Registration

SOR/2008-294 October 15, 2008

CANADA DEPOSIT INSURANCE CORPORATION ACT

By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a) and subsection 25.1(1) (see footnote b) of the Canada Deposit Insurance Corporation Act (see footnote c), hereby makes the annexed By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law.

Ottawa, October 8, 2008

BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION PRESCRIBED PRACTICES PREMIUM SURCHARGE BY-LAW

AMENDMENT

1. Paragraphs 2(1)(a) to (c) of the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (see footnote 1) are replaced by the following:

(a) failing to comply with subsection 8(2) of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to have the practices and controls referred to in that subsection;

(b) failing to comply with one or more provisions of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that require the member institution to provide the Corporation with the information specified in that policy;

(c) failing to comply with section 24 of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to prepare and maintain the records specified in that section and to retain those records for the period of time specified in that section;

COMING INTO FORCE

2. This By-law comes into force on the day on which it is registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the By-law.)

Description

The Board of Directors of the Canada Deposit Insurance Corporation (“CDIC”) made the Prescribed Practices Premium Surcharge By-law (the “Premium Surcharge By-law”) on January 26, 1994, pursuant to paragraph 11(2)(g) and subsection 25.1(1) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”). The Premium Surcharge By-law prescribes the practices where, in the opinion of the Corporation, if a member institution is engaging in such practices, it may warrant a premium surcharge which the Corporation may assess and collect from the member institution in respect of the premium year or any part thereof. The Premium Surcharge By-law was previously amended on July 26, 2001 and April 15, 2005. On October 8, 2008, the Board of Directors once again amended the Premium Surcharge By-law by making the By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (the “Premium Surcharge Amending By-law”).

The Premium Surcharge By-law makes reference to the policy of deposit insurance as prescribed in the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law (the “Policy By-law”). Section 405 of An Act to amend the law governing financial institutions and to provide for related and consequential matters, S.C. 2007, c. 6, (Amending Statute) amended subsection 18(3) of the CDIC Act changing the way in which the provisions of the policy are to be prescribed. The form of the policy is no longer to be prescribed. As a result of this technical change to Section 18(3) of the CDIC Act, in addition to amendments to the Policy By-law, consequential amendments need to be made to the Premium Surcharge By-law to ensure that references to sections of the policy now read as sections of the Schedule to the Policy By-law that prescribe the provisions of the policy.

The Premium Surcharge Amending By-law replaces, in paragraphs 2(1)(a) to (c), the references to the policy of deposit insurance with references to the policy of deposit insurance as prescribed by section 1 of the Policy By-law and as set out in the Schedule to the Policy By-law. The amendments are technical and statutorily driven.

Alternatives

There are no available alternatives. The amendments must be done by way of by-law.

Benefits and costs

The implementation of the Premium Surcharge Amending By-law will ensure that the Premium Surcharge By-law is consistent with the Policy By-law. No costs should be attributed directly to these changes.

Consultation

As the substantive changes are statutorily driven or technical in nature, only consultation by way of pre-publication on April 5, 2008 in the Canada Gazette, Part I, was necessary. No comments were received during the 60-day comment period.

Compliance and enforcement

There are no compliance or enforcement issues.

Contact

Sandra Chisholm
Director, Insurance
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
P.O. Box 2340, Station D
Ottawa, Ontario
K1P 5W5
Telephone: 613-943-1976
Fax: 613-992-8219
Email: schisholm@cdic.ca

Footnote a
R.S., c. 18 (3rd Supp.), s. 51

Footnote b
S.C. 2007, c. 6, s. 408

Footnote c
R.S., c. C-3

Footnote 1
SOR/94-142

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).