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Vol. 135, No. 36 — September 8, 2001
Cheque Holding Policy Disclosure (Banks) Regulations
Statutory Authority
Bank Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
Cheque Holding Policy Disclosure (Banks) Regulations
Disclosure of Interest (Authorized Foreign Banks) Regulations, Regulations Amending the
Disclosure of Interest (Banks) Regulations, Regulations Amending the
Disclosure of Interest (Trust and Loan Companies) Regulations, Regulations Amending the
Disclosure on Account Opening After Telephone Request (Authorized Foreign Banks) Regulations
Disclosure on Account Opening After Telephone Request (Banks) Regulations
Disclosure on Account Opening After Telephone Request (Trust and Loan Companies) Regulations
Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations
Money Market Mutual Fund Conditions Regulations
Canadian Payments Association Membership Requirements Regulations
Specialized Financing (Bank Holding Companies) Regulations
Specialized Financing (Insurance Holding Companies) Regulations
Supervisory Information (Authorized Foreign Banks) Regulations, Regulations Amending the
Supervisory Information (Bank Holding Companies) Regulations
Supervisory Information (Banks) Regulations, Regulations Amending the
Supervisory Information (Cooperative Credit Associations) Regulations, Regulations Amending the
Supervisory Information (Insurance Companies) Regulations, Regulations Amending the
Supervisory Information (Insurance Holding Companies) Regulations
Supervisory Information (Trust and Loan Companies) Regulations, Regulations Amending the
Description
The Canadian financial services sector has been undergoing rapid change for the better part of a decade. In 1996, the federal government created the task force on the Future of the Canadian Financial Services Sector to review and advise on the nature of change taking place in the sector. In 1998, the task force issued a report which included numerous conclusions and recommendations. These findings were carefully reviewed by committees of both the House of Commons and the Senate. These committees largely endorsed the findings of the task force. Based on the work of the task force and the parliamentary committees, the federal government issued a policy paper in June 1999, entitled Reforming Canada's Financial Services Sector: A Framework for the Future. This document served as the policy foundation for Bill C-8, An Act to Establish the Financial Consumer Agency of Canada and to Amend Certain Acts in Relation to Financial Institutions (FCA Act). Bill C-8 received Royal Assent on June 14, 2001.
The FCA Act provides for significant amendments to the laws governing federal financial institutions. As an integrated package, the amendments brought about by the FCA Act promote efficiency and growth in the financial services sector, foster domestic competition, empower and protect consumers of financial services, and improve the regulatory environment for financial institutions.
A key characteristic of the FCA Act is the use of Regulations to provide for a more flexible regulatory framework for the financial sector. This allows the Government to make modest policy adjustments to the framework in response to significant changes taking place in the global environment in which financial institutions operate. Many Regulations are being proposed or modified in order to achieve this policy objective of creating a more flexible regulatory regime.
The remaining amendments bring existing Regulations in line with changes made to the financial institutions statutes under the FCA Act.
This is the second of several packages of Regulations that will be brought forward to complete the policy intent of the FCA Act. The first package of Regulations was pre-published in the Canada Gazette, Part I, on August 4, 2001.
Of the 19 Regulations included in this package, eight relate to consumer provisions in the legislation. A further seven Regulations are particular to the supervisory structure of the legislation. Two regulations pertain to access to the Canadian payments system while the remaining two regulations deal with permitted investment issues flow from the new holding company regime.
This document discusses the regulatory impact of the following proposed new Regulations:
Cheque Holding Policy Disclosure (Banks) Regulations
The legislation allows the Governor in Council to make regulations specifying information to be disclosed in respect of the policies, procedures or practices relating to products or services offered by a financial institution. The Cheque Holding Policy Disclosure Regulations require that a bank disclose the maximum hold period in respect of a cheque at the time an account is opened and upon the request of a customer. If a cheque is drawn on a financial institution's branch located outside Canada, an estimate of the maximum holding period must be disclosed to the customer. If a bank changes its cheque holding policies, this change must be disclosed to all customers who have a personal deposit account with the bank.
Regulations Amending the Disclosure of Interest (Authorized Foreign Banks) Regulations, Regulations Amending the Disclosure of Interest (Banks) Regulations, Regulations Amending the Disclosure of Interest (Trust and Loan Companies) Regulations
The legislation requires deposit-taking institutions to disclose the rate of interest and how the amount of interest is paid and calculated in respect of an interest-bearing deposit account. The Regulations Amending the Disclosure of Interest Regulations will amend the current Disclosure of Interest Regulations to avoid a conflict with the Disclosure on Account Opening After Telephone Request Regulations. The Disclosure of Interest Regulations will be amended to allow the financial institution to provide the written disclosure of interest paid on the account seven business days after the account is opened in cases where the Disclosure on Account Opening After Telephone Request Regulations apply.
Disclosure on Account Opening After Telephone Request (Authorized Foreign Banks) Regulations, Disclosure on Account Opening After Telephone Request (Banks) Regulations, Disclosure on Account Opening After Telephone Request (Trust and Loan Companies) Regulations
The legislation specifies that when a customer who already has an account at an institution opens a subsequent account over the phone, the terms of the account that the institution is required to disclosed may be communicated orally by telephone. The Disclosure on Account Opening After Telephone Request Regulations prescribe the information to be disclosed to customers. This information includes the fact that only partial information will be disclosed over the phone, the fact that the customer may close the account within 14 business days, interest will be paid on the account, service fees charged for the account and, in the case of an account in a foreign currency, the fact that the account will not be insured by CDIC.
Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations
The Financial Consumer Agency of Canada Act permits regulations setting out how the Financial Consumer Agency of Canada (FCAC) will collect assessment fees from the industry in order to fund its operations. The Regulations define five industry groups: banks and authorized foreign banks, trust and loan companies, retail associations, life companies and property and casualty companies. The total assessment for each deposit-taking institution is based on the size of the institution's domestic assets as a percentage of the aggregate of the domestic assets for all financial institutions in each industry group. The total assessment for insurance companies will be based on the total net premiums received in Canada for each institution as a percentage of the aggregate of total net premiums for all financial institutions in each group. Any interim assessment prepared against a financial institution will be subtracted from the final assessment amount. A minimum assessment fee of $1,000 per year will be charged to all financial institutions listed in the Regulations.
Money Market Mutual Fund Conditions Regulations
Under the new Canadian Payments Act, the Governor in Council may make regulations prescribing the conditions to be met for membership by a money market mutual fund. The proposed definition follows the definition found in National Instrument 81-102, a national rule for mutual funds that has been adopted by the provincial securities regulators.
Canadian Payments Association Membership Requirements Regulations
Under the new Canadian Payments Act, the Governor in Council may make regulations establishing requirements for membership in the Canadian Payments Association. One requirement is that certain deposit-taking institutions have deposits made with them that are insured or guaranteed under a federal or provincial statute. The goal is to provide legal certainty regarding the types of deposit-taking institutions eligible for membership. The second requirement is that securities dealers be members of the Investment Dealers Association or the Bourse de Montréal.
Specialized Financing (Bank Holding Companies) Regulations, Specialized Financing (Insurance Holding Companies) Regulations
The legislation allows regulations to be made expanding the scope of entities in which financial institutions are permitted to invest (e.g., commercial companies). These regulations expand the scope subject to a number of constraints and caps. The constraints imposed on these investments relate to the types of activities in which the entity may engage, the size of the financial institution's investment in the entity, and the length of time that the financial institution can hold the investment. These regulations also provide relief from certain approval and control requirements set out in the legislation. They are similar to regulations contained in the first package of regulations under the FCA Act.
Regulations Amending the Supervisory Information (Authorized Foreign Banks) Regulations, Supervisory Information (Bank Holding Companies) Regulations, Regulations Amending the Supervisory Information (Banks) Regulations, Regulations Amending the Supervisory Information (Cooperative Credit Associations) Regulations, Regulations Amending the Supervisory Information (Insurance Companies) Regulations, Supervisory Information (Insurance Holding Companies) Regulations, Regulations Amending the Supervisory Information (Trust and Loan Companies) Regulations
The legislation allows regulations to be made that would prohibit financial institutions from disclosing certain supervisory information. The existing regulations have been amended to add prudential agreements to the list of supervisory information and to add a reference to the Supervisory Information Regulations for bank holding companies and insurance holding companies in respect of supervisory information concerning affiliates of the institution. New regulations have been created to apply to bank holding companies and insurance holding companies.
It is expected that another 30 to 40 regulations will be brought forward for publication within the next two months. These remaining regulations will complete the policy package envisaged by the June 1999 policy paper and the FCA Act.
Alternatives
The enclosed Regulations are required in order to bring the policy intent underlying the FCA Act into effect. They are required either to maintain the existing policy framework or to round out the implementation of the new policy framework, as outlined in the description. As such, no alternatives to the regulations were considered.
Benefits and Costs
The enclosed Regulations are integral to the overall policy objectives of the FCA Act. As such, their cost-benefit justification cannot be separated from the overall costs and benefits of the legislative package itself.
The FCA Act provides an improved regulatory structure that balances the competing interests of stakeholders. While individual legislative measures may impose some burden on a particular stakeholder group, there are overall net benefits for all stakeholders. For example,
— Consumers benefit from strengthened consumer protection measures, a more transparent complaints handling process, and the advantages brought about by increased competition.
— Financial institutions may face modestly increased regulation through enhanced regulatory rules and a strengthened consumer protection regime. However, they benefit from greater organizational flexibility and broader powers. The Financial Consumer Agency of Canada (FCAC), once created, is expected to have an annual budget of about $7 million, the cost of which will be passed on to financial institutions in the form of allocated assessment.
— The Office of the Superintendent of Financial Institutions (OSFI) may face moderately increased regulatory challenges as a result of provisions intended to encourage new entrants, but the potential cost is offset by improved prudential regulatory powers and increased competition. The exact cost implications for OSFI of the legislative package are not easily calculable. The transfer of responsibility for administering the consumer provisions of the financial institutions legislation to the FCAC will reduce OSFI's costs. The relaxed new entrant requirements may increase OSFI's workload and costs, some of which will be borne by the new entrants. However, the streamlined approval process will reduce the cost of regulation and cost burden directly borne by financial institutions. In all, it is expected that OSFI's cost of regulation will not increase substantially.
Each of the Regulations included in this and subsequent packages is intended to implement a specific aspect of the overall policy structure introduced by the FCA Act. The Regulations may either be beneficial, cost/benefit neutral, or impose a burden on one or more relevant stakeholder groups. Since the weighing of costs and benefits has been done at the legislative level, the Regulations must be examined in light of their contribution to the balance of the overall policy framework that was approved in the FCA Act.
While most Regulations merely round out the policy intention of a provision in the legislation, in a few cases the scope of the burden borne by a stakeholder group is at least partially determined by the Regulations. We note the following Regulations in this regard:
Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations — While the power of the FCAC to levy assessments is contained in legislation, these Regulations specify how it will collect assessment fees from the industry in order to fund its operations. As mentioned above, the FCAC is expected to have an annual budget of approximately $7 million, the cost of which would be passed on through assessments. The OSFI assessment Regulations were used as a model in preparing these Regulations.
Cheque Holding Policy Disclosure Regulations — These Regulations impose a requirement on banks in specifying that when an account is opened or upon the request of a customer, a bank must disclose the maximum period for which it may hold funds in respect of a cheque. These Regulations are part of the stated policy of the balanced policy framework underlying the FCA Act.
Disclosure of Interest Regulations and Disclosure on Account Opening After Telephone Request Regulations — Although the Disclosure on Account Opening After Telephone Request Regulations specify disclosure requirements for deposit-taking institutions, they, in fact, lessen the existing regulatory burden by providing less onerous disclosure requirements in cases where services are provided to existing customers over the telephone. The amendments to the Disclosure of Interest Regulations flow from the Disclosure on Account Opening After Telephone Request Regulations.
Consultation
The FCA Act and its related Regulations are part of a policy development process dating back to 1996. At every stage of the process, stakeholders have been consulted. More recently, working drafts of the enclosed Regulations were shared with stakeholders and, wherever feasible, their comments have been reflected in revisions. For example, concerns were raised about the scope of the Finance Entity Regulations in the previous package of Regulations. In response, the Regulations were amended to narrow their scope of application by eliminating language that might have been interpreted too broadly. Also, consumer groups requested that the upcoming Public Accountability Statements Regulations — to be included in a subsequent package — include a requirement for reference to an institution's priorities in the area of community development. These changes have been made.
The following organizations were consulted:
— Action Réseau Consommateur (Fédération nationale des associations de consommateurs du Québec)
— Bourse de Montréal
— Canadian Bankers Association
— Canadian Community Reinvestment Coalition
— Canadian Life and Health Insurance Association Inc.
— Canadian Securities Administrators
— ComTel (TelPay)
— Consumers' Association of Canada
— CPA Stakeholders Advisory Council
— Credit Union Central of Canada
— Democracy Watch
— Fédération des caisses Desjardins
— Insurance Bureau of Canada
— Insurance Consumer's Group
— Interac Association
— Investment Dealers Association of Canada
— Investment Funds Institute of Canada
— Mutual Fund Dealers Association
— National Anti-Poverty Organization
— Option Consommateurs
— Public Interest Advocacy Centre
— Service d'aide aux consommateurs/Consumer Aid Services
Of the comments received to date on the various Regulations the following are notable in respect of this package:
In response to stakeholder consultations on the Money Market Mutual Fund Conditions Regulations and the Canadian Payments Association Membership Requirement Regulations, centrals and cooperative credit associations have been added to the definition of "Canadian financial institution", and legal certainty has been provided regarding the types of deposit-taking institutions eligible for membership in the Association.
In the 1999 policy paper, Reforming Canada's Financial Services Sector: A Framework for the Future, the Government proposed that money market mutual funds and life insurance companies not be eligible to become direct clearers in the CPA's Automated Clearing Settlement System (ACSS). Certain stakeholders have proposed that the Regulations relating to the requirements for membership include a restriction on the ability of money market mutual funds and life insurance companies to become direct clearers. However, the framework for the operation of the ACSS, including the requirements members must meet to become a direct clearer, is set out in CPA by-laws and rules.
Compliance and Enforcement
The Office of the Superintendent of Financial Institutions will be responsible for ensuring compliance with prudential aspects of the Regulations. The Financial Consumer Agency of Canada will be responsible for ensuring compliance with consumer-related Regulations.
Contact
Gerry Salembier, Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, East Tower, 15th Floor, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-1631 (Telephone), (613) 943-1334 (Facsimile).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council proposes to make the following annexed Regulations:
— pursuant to sections 459.4 (see footnote 1) and 978 (see footnote 2) of the Bank Act (see footnote 3), the Cheque Holding Policy Disclosure (Banks) Regulations;
— pursuant to section 562 (see footnote 4) of the Bank Act, the Regulations Amending the Disclosure of Interest (Authorized Foreign Banks) Regulations;
— pursuant to section 443 (see footnote 5) of the Bank Act, the Regulations Amending the Disclosure of Interest (Banks) Regulations;
— pursuant to section 429 of the Trust and Loan Companies Act(see footnote 6), the Regulations Amending the Disclosure of Interest (Trust and Loan Companies) Regulations;
— pursuant to sections 562 (see footnote 7) and 978 (see footnote 8) of the Bank Act, the Disclosure on Account Opening After Telephone Request (Authorized Foreign Banks) Regulations;
— pursuant to sections 443 and 978 (see footnote 9) of the Bank Act, the Disclosure on Account Opening After Telephone Request (Banks) Regulations;
— pursuant to sections 429 and 531 (see footnote 10) of the Trust and Loan Companies Act, the Disclosure on Account Opening After Telephone Request (Trust and Loan Companies) Regulations;
— pursuant to subsection 18(3) and section 32 of the Financial Consumer Agency of Canada Act (see footnote 11), the Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations;
— pursuant to subsection 35(1) (see footnote 12) of the Canadian Payments Act (see footnote 13), the Money Market Mutual Fund Conditions Regulations;
— pursuant to subsection 35(1) (see footnote 14) of the Canadian Payments Act, the Canadian Payments Association Membership Requirements Regulations;
— pursuant to sections 929 and 936 (see footnote 15) of the Bank Act, the Specialized Financing (Bank Holding Companies) Regulations;
— pursuant to sections 970 and 977 (see footnote 16) of the Insurance Companies Act (see footnote 17), the Specialized Financing (Insurance Holding Companies) Regulations;
— pursuant to sections 607 (see footnote 18) and 978 (see footnote 19) of the Bank Act, the Regulations Amending the Supervisory Information (Authorized Foreign Banks) Regulations;
— pursuant to sections 956 and 978 (see footnote 20) of the Bank Act, the Supervisory Information (Bank Holding Companies) Regulations;
— pursuant to sections 637 (see footnote 21) and 978 (see footnote 22) of the Bank Act, the Regulations Amending the Supervisory Information (Banks) Regulations;
— pursuant to sections 435.1 (see footnote 23) and 463 (see footnote 24) of the Cooperative Credit Associations Act (see footnote 25), the Regulations Amending the Supervisory Information (Cooperative Credit Associations) Regulations;
— pursuant to sections 672.1 (see footnote 26) and 1021 (see footnote 27) of the Insurance Companies Act, the Regulations Amending the Supervisory Information (Insurance Companies) Regulations;
— pursuant to sections 999 and 1021 (see footnote 28) of the Insurance Companies Act, the Supervisory Information (Insurance Holding Companies) Regulations;
— pursuant to sections 503.1 (see footnote 29) and 531 (see footnote 30) of the Trust and Loan Companies Act, the Regulations Amending the Supervisory Information (Trust and Loan Companies) Regulations.
Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of this notice and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, 15th floor, East Tower, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.
August 28, 2001
RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council
CHEQUE HOLDING POLICY DISCLOSURE (BANKS) REGULATIONS
| policy | DISCLOSURE |
|---|---|
| Disclosure of policy | 1. (1) When a person opens, at a bank, a personal deposit account to which the person may deposit cheques, the bank must give the person a written statement that sets out the policies of the bank concerning the holding of funds payable to the person in respect of the cheques, including (a) for a cheque drawn on a financial institution's branch located in Canada, the maximum period during which the bank may hold the funds before releasing them to the person; and (b) for a cheque drawn on a financial institution's branch located outside Canada, an estimate of the maximum period during which the bank may hold the funds before releasing them to the person and the period after which a cheque would be considered invalid by the bank if the bank had not yet received value for it from that branch. |
| Disclosure in agreement or separate document | (2) The statement may be part of an agreement that is signed when the account is opened or it may be in a separate document. |
| Statement to be available on request | 2. A bank must, on request from a person, give the person a statement of the bank's policies referred to in subsection 1(1). |
| Notice of change in policy | 3. If a bank changes its policies referred to in subsection 1(1), the bank must disclose the change to every customer in whose name a personal deposit account is kept with the bank. The disclosure must be made (a) in the case of a customer to whom a statement of account is provided, (i) by means of a notice in writing provided to the customer
at least 30 days before the effective date of the change, or (b) in the case of a customer to whom a statement of account is not provided, by means of a notice that is displayed, for a period of at least 60 days immediately before the effective date of the change, at all branches of the bank where personal deposit accounts are kept. |
COMING INTO FORCE
4. These Regulations come into force on the day on which they are registered.
[36-1-o]
Regulations Amending the Disclosure of Interest (Authorized Foreign Banks) Regulations
Statutory Authority
Bank Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Cheque Holding Policy Disclosure (Banks) Regulations.
PROPOSED REGULATORY TEXT
For the Proposed Regulatory Text, see see the Cheque Holding Policy Disclosure (Banks) Regulations.
REGULATIONS AMENDING THE DISCLOSURE OF INTEREST (AUTHORIZED FOREIGN BANKS) REGULATIONS
AMENDMENTS
1. (1) The portion of subsection 3(1) of the Disclosure of Interest (Authorized Foreign Banks) Regulations(see footnote 31) before paragraph (a) is replaced by the following:
3. (1) Subject to subsection (1.1), an authorized foreign bank shall disclose to a person who requests the authorized foreign bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(2) Section 3 of the Regulations is amended by adding the following after subsection (1):
(1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 564(3) of the Act, an authorized foreign bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(3) The portion of subsection 3(2) of the Regulations before paragraph (a) is replaced by the following:
(2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
[36-1-o]
Regulations Amending the Disclosure of Interest (Banks) Regulations
Statutory Authority
Bank Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Cheque Holding Policy Disclosure (Banks) Regulations.
PROPOSED REGULATORY TEXT
For the Proposed Regulatory Text, see the Cheque Holding Policy Disclosure (Banks) Regulations.
REGULATIONS AMENDING THE DISCLOSURE OF INTEREST (BANKS) REGULATIONS
AMENDMENTS
1. (1) The portion of subsection 3(1) of the Disclosure of Interest (Banks) Regulations(see footnote 32) before paragraph (a) is replaced by the following:
3. (1) Subject to subsection (1.1), a bank shall disclose to a person who requests the bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(2) Section 3 of the Regulations is amended by adding the following after subsection (1):
(1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 445(3) of the Act, a bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(3) The portion of subsection 3(2) of the Regulations before paragraph (a) is replaced by the following:
(2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
[36-1-o]
Regulations Amending the Disclosure of Interest (Trust and Loan Companies) Regulations
Statutory Authority
Trust and Loan Companies Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Cheque Holding Policy Disclosure (Banks) Regulations.
PROPOSED REGULATORY TEXT
For the Proposed Regulatory Text, see the Cheque Holding Policy Disclosure (Banks) Regulations.
REGULATIONS AMENDING THE DISCLOSURE OF INTEREST (TRUST AND LOAN COMPANIES) REGULATIONS
AMENDMENTS
1. (1) The portion of subsection 3(1) of the Disclosure of Interest (Trust and Loan Companies) Regulations(see footnote 33) before paragraph (a) is replaced by the following:
3. (1) Subject to subsection (1.1), a company shall disclose to a person who requests the company to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(2) Section 3 of the Regulations is amended by adding the following after subsection (1):
(1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 431(3) of the Act, a company must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(3) The portion of subsection 3(2) of the Regulations before paragraph (a) is replaced by the following:
(2) A written statement and a general notice referred to in subsection (1) or a written notice referred to in subsection (1.1) shall include
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
[36-1-o]
Disclosure on Account Opening After Telephone Request (Authorized Foreign Banks) Regulations
Statutory Authority
Bank Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Cheque Holding Policy Disclosure (Banks) Regulations.
PROPOSED REGULATORY TEXT
For the Proposed Regulatory Text, see the Cheque Holding Policy Disclosure (Banks) Regulations.
| column 1 | DISCLOSURE ON ACCOUNT OPENING AFTER TELEPHONE REQUEST (AUTHORIZED FOREIGN BANKS) REGULATIONS |
|---|---|
| ORAL DISCLOSURE | |
| Information to be provided orally |
1. For the purpose of subsection 564(3) of the Bank Act, the following information is prescribed as the information to be provided to the customer orally: (a) the fact that the customer is receiving by telephone only part of the information relating to the deposit account charges and terms and that full disclosure in writing will be made within seven business days after the account is opened; (b) the fact that the customer may wait until the receipt of full disclosure in writing before opening the account; (c) the fact that the customer may, within 14 business days after the deposit account has been opened, close the account without charge and, in such a case, is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open; (d) for a fixed-rate interest-bearing deposit account, the interest rate or interest rate tiers applicable to the account and how the amount of interest to be paid is to be calculated; (e) for a variable-rate interest-bearing deposit account, the current interest rate, the manner by which the rate is calculated, how the customer may obtain information on current rates and how the amount of interest to be paid is to be calculated; (f) for an account in a currency other than Canadian currency, the fact that any deposit to the account will not be insured by the Canada Deposit Insurance Corporation; (g) for an account that does not have a fixed monthly charge for a service package, any applicable fees for banking transactions conducted on the account; and (h) for an account that has a fixed monthly charge for a service package, the principal features of the package, including the monthly charge, the number and type of permitted transactions per billing cycle and the applicable charges for additional transactions. |
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
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S.C. 2001, c. 9, s. 125
S.C. 2001, c. 9, s. 183
S.C. 1991, c. 46
S.C. 1999, c. 28, s. 35(1)
S.C. 1991, c. 46
S.C. 1991, c. 45
S.C. 1999, c. 28, s. 35(1)
S.C. 2001, c. 9, s. 183
S.C. 2001, c. 9, s. 183
S.C. 2001, c. 9, s. 569
S.C. 2001, c. 9
S.C. 2001, c. 9, s. 243
S.C. 2001, c. 9, s. 218
S.C. 2001, c. 9, s. 243
S.C. 2001, c. 9, s. 183
S.C. 2001, c. 9, s. 465
S.C. 1991, c. 47
S.C. 1999, c. 28, s. 35(1)
S.C. 2001, c. 9, s. 183
S.C. 2001, c. 9, s. 183
S.C. 1999, c. 28, s. 42
S.C. 2001, c. 9, s. 183
S.C. 1999, c. 28, s. 117
S.C. 2001, c. 9, s. 339
S.C. 1991, c. 48
S.C. 1999, c. 28, s. 126
S.C. 2001, c. 9, s. 465
S.C. 2001, c. 9, s. 465
S.C. 1999, c. 28, s. 144
S.C. 2001, c. 9, s. 569
SOR/99-272
SOR/92-321
SOR/92-322
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