Information
Type of document
Transaction instructions
Category
Non deemed approval
Last updated
October 2017
Index A No
7.1
Legislative authorities
- Paragraph 522.22(1)(a) or (b) of the Bank Act (the “Act”).
Information Requirements
The applicant is generally expected to provide:
the name of the applicant, the address of its head office and its jurisdiction of incorporation;
an analysis in support of the applicant’s conclusion that it is required to seek this approval, including an analysis supporting the applicant’s position that it is an entity to which Part XII appliesFootnote 1 (a “Part XII Entity”);
a confirmation of whether:
the applicant currently has, or is currently deemed to have, a financial establishment in Canada (and where this is the case, details in support of the confirmation),Footnote 2 or
the transaction will cause the applicant to have a financial establishment in Canada;
the name of the provincially regulated financial institution (PRFI) or other financial intermediary (OFI) being acquired, the identity of the person(s) from whom the ownership interests in the PRFI or OFI are being acquired, and in the case of a PRFI, the identity of its primary regulator;
description of each of the PRFI’s or OFI’s business activities and, in the case of an OFI, an analysis setting out why each of its business activities are authorizedFootnote 3 and not restrictedFootnote 4;
description of the transaction that will result in the applicant acquiring control of the PRFI or OFI, including:
the rationale for the transaction, and
the names of the parties to the transaction; and
details regarding whether the applicant (or the PRFI, where applicable) requires any regulatory approval, other than under the Act, in connection with the transaction or is required to notify any regulator about the transaction, and where any of these requirements apply, confirmation that they have been met.
Administrative Guidance
For further guidance on the concept of “financial establishment in Canada” and other elements of Part XII of the Act, refer to Advisory No. 2006-01-R1 – Legislative Framework for Foreign Banks.
A PRFI is an entity referred to in paragraphs 468(1)(g) to (i) of the Act (i.e., a provincially established trust, loan or insurance corporation, a provincially established and regulated cooperative credit society, or a federally or provincially established securities dealer).
An OFI is a Canadian entity that engages in any financial intermediary activity that exposes it to material market or credit risk. The following types of entities are not OFIs: a federally regulated entity, a factoring entity, a financial leasing entity, a mutual fund entity or a closed-end fund.
The acquisition of control of a PRFI or OFI by a Part XII Entity generally causes the Part XII Entity and all entities associated with it to have a financial establishment in Canada (where this is not already the case). If the applicant does not currently have a financial establishment in Canada, it will require an approval from the Minister to have one prior to acquiring control of the PRFI or OFI.
Where the acquisition will result in more than one person directly or indirectly acquiring control of the PRFI or OFI, any one of those persons may submit the application for approval on behalf of all others. That person is expected to provide the name, head office address and jurisdiction of incorporation of all persons who will be acquiring control of the PRFI or OFI.
No approval under the Legislative Authorities is required to:
incorporate a PRFI or an OFI;
acquire control of a PRFI or an OFI from a person who is a member of the applicant’s
groupFootnote 5;acquire a substantial investment in (but not control of) a PRFI or an OFI; or
acquire control of an OFI whose financial intermediary activities are limited to providing
services to the applicant or a member of its groupFootnote 6.
For further guidance regarding the acquisition of a PRFI or an OFI (or another type of Canadian entity), refer to Table II of Appendix A to Advisory No. 2006-01-R1 – Legislative Framework for Foreign Banks.
This approval is subject to a service charge.Footnote 7 A wire transfer, cheque or bank draft should be made payable to the Receiver General for Canada.
The following email address should be used for the initial submission of documents in support of requests for approval(s) that are addressed in this document: approvals-approbations@osfi-bsif.gc.ca. Once the initial submission has been received, a case officer will be assigned to the matter. Thereafter, all case-related documents and correspondence should be directed to the case officer.
The information requirements and administrative guidance are intended to satisfy typical applications. They have been derived from OSFI’s experience in assessing applications. Applicants who provide all information and material requested can generally expect a more timely assessment of their applications. As appropriate to the circ*mstances, OSFI may request additional information, take into account other matters, impose terms and conditions, or require undertakings.
Footnotes
- Footnote 1
By virtue of section 508 of the Act.
Return to footnote 1
- Footnote 2
See subsections 507(15) and (16) of the Act.
Return to footnote 2
- Footnote 3
Business activities that are authorized are listed in subsection 522.08(1) of the Act.
Return to footnote 3
- Footnote 4
Business activities that are restricted are generally listed in subsection 522.08(2) of the Act.
Return to footnote 4
- Footnote 5
A member of the applicant’s group for this purpose and for the purpose of item 6(d) below is a “member of foreign bank’s group”, as defined in subsection 507(14) of the Act.
Return to footnote 5
- Footnote 6
See section 2 of the Exemption from Approval for Certain Investments in Intragroup Service Entities Regulations.
Return to footnote 6
- Footnote 7
Return to footnote 7
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Information
The document you provided appears to be a set of transaction instructions related to non-deemed approval in the context of the Bank Act. It outlines the information requirements and administrative guidance for obtaining approval for certain transactions involving financial establishments in Canada. The document specifies the legislative authorities, information requirements, administrative guidance, and exemptions related to the approval process.
Type of Document
The document you provided is a set of transaction instructions.
Transaction Instructions Category
The document falls under the category of non-deemed approval.
Last Updated
The document was last updated in October 2017.
Index
The document contains an index, labeled as "Index A No 7.1."
Legislative Authorities
The relevant legislative authority for the approval process described in the document is Paragraph 522.22(1)(a) or (b) of the Bank Act.
Information Requirements
The applicant is generally expected to provide the following information:
- Name of the applicant, address of its head office, and jurisdiction of incorporation.
- Analysis supporting the applicant's conclusion that seeking approval is required.
- Confirmation of whether the applicant currently has or is deemed to have a financial establishment in Canada, or if the transaction will result in the applicant having a financial establishment in Canada.
- Name of the provincially regulated financial institution (PRFI) or other financial intermediary (OFI) being acquired, identity of the person(s) from whom the ownership interests in the PRFI or OFI are being acquired, and identity of the primary regulator in the case of a PRFI.
- Description of each PRFI's or OFI's business activities and an analysis of why each of its business activities is authorized and not restricted.
- Description of the transaction that will result in the applicant acquiring control of the PRFI or OFI, including the rationale for the transaction and the names of the parties involved.
- Details regarding any other regulatory approval or notification requirements in connection with the transaction.
Administrative Guidance
The document provides administrative guidance on the concept of "financial establishment in Canada" and other elements of Part XII of the Bank Act. For further guidance, it refers to Advisory No. 2006-01-R1 - Legislative Framework for Foreign Banks.
PRFI and OFI Definitions
- PRFI: A provincially regulated financial institution refers to an entity mentioned in paragraphs 468(1)(g) to (i) of the Bank Act, such as a provincially established trust, loan or insurance corporation, a provincially established and regulated cooperative credit society, or a federally or provincially established securities dealer.
- OFI: An other financial intermediary refers to a Canadian entity engaged in any financial intermediary activity that exposes it to material market or credit risk. Certain entities, such as federally regulated entities, factoring entities, financial leasing entities, mutual fund entities, or closed-end funds, are not considered OFIs.
Approval Exemptions
The document states that no approval under the legislative authorities is required for the following:
- Incorporating a PRFI or an OFI.
- Acquiring control of a PRFI or an OFI from a member of the applicant's group.
- Acquiring a substantial investment (but not control) in a PRFI or an OFI.
- Acquiring control of an OFI whose financial intermediary activities are limited to providing services to the applicant or a member of its group.
Service Charge
The approval process described in the document is subject to a service charge. Wire transfer, cheque, or bank draft payments should be made payable to the Receiver General for Canada.
Submission of Documents
The initial submission of documents in support of approval requests should be sent to the email address approvals-approbations@osfi-bsif.gc.ca. Once the initial submission is received, a case officer will be assigned, and all case-related documents and correspondence should be directed to the assigned case officer.
Additional Information and Assessment
The information requirements and administrative guidance provided in the document are intended to satisfy typical applications. Applicants who provide all requested information and material can generally expect a more timely assessment of their applications. However, OSFI (Office of the Superintendent of Financial Institutions) may request additional information, take other matters into account, impose terms and conditions, or require undertakings as appropriate to the circ*mstances.
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