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Vol. 136, No. 51 — December 21, 2002
Information Technology Activities (Property and Casualty Companies) Regulations
Statutory Authority
Insurance Companies Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Information Technology Activities (Authorized Foreign Banks) Regulations.
Notice is hereby given that the Governor in Council, pursuant to sections 501 (see footnote a) and 1021 (see footnote b) of the Insurance Companies Act (see footnote c) , proposes to make the annexed Information Technology Activities (Property and Casualty 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 publication 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.
Ottawa, December 12, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
| Definitions | INFORMATION TECHNOLOGY ACTIVITIES (PROPERTY AND CASUALTY COMPANIES) REGULATIONS |
|---|---|
| INTERPRETATION | |
| Definitions | 1. The following definitions apply in these Regulations. |
| "Act" | "Act" means the Insurance Companies Act. |
| "book value" | "book value", in respect of the shares and ownership interests held by an entity, means the book value reported on the entity's balance sheet on an unconsolidated basis. |
| "member of a property and casualty company's group" | "member of a property and casualty company's group" has the same meaning as in subsection 490(2) of the Act. |
| PRESCRIBED PURPOSE OR CIRCUMSTANCE | |
| Prescribed purpose or circumstance | 2. For the purposes of subparagraph 441(1)(d.1)(iii) of the Act and subject to the approval required under paragraph 441(1)(d.1) of the Act, a property and casualty company may develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used for a purpose or in a circumstance that is materially related to the provision of financial products or services by the property and casualty company or a member of the property and casualty company's group. |
| INVESTMENTS | |
| Prescribed activity | 3. (1) For the purposes of paragraph 495(4)(f) of the Act and subject to subsections (2) and (3), a prescribed activity in relation to an entity is developing, designing, holding, managing, manufacturing, selling or otherwise dealing with any data transmission system, information site, communication device or information platform or portal that is used to provide information services. |
| Limit on size of investment | (2) A property and casualty company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the sum of the following exceeds 5% of the property and casualty company's regulatory capital:
|
| Restricted activities | (3) A property and casualty company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include
|
| EXEMPTION FROM RESTRICTIONS ON INVESTMENTS | |
| Exemption from restrictions | 4. For the purposes of subparagraph 3(3)(f)(ii), subsections 495(6) to (8) of the Act do not apply in determining whether a property and casualty company would be permitted to acquire a substantial investment in an entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 495(1) or (4) of the Act. |
| NON-APPLICATION OF SUBSECTION 495(7) OF THE ACT | |
| Non-application | 5. Subsection 495(7) of the Act does not apply where, under paragraph 495(4)(f) of the Act, a property and casualty company acquires control of, or acquires or increases a substantial investment in, an entity whose business is limited to activities described in subsection 3(1).Nothing in this section limits the operation of subsections 3(2) and (3). |
| COMING INTO FORCE | |
| Coming into force | 6. These Regulations come into force on the day on which they are registered. |
| [51-1-o] |
Information Technology Activities (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 Information Technology Activities (Authorized Foreign Banks) Regulations.
Notice is hereby given that the Governor in Council, pursuant to sections 459 (see footnote d) and 531 (see footnote e) of the Trust and Loan Companies Act (see footnote f) , proposes to make the annexed Information Technology Activities (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 publication of this notice, and be addresses 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.
Ottawa, December 12, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
| Definitions | INFORMATION TECHNOLOGY ACTIVITIES (TRUST AND LOAN COMPANIES) REGULATIONS |
|---|---|
| INTERPRETATION | |
| Definitions | 1. The following definitions apply in these Regulations. |
| "Act" | "Act" means the Trust and Loan Companies Act. |
| "book value" | "book value", in respect of the shares and ownership interests held by an entity, means the book value reported on the entity's balance sheet on an unconsolidated basis. |
| "member of a company's group" | "member of a company's group" has the same meaning as in subsection 449(2) of the Act. |
| PRESCRIBED PURPOSE OR CIRCUMSTANCE | |
| Prescribed purpose or circumstance | 2. For the purposes of subparagraph 410(1)(c.1)(iii) of the Act and subject to the approval required under paragraph 410(1)(c.1) of the Act, a company may develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used for a purpose or in a circumstance that is materially related to the provision of financial products or services by the company or a member of the company's group. |
| INVESTMENTS | |
| Prescribed activity | 3. (1) For the purposes of paragraph 453(2)(f) of the Act and subject to subsections (2) and (3), a prescribed activity in relation to an entity is developing, designing, holding, managing, manufacturing, selling or otherwise dealing with any data transmission system, information site, communication device or information platform or portal that is used to provide information services. |
| Limit on size of investment | (2) A company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the sum of the following exceeds 5% of the company's regulatory capital:
|
| Restricted activities | (3) A company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include
|
| EXEMPTION FROM RESTRICTIONS ON INVESTMENTS | |
| Exemption from restrictions | 4. For the purposes of subparagraph 3(3)(g)(ii), subsections 453(4) to (6) of the Act do not apply in determining whether a company would be permitted to acquire a substantial investment in an entity under subsection 451(2), paragraph 451(3)(b) or (c) or subsection 451(4) or 453(1) or (2) of the Act. |
| NON-APPLICATION OF SUBSECTION 453(5) OF THE ACT | |
| Non-application | 5. Subsection 453(5) of the Act does not apply where, under paragraph 453(2)(f) of the Act, a company acquires control of, or acquires or increases a substantial investment in, an entity whose business is limited to activities described in subsection 3(1).Nothing in this section limits the operation of subsections 3(2) and (3). |
| COMING INTO FORCE | |
| Coming into force | 6. These Regulations come into force on the day on which they are registered. |
| [51-1-o] |
Regulations Amending the Employment Insurance Regulations
Statutory Authority
Employment Insurance Act
Sponsoring Department
Department of Human Resources Development
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The proposed amendments would introduce a new requirement to include an expiry date on 900-series Social Insurance Numbers (SIN). These amendments are generally to enhance the security of the SIN program and reduce the possibility of the SIN being used for illegal purposes or for purposes for which it is not authorized by federal legislation or regulations or for a purpose to which the authority to allow use of the SIN has been delegated to the Treasury Board. There are also a few editorial amendments being proposed to the regulation.
The SIN Program was introduced by Parliament in 1964 to register people with the Unemployment Insurance Commission (now known as Employment Insurance) and the Canada Pension Plan. In 1967, the SIN also became a file identifier for Revenue Canada (now known as Canada Customs and Revenue Agency).
The SIN is a confidential number that is restricted to federal income-related information. There are a select and limited number of federal government departments and programs specifically authorized to collect the SIN. The authority to collect and use the SIN is tied to a specific legislated purpose, not necessarily to a particular body. For example, an employer can collect an employee's SIN to provide them with Records of Employment and T-4 slips for income tax purposes, as can provincial or municipal agencies to report financial assistance payments for income tax purposes.
Institutions from which a person earns interest or income, such as banks, credit unions and trust companies, must also ask for a person's SIN. Human Resources Development Canada (HRDC) also provides SIN information to various authorized users and agencies, such as the Canada Pension Plan, the Canada Customs and Revenue Agency, the Régie de l'assurance maladie du Québec and the Régie des rentes du Québec.
Since 1976, the Proof-of-Identity Program requires SIN applicants to present documentation to prove their identity and legal status in Canada. This is required for a first time SIN request, as well as for a SIN card replacement and an amendment to a SIN card or record. On average, HRDC processes one million applications for SIN cards annually and this averages 4,000 SIN applications every working day.
Approximately 90 percent of all SIN applications received are sent from the 320 HRDC offices located throughout Canada. At the local HRDC office, the SIN application forms are certified, which includes the verification of the application and proof-of-identity documents, then sent to the Social Insurance Registry (SIR) for processing. The remaining 10 percent of SIN applications received are sent directly to the SIR in Bathurst, New Brunswick by mail.
Subsection 89(1)
Definitions of a "citizen" and a "permanent resident" are being added for purposes of clarity.
Subsection 89(9)
The subsection deals with how SINs would be issued for persons who are in Canada but who are not Canadian citizens or permanent residents. It has been reworded to make its intent clearer. As well, the reference to the Immigration Act in this subsection is being amended to refer to the Immigration and Refugee Protection Act that replaces the old Immigration Act.
Subsection 89(10)
Subsection 89(10) is being amended to indicate how SINs are issued for persons who are not in Canada and are not Canadian citizens or permanent residents. Such SINs are issued to persons who need a SIN in relation to tax issues or as needed for Canadian social program purposes. This proposed amendment will reduce the possibility of identity fraud, an illegal use of a SIN and would also reduce the possibility of a SIN being used for purposes for which it was never intended.
Subsection 89(10.1)
This subsection specifies that persons who are not Canadian citizens or permanent residents, whether they are in Canada or out of Canada, will be issued SINs starting with the digit "9". This is an existing condition in the current subsection 89(10) that only refers explicitly to persons in Canada. The new subsection clarifies that SINs that start with the digit "9" apply to both persons in and out of Canada who are not citizens or permanent residents.
Subsection 89(10.2)
The proposed subsection introduces a new requirement to include an expiry date on SINs issued to persons in Canada who are not Canadian citizens or permanent residents. This proposed amendment will ensure that such SINs are no longer used beyond the date that the person is authorized to be in Canada. If there is no expiry date on the person's authorization to be in Canada, the Social Insurance Number Card shall bear an expiry date of two years after its date of issue. This would reduce the possibility of identity fraud, an illegal use of a SIN and would also reduce the possibility of a SIN being used for purposes for which it was never intended.
Subsection 89(10.3)
The proposed subsection 89(10.3) introduces a new requirement to include a five-year maximum time limit for expiry dates on SINs issued to persons who are not in Canada. This would reduce the possibility of identity fraud, an illegal use of a SIN and would also reduce the possibility of a SIN being used for purposes for which it was never intended.
Subsection 89(10.4)
This subsection proposes a five-year maximum time limit for expiry dates on SIN cards. It would apply to persons both in Canada and out of Canada. This proposed amendment will ensure that such SINs are no longer used beyond the date that the person needs a SIN card or SIN number. This would reduce the possibility of identity fraud, an illegal use of a SIN and would also reduce the possibility of a SIN being used for purposes for which it was never intended.
Subsection 89(10.5)
The proposed subsection 89(10.5) is required to deal with the large number of 900-series SINs already in circulation that do not have an expiry date. HRDC proposes that all persons with such SINs would be provided with information through a media campaign that they must contact the Commission within 12 months of the coming into force of these regulations to reaffirm their identity and prove that they still need a SIN. This would reduce the possibility of identity fraud, an illegal use of a SIN and would also reduce the possibility of a SIN being used for purposes for which it was never intended.
Subsection 89(10.6)
This subsection specifies that the Commission shall issue new 900-series SIN cards with an expiry date to persons who prove that they require such SINs as specified in subsections 89(10.2), (10.3) and (10.5) described above. This includes all persons who require 900-series SINs, regardless of whether or not they are in Canada.
Subsection 89(10.7)
This subsection proposes that a 900-series SIN may not be used in regards to any period after its expiry date, subject to the reissuing provisions described in subsection 89(10.8) below.
Subsection 89(10.8)
The proposed subsection 89(10.8) recognizes that a person with a 900-series SIN may need to have a SIN card reissued after its expiry date. This subsection allows the Commission to issue a new card to a person with the SIN issued to that person when the person proves a continued need for a SIN. Such persons will be required to confirm that they are persons who originally applied for the SIN and that they still has a legitimate need for a SIN.
Subsection 89(11)
The proposed amendment is to change the reference from the Immigration Act to a reference to the Immigration and Refugee Protection Act that replaces the old Immigration Act. Also, the reference to subsection 2(1) of the Immigration Act is being replaced by a reference to section 90 of the Immigration and Refugee Protection Act.
Subsection 89(12)
At present, this subsection provides for a replacement SIN card if a person's SIN card is "lost or destroyed." Subsection 139(4) of the Employment Insurance (EI) Act allows for replacement cards when a card has been "lost, destroyed or defaced". The proposed revised wording refers to cards that have been "lost, destroyed or defaced" to better match the text in the EI Act.
Subsection 89(13)
The proposed editorial amendment is to change the reference from the Immigration Act to a reference to the Immigration and Refugee Protection Act that replaces the old Act. Also, the reference to subsection 2(1) of the Immigration Act is being replaced by a reference to section 90 of the Immigration and Refugee Protection Act.
The other proposed amendment is to add the words "that bear an expiry date as required by subsections (10.2) or (10.3), as applicable" at the end of this subsection. This is to make a link to the amendments proposed for subsections 89(10.2) and (10.3) described above.
Alternatives
An alternative could be to maintain the status quo and not introduce new measures to enhance the security and control of the SIN program. Given the need for enhanced security to prevent and deter identity fraud, the illegal use of a SIN, and misuse of a SIN, the status quo is not recommended.
Amended regulations that assist in enhancing the control of the issuing and managing of SIN numbers and SIN cards are another alternative. This is the preferred option, given the obvious need to enhance the integrity and security of all government programs arising from the tragic events of September 2001.
The proposed amendments would maintain a reasonable balance between the ability of persons to obtain a SIN when necessary and having to provide reasonable proof of their identity, and that such persons need a SIN for a use for which it was legally intended.
Benefits and Costs
The regulatory change requires significant efforts to effectively implement. The administrative cost of implementing the 900-series SINs initiative is $4.10M in fiscal year 2003-04, $2.15M in fiscal year 2004-05, and $1.89M in fiscal years 2005-06 and ongoing.
There are approximately 80 000 existing 900-series SIN cards in circulation that would be replaced with new cards showing an expiry date. Approximately 75 000 new 900-series SIN cards with expiry dates would need to be issued each year. In addition, the inclusion of expiry dates will involve additional program, systems, and corporate support costs.
HRDC would absorb all costs of issuing cards with an expiry date, and related administrative costs, within its existing budget. Applicants would still pay for the replacement of lost cards, but the Government would not require a person to pay for new 900-series cards being issued with an expiry date.
While these costs are significant, the Government believes that they are justified. The proposed amendments would maintain a person's ability to obtain a SIN easily when needed. They would also support the Government's intention to enhance the security and integrity of data in its possession where possible. Finally, it is considered reasonable to have persons who request a SIN prove who they are at the first-time application and periodically thereafter so that a SIN is only used for a purpose for which it was legally intended.
Consultation
HRDC undertook a range of public awareness activities during 2001 and 2002. These activities included brochures, information to clients, and changes to the message on the SIN card itself. Over the same period, police agencies have advised HRDC that identity fraud has included the illegal use of the SIN and, in their reporting, the media has repeatedly noted that illegal use of the SIN has been a significant element of identity fraud.
Given HRDC's experience, advice from police agencies, and the concerns expressed through the media, there is clearly a consensus that there should be an enhancement of the security and integrity of the SIN where possible. The proposed amendments to section 89 of the EI Regulations are, in part, a response to this consensus.
These amendments were prepared in consultation with Legal Services, Insurance Policy, Insurance Services, Systems, Investigation and Control, and the Social Insurance Registry. All parties concur with the proposed amendments.
Compliance and Enforcement
HRDC will assess the effectiveness of its Social Insurance Number public awareness activities during 2002-03. The Department will use the results of that assessment to guide the next phase of its public education efforts, which will begin in 2003-04.
The Department has also initiated a comprehensive review of the Social Insurance Register. That review will assist HRDC to set goals for SIR integrity, define the actions and time frames needed to meet those goals, and implement any additional changes required. This process will be completed by April 2003.
Jim Little, Senior Policy Advisor, Policy and Legislation Development, Insurance Branch, Human Resources Development Canada, 140 Promenade du Portage, 9th Floor, Hull, Quebec K1A 0J9, (819) 997-8628 (Telephone), (819) 953-9381 (Facsimile).
Notice is hereby given that the Canada Employment Insurance Commission, pursuant to subsection 139(4) of the Employment Insurance Act (see footnote g) , proposes to make the annexed Regulations Amending the Employment Insurance 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 Jim Little, Policy and Legislation Development, Insurance Branch, Department of Human Resources Development, 9th Floor, 140 Promenade du Portage, Gatineau, Quebec, K1A 0J9.
Ottawa, December 13, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
REGULATIONS AMENDING THE EMPLOYMENT INSURANCE REGULATIONS
AMENDMENTS
1. (1) Subsection 89(1) of the Employment Insurance Regulations (see footnote 1) is amended by adding the following in alphabetical order:
"Canadian citizen" means citizen as in the Citizenship Act. (citoyen canadien)
"permanent resident" has the same meaning as in subsection 2(1) of the Immigration and Refugee Protection Act. (résident permanent)
(2) Subsections 89(9) to (13) of the Regulations are replaced by the following:
(9) Every application for the registration of a person who is in Canada, who is not a Canadian citizen or a permanent resident and in respect of whom the Minister of Citizenship and Immigration has, in accordance with section 90 of the Immigration and Refugee Protection Act, directed the Commission to issue a Social Insurance Number Card shall be accompanied by, in addition to the documents and information described in subsection (3), the grounds that support the application.
(10) Every application for the registration of a person who is not in Canada, who is not a Canadian citizen or a permanent resident and in respect of whom the Minister of Citizenship and Immigration has, in accordance with section 90 of the Immigration and Refugee Protection Act, directed the Commission to issue a Social Insurance Number Card shall be accompanied by, in addition to the documents and information described in subsection (3), the grounds that support the application.
(10.1) The Commission shall issue to each person described in subsection (9) or (10) who meets the applicable requirements set out in this section a Social Insurance Number Card that bears a number beginning with the digit "9".
(10.2) Subject to subsection (10.4), on or after March 30, 2003, every Social Insurance Number Card issued to a person described in subsection (9) shall bear an expiry date that is
-
(a) if an expiry date is indicated on the person's authorization to remain in Canada as determined by the Minister of Citizenship and Immigration, the same as the expiry date on the authorization; and
(b) if no expiry date is indicated on the person's authorization to remain in Canada as determined by the Minister of Citizenship and Immigration, two years after the date on which the Social Insurance Number Card is issued.
(10.3) On or after March 30, 2003, every Social Insurance Number Card that is issued to a person described in subsection (10) shall bear an expiry date which shall be five years after the date on which it is issued.
(10.4) A Social Insurance Number Card that is issued under subsection (10.1) is valid for a maximum of five years beginning on the date on which it is issued.
(10.5) In the case of a Social Insurance Number Card that was issued to persons other than Canadian citizens or permanent residents before March 30, 2003 and that has no expiry date, the card holder shall, on or before April 3, 2004, provide the Commission with documents and other information that are sufficient to confirm the identity and status of the card holder in accordance with subsection (3) and to establish that the person continues to require a Social Insurance Number Card.
(10.6) The Commission shall issue a new Social Insurance Number Card that bears a number beginning with the digit "9" and an expiry date in accordance with subsection (10.2) or (10.3), as applicable, to the card holder referred to in subsection (10.5) who meets the requirements of that subsection.
(10.7) Subject to subsection (10.8), no person shall use a Social Insurance Number Card or its number on or after
-
(a) in the case of a person described in subsection (10.5), April 3, 2004; and
(b) in the case of any other person, the expiry date indicated on their Social Insurance Number Card.
(10.8) If a Social Insurance Number Card issued under subsection (10.1) has expired, the Commission shall issue a new Social Insurance Number Card to the card holder if the documents and other information provided to the Commission, by the card holder or by a federal department or agency that is referred to in the Treasury Board Manual, Chapter 3-4, as amended from time to time, that relates to the use of the social insurance number, are sufficient to confirm the identity and status of that card holder in accordance with subsection (3) and to establish that the card holder continues to require a Social Insurance Number Card.
(11) Where a person who has been issued a Social Insurance Number Card that bears a number beginning with the digit "9" becomes a Canadian citizen or a permanent resident, the Commission shall, on application by the person, void that Social Insurance Number and, in its place, assign a new Social Insurance Number that begins with a digit other than "9" and issue a new Social Insurance Number Card to the person.
(12) Where a Social Insurance Number Card issued to a person has been lost, destroyed or defaced, the person may apply to the Commission for a new Social Insurance Number Card.
(13) Where a registered person named in an application for a new Social Insurance Number Card under subsection (12) or under section 140 of the Act is not a Canadian citizen or a permanent resident and has previously been assigned a Social Insurance Number that begins with a digit other than "9", the Commission shall void that number and assign a new Social Insurance Number that begins with the digit "9" and issue to the person a new Social Insurance Number Card that bears an expiry date in accordance with subsection (10.2) or (10.3), as applicable.
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
[51-1-o]
S.C. 2001, c. 9, s. 426
S.C. 2001, c. 9, s. 465
S.C. 1991, c. 47
S.C. 2001, c. 9, s. 550
S.C. 2001, c. 9, s. 569
S.C. 1991, c. 45
S.C. 1996, c. 23
SOR/96-332
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