Vol. 144, No. 24 — June 12, 2010

Registered Products Regulations

Statutory authorities

Bank Act, Cooperative Credit Associations Act and Trust and Loan Companies Act

Sponsoring department

Department of Finance

REGULATORY IMPACT
ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, Deposit Type Instrument Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to sections 448.3 (see footnote a), 459.4 (see footnote b), 566.1 (see footnote c), 576.2 (see footnote d) and 978 (see footnote e) of the Bank Act (see footnote f), sections 385.131 (see footnote g), 385.28 (see footnote h) and 463 (see footnote i) of the Cooperative Credit Associations Act (see footnote j) and sections 434.1 (see footnote k), 444.3 (see footnote l) and 531 (see footnote m) of the Trust and Loan Companies Act (see footnote n), proposes to make the annexed Registered Products Regulations.

Interested persons may make representations concerning 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 Jane Pearse, Director, Financial Institutions Division, Department of Finance, L’Esplanade Laurier, 15th Floor, East Tower, 140 O’Connor Street, Ottawa, Ontario K1A 0G5 (tel.: 613-992-1631; fax: 613-943-1334; email: finlegis@fin.gc.ca).

Ottawa, June 3, 2010

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGISTERED PRODUCTS REGULATIONS

INTERPRETATION

Definitions

1. (1) The following definitions apply in these Regulations.

“institution” « institution »

“institution” means

(a) a bank, as defined in section 2 of the Bank Act;

(b) an authorized foreign bank, as defined in section 2 of the Bank Act;

(c) a retail association, as defined in section 2 of the Cooperative Credit Associations Act; or

(d) a company, as defined in section 2 of the Trust and Loan Companies Act.

“point of service” « point de service »

“point of service” means a physical location at which an institution issues registered products through a natural person in Canada.

Meaning of “registered product”

(2) For the purposes of sections 448.3 and 566.1 of the Bank Act, section 385.131 of the Cooperative Credit Associations Act, section 434.1 of the Trust and Loan Companies Act and these Regulations, “registered product” means a registered education savings plan, a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or any other plan, arrangement or fund to which Division G of Part I of the Income Tax Act applies that is issued by an institution to a natural person.

MANNER OF DISCLOSURE

Clear and simple language

2. (1) The information that is required to be provided by an institution under subsection 448.3(1) or 566.1(1) of the Bank Act, subsection 385.131(1) of the Cooperative Credit Associations Act, subsection 434.1(1) of the Trust and Loan Companies Act or these Regulations must be made in language, and presented in a manner, that is clear, simple and not misleading.

Manner of providing information

(2) The information must be provided in writing and orally, subject to the following exceptions:

(a) in the case of an account that is opened by telephone, or an agreement that is entered into by telephone, the institution need only provide the information orally before opening the account or entering into the agreement; and

(b) in the case of an account that is opened by electronic means, or an agreement that is entered into by electronic means, the institution need only provide the information in writing before opening the account or entering into the agreement.

Accounts opened by telephone

(3) An institution that only provides information orally in accordance with paragraph (2)(a) must provide the same information in writing without delay after opening the account or entering into the agreement.

Accounts opened by electronic means

(4) An institution that only provides information in writing in accordance with paragraph (2)(b) must, before opening the account or entering into the agreement, provide the telephone number of a person who is knowledgeable about the terms and conditions of the registered product.

Date of the disclosure

(5) An institution that provides the information in writing referred to in subsections (2) to (4) by mail is considered to have provided that information to the individual on the fifth business day after the postmark date.

CIRCUMSTANCES UNDER WHICH INFORMATION NEED NOT BE PROVIDED

Exception

3. (1) An institution is not required to provide the information referred to in subsection 448.3(1) or 566.1(1) of the Bank Act, subsection 385.131(1) of the Cooperative Credit Associations Act, subsection 434.1(1) of the Trust and Loan Companies Act or these Regulations if

(a) the account to be opened, or the product or service in respect of which an agreement is to be entered into, will form part of a customer’s existing registered product; and

(b) the customer has been previously advised in writing of all charges in respect of the registered product.

Trust and loan companies

(2) A company, as defined in section 2 of the Trust and Loan Companies Act, is not required to provide the information referred to in subsection 434.1(1) of that Act if the account to be opened, or the product or service in respect of which an agreement is to be entered into, is in respect of a registered product that is not issued by the company.

ADDITIONAL DISCLOSURE

Notice of amendments

4. Before amending any terms and conditions in respect of a registered product, the institution must disclose the proposed amendment in writing to the person to whom the product was issued.

LIST OF CHARGES

Branches and websites

5. (1) An institution must maintain and make available a list of the charges applicable to registered products at each of its branches or offices and at each of its points of service where registered products are offered in Canada and on each of its websites through which registered products are offered in Canada.

Making list available

(2) An institution must, on request, make the list available to its customers and to the public for inspection during business hours at each of the branches and points of service referred to in subsection (1).

COMING INTO FORCE

Registration

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

[24-1-o]

Footnote a
S.C. 2007, c. 6, s. 31 

Footnote b
S.C. 2007, c. 6, s. 37

Footnote c
S.C. 2007, c. 6, s. 89 

Footnote d
S.C. 2007, c. 6, s. 93 

Footnote e
S.C. 2005, c. 54, s. 135 

Footnote f
S.C. 1991, c. 46 

Footnote g
S.C. 2007, c. 6, s. 165 

Footnote h
S.C. 2007, c. 6, s. 170 

Footnote i
S.C. 2005, c. 54, s. 208 

Footnote j
S.C. 1991, c. 48 

Footnote k
S.C. 2007, c. 6, s. 363 

Footnote l
S.C. 2007, c. 6, s. 368 

Footnote m
S.C. 2005, c. 54, s. 449 

Footnote n
S.C. 1991, c. 45 

NOTICE:
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