill.
SECTION 84: [Financial Institutions Act, section 192] removes a reference to provisions that are repealed by this Bill.
SECTION 85: [Financial Institutions Act, section 194] changes cross-references to suit other amendments made by this Bill.
SECTION 86: [Financial Institutions Act, section 197] changes a reference to the superintendent to a reference to the commission.
SECTION 87: [Financial Institutions Act, section 201] allows the commission to delegate its powers except for those listed.
SECTION 88: [Financial Institutions Act, section 207] updates the superintendent's functions to match other amendments made by this Bill.
SECTION 89: [Financial Institutions Act, section 212] changes an annual requirement to a periodic one.
SECTION 90: [Financial Institutions Act, section 214] replaces a reference to the minister with a reference to the commission.
SECTION 91: [Financial Institutions Act, sections 225.1 to 225.3] allows the insurance council to make rules as listed and specifies the procedures for making the rules.
SECTION 92: [Financial Institutions Act, section 226] replaces a reference to the superintendent with a reference to the commission.
SECTION 93: [Financial Institutions Act, section 227] updates the provision to match other amendments made by this Bill.
SECTION 94: [Financial Institutions Act, sections 228 and 229] repeals provisions that deal with subjects now addressed in council rules.
SECTION 95: [Financial Institutions Act, section 231] amends the provision allowing the insurance council to suspend, cancel or restrict licences and impose fines to match other amendments made by this Bill and increases the maximum fines.
SECTION 96: [Financial Institutions Act, section 232] adds the rules of the insurance council to this provision.
SECTION 97: [Financial Institutions Act, section 232.1] specifies the powers of the council on an investigation under section 232.
SECTION 98: [Financial Institutions Act, sections 233 and 234] repeals provisions concerning costs, which are replaced in section 76 of this Bill, and concerning notices to the insurance council as to agents and employees.
SECTION 99: [Financial Institutions Act, section 235] updates cross-references to match other amendments made by this Bill.
SECTION 100: [Financial Institutions Act, section 236] matches the provision with other amendments made by this Bill.
SECTION 101: [Financial Institutions Act, section 237] matches the provision with other amendments made by this Bill.
SECTION 102: [Financial Institutions Act, section 238] updates a cross-reference to match other amendments made by this Bill.
SECTION 103: [Financial Institutions Act, section 241] replaces a reference to the superintendent with a reference to the commission.
SECTION 104: [Financial Institutions Act, section 241.1] specifies the costs that can be ordered by the commission, the superintendent or the insurance council.
SECTION 105: [Financial Institutions Act, section 242] updates cross-references to match other amendments made by this Bill.
SECTION 106: [Financial Institutions Act, section 243] protects from legal action people who come forward with information unless the information was provided maliciously.
SECTION 107: [Financial Institutions Act, section 244] removes a reference to the minister.
SECTION 108: [Financial Institutions Act, section 245] provides court procedures to dispose of assets that have been frozen.
SECTION 109: [Financial Institutions Act, section 248] matches the provision with other amendments made by this Bill.
SECTION 110: [Financial Institutions Act, section 249] removes the minister from procedures to revoke a business authorization.
SECTION 111: [Financial Institutions Act, section 251] allows the court to admit reliable hearsay evidence on an application to have a receiver of a trust company or insurance company appointed.
SECTION 112: [Financial Institutions Act, section 252] matches the provision with other amendments made by this Bill.
SECTION 113: [Financial Institutions Act, section 253] allows regulations to be made that will identify regulation contraventions that attract a penalty.
SECTION 114: [Financial Institutions Act, sections 253.1 to 253.3] empowers the commission to impose administrative penalties.
SECTION 115: [Financial Institutions Act, section 254] matches this provision with section 86 of this Bill.
SECTION 116: [Financial Institutions Act, section 255] amends the limitation period for offence proceedings under the Act to match other amendments made by this Bill.
SECTION 117: [Financial Institutions Act, section 275] matches other amendments made by this Bill.
SECTION 118: [Financial Institutions Act, section 284] replaces a reference to the minister with a reference to the commission.
SECTION 119: [Financial Institutions Act, section 289] amends the regulation-making section of the Act to match other amendments made by this Bill.
SECTION 120: [Financial Institutions Act, Part 11] requires a review of the Act every 10 years.
SECTION 121: [Transitional -- regulations] allows transitional regulations to be made if necessary.
Community Financial Services Act
SECTION 122: [Community Financial Services Act, section 30] is consequential to other amendments made by this Bill.
SECTION 123: [Community Financial Services Act, section 36] is consequential to other amendments made by this Bill.
Corporation Capital Tax Act
SECTION 124: [Corporation Capital Tax Act, section 1] is consequential to other amendments made by this Bill.
Credit Union Incorporation Act
SECTION 125: [Credit Union Incorporation Act, section 98] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
Finance and Corporate Relations Statutes Amendment Act, 1999
SECTION 126: [Finance and Corporate Relations Statutes Amendment Act, 1999, sections 3, 4, 5, 7 to 9, 14 and 15] is consequential to other amendments made by this Bill.
Financial Institutions Act
SECTION 127: [Financial Institutions Act, section 238] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
SECTION 128: [Financial Institutions Act, section 238.1] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
SECTION 129: [Financial Institutions Act, section 242] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
SECTION 130: [Financial Institutions Act, section 242.4] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
SECTION 131: [Financial Institutions Act, section 289] anticipates the Commercial Appeals Commission Repeal Act being brought into force.
Insurance (Captive Company) Act
SECTION 132: [Insurance (Captive Company) Act, section 3] is consequential to other amendments made by this Bill.
Interpretation Act
SECTION 133: [Interpretation Act, section 29] is consequential to other amendments made by this Bill.
Personal Property Security Act
SECTION 134: [Personal Property Security Act, section 64] is consequential to other amendments made by this Bill.
Property Transfer Tax Act
SECTION 135: [Property Transfer Tax Act, section 14] is consequential to other amendments made by this Bill.
School Act
SECTION 136: [School Act, section 59] is consequential to other amendments made by this Bill.
Society Act
SECTION 137: [Society Act, section 1] is consequential to other amendments made by this Bill.
SECTION 138: [Society Act, section 2] is consequential to other amendments made by this Bill.
SECTION 139: [Society Act, section 14] is consequential to other amendments made by this Bill.
SECTION 140: [Society Act, section 14.1] is consequential to other amendments made by this Bill.
SECTION 141: [Society Act, section 33] is consequential to other amendments made by this Bill.
SECTION 142: [Repeal of amendments, section 142] allows for the repeal of provisions that may become inoperative.
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