Vol. 136, No. 29 — July 20, 2002

Regulations Amending the Regulations Respecting the Election of Directors of the Canadian Wheat Board

Statutory Authority

Canadian Wheat Board Act

Sponsoring Agency

Canadian Wheat Board

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The draft regulations would amend the existing Canadian Wheat Board (CWB) Election of Directors Regulations. The specific amendments are as follows:

— modify the current definition of third parties to ensure that it applies to collectives and coalitions and not just individuals;

— require that all election advertising display the name of the sponsoring individual or group; and

— require third party interveners to file a report on their election expenses with the Election Coordinator at the end of the election period, with the report to specify who contributed money to the third party for these purposes.

In addition to the above, the draft regulations would also amend the Regulations to address two minor house-keeping issues which were raised in a February 20, 2002 letter from the Standing Joint Committee for the Scrutiny of Regulations. These amendments would:

— delete the word "and" at the end of the English version of paragraph 10(d) of the existing Regulations and add it to the end of paragraph 10(c). In addition, paragraph 10(d) would be changed so that it ends with a period rather than a semi-colon; and

— provide a greater degree of clarity in connection with section 14(2) of the Regulations, which provides that, in order to obtain a return of their deposit, candidates must provide the election coordinator with all necessary financial statements and accountings.

One final house-keeping amendment would clarify the wording in section 27, which requires third party interveners to register with the Election Coordinator prior to incurring any advertising expenses.

Alternatives

The amended CWB Act does not provide an alternative to having ten of the directors elected by producers.

Benefits and Costs

Section 3.07, subparagraph(b) of the CWB Act provides for the CWB paying the costs of the election.

Consultation

Should Special Committee of Council give its approval for pre-publication, the draft regulations will appear in the Canada Gazette Part I for a 15-day public comment period.

Compliance and Enforcement

An Election Coordinator will be hired by the CWB to run the election in compliance with the regulations and to ensure the integrity of the balloting and counting process.

Contacts

Bruce Hayes, Senior International Commodity Officer, International Markets Analysis, Grains and Oilseeds Division, Market and Industry Services Branch, Agriculture and Agri-Food Canada, Sir John Carling Building, Ottawa, Ontario K1A 0C5, (613) 759-7641; and David Byer, Legal Counsel, Justice Canada, Commercial Law Group, Legal Services, Industry Canada, Tower East, 1st Floor, 235 Queen Street, Ottawa, Ontario K1A 0H5, (613) 957-8143.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 3.06 (see footnote a)  of the Canadian Wheat Board Act, proposes to make the annexed Regulations Amending the Regulations Respecting the Election of Directors of the Canadian Wheat Board.

Interested persons may make representations with respect to the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Howard Migie, Director General, Adaptation and Grains Policy, Room 409, Sir John Carling Building, 930 Carling Avenue, Ottawa, Ontario, K1A 0C5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE REGULATIONS RESPECTING THE ELECTION OF DIRECTORS OF THE CANADIAN WHEAT BOARD

AMENDMENTS

1. Paragraphs 10(2)(c) and (d) of the English version of the Regulations Respecting the Election of Directors of the Canadian Wheat Board (see footnote 1) are replaced by the following:

(c) subject to subsection (4), a director of a grain company or an employee or an officer of, or a professional consultant to, the Corporation, a grain company, the Government of Canada or a province; and
(d) the election coordinator or any other person employed in the conduct of the election.

2. Subsection 14(2) of the Regulations is replaced by the following:

(2) Subject to subsection (2.1), the election coordinator shall return the deposit referred to in paragraph 11(1)(f) if

(a) in accordance with section 15, the candidate withdraws from the election within 14 days after the day the election coordinator issues the receipt in respect of the deposit;
(b) the candidate is defeated; or
(c) the candidate is elected.

(2.1) The deposit shall be returned to the candidate, provided that

(a) in the case referred to in paragraph (2)(a), the candidate submits to the election coordinator a statement that contains

(i) the name of each donor who made a donation of money or of goods or services over $100 to the candidate and the amount,
(ii) an accounting of election expenses made during the election period, and
(iii) a statutory declaration attesting to the accuracy and completeness of the information referred to in subparagraphs (i) and (ii); and

(b) in the cases referred to in paragraphs (2)(b) and (c), the candidate complies with section 26.

3. Section 27 of the Regulations is replaced by the following:

27. (1) Any person who is not a candidate, and any group, shall, prior to incurring any advertising expenses during an election period, register with the election coordinator as a third-party intervenor.

(2) For the purposes of subsection (1), "group" means an unincorporated union, trade association or other group of persons acting together by mutual consent for a common purpose.

4. The Regulations are amended by adding the following after section 28:

28.01 A third-party intervenor shall identify itself in any advertising placed by it and indicate that it has authorized the advertising.

28.02 Each third-party intervenor shall submit to the election coordinator, within two months after the last day of the election period, a statement that contains

(a) the name of each donor who made a donation of money or of goods or services over $100 to the third-party intervenor for the purpose of promoting or opposing a candidate or a group of candidates during the election period;
(b) for each donor, the amount of the donation;
(c) an accounting of advertising expenses made during the election period; and
(d) a statutory declaration attesting to the accuracy and completeness of the information referred to in paragraphs (a) to (c).

COMING INTO FORCE

5. These Regulations come into force on the day on which they are registered.

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Regulations Amending the Canadian International Trade Tribunal Regulations

Statutory Authority

Canadian International Trade Tribunal Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

Description

These Regulations flow from Bill C-50, an Act to Amend Certain Acts as a Result of the Accession of the People's Republic of China to the Agreement Establishing the World Trade Organization (S.C. 2002, c. 19) [hereinafter the "Act"]. This Act gives effect to the rights of Canada pursuant to the Protocol on the Accession of the People's Republic of China to the World Trade Organization ("Protocol") that came into effect on December 11, 2001.

The Act amends the Canadian International Trade Tribunal Act, the Customs Tariff and the Export and Import Permits Act to provide authority to impose safeguard measures to protect Canadian industries from market disruption or threat of market disruption caused by increased imports from the People's Republic of China, or from a significant trade diversion caused by safeguard actions on Chinese imports taken by other World Trade Organization (WTO) Members. Such measures may only be imposed under certain conditions, as determined pursuant to an inquiry by the Canadian International Trade Tribunal (the "Tribunal"). Under the Act, these special safeguard rules will remain in place until December 11, 2013, as provided for under the Protocol.

Pursuant to the requirements of the Act respecting safeguard measures, the annexed Regulations Amending the Canadian International Trade Tribunal Regulations set out factors to be considered by the Tribunal in determining the existence of market disruption or trade diversion respecting goods originating in the People's Republic of China. Factors are also established to determine whether a safeguard order should be extended and whether a complaint has sufficient support from the domestic industry. Finally, the amended Regulations define "other interested parties" to which the Tribunal will send notifications related to a safeguard inquiry.

The annexed Origin Regulations (Safeguard Measures in Respect of the People's Republic of China) defines goods originating in the People's Republic of China for the purposes of the safeguard provisions introduced by the Act.

The Act also amends the Special Import Measures Act to allow the Canada Customs and Revenue Agency sufficient flexibility in conducting anti-dumping investigations with respect to imports from a prescribed country, where their price or cost of production is not determined by market economy conditions. The annexed Regulations Amending the Special Import Measures Regulations provide that the customs territory of the People's Republic of China is a prescribed country for these purposes, until December 11, 2016, as provided for under the Protocol.

Alternatives

There are no practical alternatives to proceeding with these Regulations. They are required to give effect to the Act and they reflect Canada's rights as a Member of the WTO to use special safeguard and anti-dumping rules with respect to imports from the People's Republic of China.

Benefits and Costs

These Regulations allow for a full implementation of the Act and of Canada's rights within the WTO. They will ensure transparency and predictability in safeguard inquiries and in anti-dumping investigations on goods of the People's Republic of China.

There are no cost implications associated with these Regulations.

Consultation

The Government of Canada has consulted with stakeholders throughout the negotiations leading to the accession of the People's Republic of China to the WTO. Stakeholders also had an opportunity to express their views during Parliamentary hearings on Bill C-50. The Regulations are being prepublished to afford all interested persons a thirty-day period in which to submit comments before the Regulations are finalized.

Compliance and Enforcement

The Canada Customs and Revenue Agency and the Canadian International Trade Tribunal will administer the Regulations.

Contact

Guillaume Cliche, International Trade Policy Division, Department of Finance, Ottawa, Ontario K1A 0G5, (613) 947-2085.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraphs 40(a), (c), (k.1) and (n) of the Canadian International Trade Tribunal Act (see footnote b) , proposes to make the annexed Regulations Amending the Canadian International Trade Tribunal 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 publication of this notice, and be addressed to the Director, International Trade Policy Division, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE CANADIAN INTERNATIONAL TRADE TRIBUNAL REGULATIONS

AMENDMENTS

1. The portion of the definition "other interested party" in section 3 of the Canadian International Trade Tribunal Regulations (see footnote 2)  before paragraph (a) is replaced by the following:

"other interested party", for the purposes of subsections 19.02(2), 25(2), 26(2) to (4), 28(1) and (3), 29(2) and (4), 30(4), 30.01(5) and (8), 30.011(6) and (9), 30.012(7) and (10), 30.06(3), 30.07(2) and (3), 30.09(2), 30.22(4), (5) and (9), 30.23(4), (5) and (9), 30.24(4) and 30.25(8), (9) and (13) of the Act, means

2. The portion of subsection 4(1) of the Regulations before paragraph (a) is replaced by the following:

4. (1) For the purposes of commencing an inquiry under subsection 26(1), 30.07(1), 30.22(3), 30.23(3) or 30.25(7) of the Act, the Tribunal shall, in order to determine whether paragraph 26(1)(b), 30.07(1)(b), 30.22(3)(b), 30.23(3)(b) or 30.25(7)(b) of the Act, as the case may be, has been satisfied, take into account whether a domestic producer is

3. The Regulations are amended by adding the following after section 5:

5.1 For the purposes of determining, during an inquiry into a matter referred to the Tribunal pursuant to paragraph 30.21(1)(a) of the Act or an inquiry into a complaint referred to in subsection 30.22(6) of the Act, whether the goods originating in the People's Republic of China that are the subject of the reference or complaint are being imported in such increased quantities or under such conditions as to cause or threaten to cause market disruption to domestic producers of like or directly competitive goods, the Tribunal shall examine, among other factors,

(a) the actual volume of the goods originating in the People's Republic of China that are imported into Canada;
(b) the effect of the imported goods on prices of like or directly competitive goods in Canada; and
(c) the impact of the imported goods on domestic producers of like or directly competitive goods in Canada.

5.2 For the purposes of determining, during an inquiry into a matter referred to the Tribunal pursuant to paragraph 30.21(1)(b) of the Act or an inquiry into a complaint referred to in subsection 30.23(6) of the Act, whether an action causes or threatens to cause a significant diversion of trade into the domestic market in Canada, the Tribunal shall examine, among other factors and to the extent that evidence is reasonably available to support such examination,

(a) the actual or imminent increase in market share of goods originating in the People's Republic of China in Canada;
(b) the nature or extent of the action;
(c) the actual or imminent increase in the importation of goods originating in the People's Republic of China that is due to the action;
(d) the conditions of supply and demand in the domestic market for the like or directly competitive goods; and
(e) the volume of the goods originating in the People's Republic of China that are imported into Canada and into any WTO Member taking an action.

4. The Regulations are amended by adding the following after section 6:

6.1 For the purpose of determining, during an inquiry referred to in subsection 30.25(10) of the Act, whether the order referred to in subsection 30.25(1) of the Act continues to be necessary to prevent or remedy market disruption to domestic producers of like or directly competitive goods, the Tribunal shall review recent developments in the domestic market and in the market of the People's Republic of China relating to goods that are like or directly competitive with the goods that are the subject of the order and evaluate the likely effects of the termination of the existing order on the basis of, among others, the factors set out in section 5.1.

COMING INTO FORCE

5. These Regulations come into force on the day on which section 4 of An Act to amend certain Acts as a result of the accession of the People's Republic of China to the Agreement Establishing the World Trade Organization, chapter ___ of the Statutes of Canada, 2002, comes into force.

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Origin Regulations (Safeguard Measures in Respect of the People's Republic of China)

Statutory Authority

Customs Tariff

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see Regulations Amending the Canadian International Trade Tribunal Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraph 16(2)(a) of the Customs Tariff (see footnote c) , proposes to make the annexed Origin Regulations (Safeguard Measures in Respect of the People's Republic of China).

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 publication of this notice, and be addressed to the Director, International Trade Policy Division, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

ORIGIN REGULATIONS (SAFEGUARD MEASURES IN RESPECT OF THE PEOPLE'S REPUBLIC OF CHINA)

INTERPRETATION

1. For the purpose of these Regulations, "People's Republic of China" means the customs territory of the People's Republic of China, including border trade regions and minority autonomous areas, Special Economic Zones, open coastal cities, economic and technological development zones and other areas where special regimes for tariffs, taxes and regulations are established, but, for greater certainty, not including any part of the customs territory of a Member of the World Trade Organization other than the People's Republic of China.

GOODS ORIGINATING IN THE PEOPLE'S REPUBLIC OR CHINA

2. For the purposes of sections 77.1 to 77.8 of the Customs Tariff, sections 30.2 to 30.25 of the Canadian International Trade Tribunal Act and section 5.4 of the Export and Import Permits Act, a good originates in the People's Republic of China if it is grown, produced or manufactured in the People's Republic of China.

COMING INTO FORCE

3. These Regulations come into force on the day on which sections 4, 7 et 13 of an Act to amend certain Acts as a result of the accession of the People's Republic of China to the Agreement Establishing the World Trade Organization, chapter ___ of the Statutes of Canada, 2002, come into force.

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Regulations Amending the Special Import Measures Regulations

Statutory Authority

Special Import Measures Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see page see Regulations Amending the Canadian International Trade Tribunal Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 20(1) and paragraph 97(1) of the Special Import Measures Act (see footnote d) , proposes to make the annexed Regulations Amending the Special Import Measures 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 publication of this notice, and be addressed to the Director, International Trade Policy Division, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SPECIAL IMPORT MEASURES REGULATIONS

AMENDMENT

1. The Special Import Measures Regulations (see footnote 3)  are amended by adding the following after section 17:

17.1 (1) For the purposes of subsection 20(1) of the Act, the customs territory of the People's Republic of China is a prescribed country.

(2) This section ceases to have effect on December 11, 2016.

COMING INTO FORCE

2. These Regulations come into force on the day on which section 16 of An Act to amend certain Acts as a result of the accession of the People's Republic of China to the Agreement Establishing the World Trade Organization, chapter ___ of the Statutes of Canada, 2002, comes into force.

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Charges for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002

Statutory Authority

Office of the Superintendent of Financial Institutions Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

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 eighth of several packages of regulations that will be brought forward to complete the policy intent of the FCA Act. The first, second, third, fourth and sixth groups of regulations were published in the Canada Gazette, Part II on October 24, 2001, November 21, 2001, March 13, 2002, April 10, 2002, and June 19, 2002, respectively. A fifth and seventh package were pre-published in the Canada Gazette, Part I on March 16, 2002, and May 25, 2002, respectively.

This document discusses the regulatory impact of the following proposed new regulation:

Charges for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002

Under the Office of the Superintendent of Financial Institutions Act, the Governor in Council may make regulations prescribing charges for any service provided by, or on behalf of, the Superintendent. The current Regulations are being amended to reflect the changes brought about by the FCA Act. Specifically, the Schedule is being amended to adjust certain titles of existing user pay items, to make the user pay scheme applicable to bank holding companies and insurance holding companies, as well as to capture various other new approvals and services.

The format of the current Schedule has also been modified to include the relevant references in the Act for each item in order to be more user-friendly and transparent. Items that do not refer to any legislative provisions (e.g. requests for written interpretations) are grouped in a separate Schedule and remain in the same format as they are now. The Schedules have also been re-ordered based on the amount charged, from highest to lowest.

Regulations Amending the Notices of Uninsured Deposits Regulations
Shared Premises Regulations (Banks)

While the Financial Consumer Agency of Canada Act allows retail and wholesale banks to co-exist in the same group, it prohibits the sharing of premises by wholesale and retail banking institutions, subject to regulations. The Shared Premises Regulations (Banks) removes the prohibition on the sharing of premises by wholesale and retail banks, subject to certain conditions (e.g. maintaining a separate desk for opening wholesale accounts).

The Notices of Uninsured Deposits Regulations requires banks to provide disclosure to customers when a deposit account is not covered by CDIC insurance. The Regulations Amending the Notices of Uninsured Deposits Regulations will amend the existing regulations to include a provision requiring additional disclosure by a wholesale bank when opening an account at a premise that it shares with a retail bank.

It is expected that around 20 regulations will be brought forward for publication within the next few 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 to round out the implementation 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 creation of the Financial Consumer Agency of Canada (FCAC) 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:

— The Charges for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002 introduce several new user pay items and modify certain existing ones. However, OSFI will not retain any user fee revenues for its own account, as the user pay approach has been structured to be revenue neutral by industry. What this means is that any fee revenue collected from institutions in a given industry will be deducted from OSFI's annual supervisory costs allocated to that industry. The residual balance of the supervisory costs will continue to be recovered from institutions in each industry using a formula-based annual assessment.

— The Act allows a bank to separate its wholesale and retail operations into two distinct organizations. However, in doing so, the Act requires that these organizations have separate and distinct premises. Any burden imposed on banks as a result of the Shared Premises Regulations (Banks) and Regulations Amending the Notices of Uninsured Deposits Regulations is more than offset by the benefits gained from allowing their wholesale and retail operations to share premises.

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 regulation were shared with stakeholders and, wherever feasible, their comments have been reflected in revisions. 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

— 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

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, 15th Floor, East Tower, 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, pursuant to sections 23.1(see footnote e)  and 38(see footnote f)  of the Office of the Superintendent of Financial Institutions Act(see footnote g) , proposes to make the annexed Charges for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002.

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 publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

CHARGES FOR SERVICES PROVIDED BY THE OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS REGULATIONS 2002

INTERPRETATION

1. The words and expressions used in these Regulations have the same meaning as in the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, and the Trust and Loan Companies Act, as the case may be.

CHARGES

2. The charge to be paid for the consideration by the Superintendent of an application to obtain a document described in column 1 of Schedule 1 or for any other service described in that column, is the amount set out in column 2.

3. The charge to be paid for a service described in column 1 of Schedule 2 is the amount set out in column 2.

4. The charge to be paid for actuarial services provided by the Chief Actuary of the Office of the Superintendent of Financial Institutions in respect of requests for services ancillary to the mandate of the Chief Actuary under the Canada Pension Plan or the Public Pensions Reporting Act, other than the services that the Chief Actuary is expressly required by those Acts to provide, is $150 per hour.

REPEAL

5. The Service Charges (Office of the Superintendent of Financial Institutions) Regulations (see footnote 4)  are repealed.

COMING INTO FORCE

6. These Regulations come into force on the day on which they are registered.

SCHEDULE 1
(section 2)

Item	Column 1					Column 2
	Short-form Description of Document or Service1	Act Reference				Charge ($)
		Bank Act	Trust and Loan Compa- nies Act	Insu- rance Compa- nies Act	Coope- rative Credit Associa- tions Act
1.	Letters patent of incorpo- ration	22 671	21	22 708	23	20,000
2.	Letters patent of continuance	33 682	31	32 719	N/A	20,000
3.	Order permitting a foreign bank to carry on business in Canada	524(1)	N/A	N/A	N/A	20,000
4.	Order approving the insuring in Canada of risks by a foreign body corporate	N/A	N/A	574	N/A	20,000
5.	Letters patent of amalga- mation	228 808	233	251 862	231	10,000
6.	Approval of an agreement respecting the sale of all or substantially all assets	236	241	N/A	N/A	10,000
7.	Approval of the acquisition or increase of a significant interest	373 875	375	407 927	354	10,000
8.	Approval of a purchase, reinsurance or transfer of policies, a reinsurance against risks undertaken by the company, or a sale of assets	N/A	N/A	254 587.1	N/A	5,000
9.	Approval of the acquisition of control of, or the acquisition or increase of a substantial investment in, an entity	468(5) 468(6) 930(5) 930(6)	453(5) 453(6)	495(7) 495(8) 554(5) 971(5) 971(6)	390(5) 390(6)	5,000
10.	Approval to retain control of, or to continue to hold a substantial investment in, an entity for longer than 90 days	471(4) 522.14(4) 933(3)	456(4)	498(4) 557(4) 974(3)	393(4)	5,000
11.	Permission to retain control of, or to hold a substantial investment in, an entity for an indeter- minate period	471(5) 933(4)	456(5)	498(5) 974(4)	393(5)	5,000
12.	Approval, for an indeter- minate period, to retain control of, or to hold a substantial investment in, an entity that was acquired by way of a loan workout or realization of a security interest	472(7) 473(5) 522.15(3) 934(6) 935(4)	457(7) 458(5)	499(7) 500(5) 558(7) 559(5) 975(6) 976(4)	394(7) 395(5)	5,000
13.	Order increasing the aggregate financial exposure limit	495.2(3)	483.2(3)	528.2(3)	N/A	5,000
14.	Order exempting a foreign bank from certain provisions of Part XII of the Bank Act	509(1)	N/A	N/A	N/A	5,000
15.	Order approving a foreign bank or an entity associated with a foreign bank to carry out any activity described in section 522.22 of the Bank Act	522.22	N/A	N/A	N/A	5,000
16.	Desig- nation order	508	N/A	N/A	N/A	5,000
17.	Authori- zation for the release of assets in Canada	599	N/A	650	N/A	3,500
18.	Exemption from the require- ment to maintain and process information or data in Canada	245 (with modifi- cations required, as the case may be, under section 598) 822	250	268 (with modifi- cations required, as the case may be, under section 649) 876	242	3,000
19.	Approval of the creation of a security interest	419	419	470	383	3,000
20.	Approval of a time period to do all things necessary to relinquish control of, or a substantial investment in, an entity or to relinquish an increase to a substantial investment in an entity	471(1) 471(2) 522.14(2) 933(1)	456(1) 456(2)	498(1) 498(2) 557(1) 557(2) 974(1)	393(1) 393(2)	3,000
21.	Approval to maintain a represen- tative office of a foreign bank	522	N/A	N/A	N/A	3,000
22.	Approval of a decla- ration of dividend in excess of net income	79(5)	82(5)	83(5)	86(5)	2,500
23.	Letters patent of dissolution	342 344 (with modifi- cations required, as the case may be, under section 869)	347 349	380 382 570.04 570.06 920 922	326 328	2,500
24.	Approval to return amounts transfer- red from segre- gated fund account	N/A	N/A	453 542.03	N/A	2,500
25.	Approval of transac- tions that are part of the restruc- turing of a bank holding company or of an insurance holding company or any entity controlled by such a company and to which self-dealing provisions will not apply	487(2)(e)	N/A	519(2)(f)	N/A	2,500
26.	Approval of asset transac- tions with a related party or of arrange- ments applying to such transac- tions	494(3) 494(4)	482(3) 482(4)	527(3) 527(4)	418(3) 418(3.1)	2,500
27.	Short-term exemption order	973.1	N/A	N/A	N/A	2,500
28.	Letters patent of, or approval of, continuan- ce or amalga- mation under any other Act of Parliament or any Act of the legislature of a province	39.2 689	38(1)	39(1) 726	32(1)	2,500
29.	Consent for purchase or redemp- tion of shares or member- ship shares	71 715	74	75 754	79	2,000
30.	Approval of special resolution for reduction of stated capital	75 718	78	79 757	82	2,000
31.	Approval of the making or acquisition of commer- cial loans, or the acquisition of control of an entity that holds commer- cial loans, if the total value of commer- cial loans held exceeds the specified limit	N/A	462	504	N/A	2,000
32.	Approval of amend- ment to by-laws to change name	217(3) (with modifi- cations required, as the case may be, under section 802)	222(3)	238(3) 544.1 851(3)	221(2)	2,000
33.	Variation of an order approving the commen- cement and carrying on of business of a body corporate or approving the insuring in Canada of risks by a foreign body corporate	54 534(6)	58	59 586(1) 657(4)	62	2,000
34.	Approval for the issuance of shares or other securities in conside- ration for property	65 80 709 723	68 83	69 84 748 762	74 87	2,000
35.	Approval to amend an incorpo- rating instrument	215 (with modifi- cations required, as the case may be, under section 802)	220	224 849	219	2,000
36.	Extension of the deadline to do all things necessary to relinquish control of, or a substantial investment in, an entity or to relinquish an increase to a substantial investment in an entity	471(3) 472(4) 473(4) 522.14(3) 522.15(2) 934(3) 935(3)	456(3) 457(4) 458(4)	498(3) 499(4) 500(4) 557(3) 558(4) 559(4) 974(2) 975(3) 976(3)	393(3) 394(4) 395(4)	2,000
37.	Approval of an acquisition or a transfer of assets in excess of 10% of the total value of assets	482 944	470	512 569 987	406	2,000
38.	Exemption from require- ment to provide financial statements for non-bank affiliates	522.27	N/A	N/A	N/A	2,000
39.	Approval of an acquisition or a transfer of assets in excess of 5% of the total value of assets from a related party that is not a federal financial institution	495.3	483.3	528.3	N/A	2,000
40.	Reservation of a name	43 697	45	45 734	39	500
41.	Approval to be reinsured by a related party that is not a company or foreign company	N/A	N/A	523 597(1)	N/A	500
42.	Approval of a deposit agreement or of a trust deed to maintain assets in Canada	582	N/A	611	N/A	500

¹ The short-form descriptions set out under Column 1 are provided in order to facilitate the use of these Regulations. In the case of any discrepancy, the statutory provisions shall prevail over the short-form descriptions.

SCHEDULE 2
(section 3)

Item	Column 1	Column 2
	Services	Charge ($)
1.	Written, precedent-setting ruling relating to the quality of capital	4,000
2.	Accreditation of a provincial reinsurer	2,500
3.	Written interpretation of Acts, regulations, guidelines or rulings	2,500
4.	Written, non-precedent-setting confirmation of quality of capital	2,500
5.	Approval of an amendment to an approved asset-to-capital multiple or borrowing multiple	2,000
6.	Approval of the issuance of subordinated debt to a parent	2,000
7.	Approval of a reinsurance trust agreement or of an amendment to a reinsurance trust agreement	2,000
8.	Consent for purchase or redemption of securities other than shares	2,000
9.	Approval of a letter of credit in lieu of assets	500
10.	Copies of any one of the following corporate documents (per request and per body corporate): (a) a certificate of confirmation; (b) a certified copy of letters patent or of incorporation or amalgamation documents; and (c) the corporate history of a body corporate	100 for up to 20 copies plus 3 for each additional copy

[29-1-o]

Footnote a 

S.C. 1998, c. 17, s. 3

Footnote 1 

SOR/98-414

Footnote b 

R.S., c. 47 (4th Supp.)

Footnote 2 

SOR/89-35

Footnote c 

S.C. 1997, c. 36

Footnote d 

S.C. 2002, c. 36, s.

Footnote 3 

SOR/84-297

Footnote e 

S.C. 1999, c. 28, s. 131

Footnote f 

S.C. 2001, c. 9, s. 477

Footnote g 

R.S., c. 18 (3rd Supp.), Part I

Footnote 4 

SOR/99-28

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