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This Act is current to October 16, 2019
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Financial Services Authority Act, 2019

[SBC 2019] CHAPTER 14

Assented to May 16, 2019

Contents
Part 1 — Definitions
1Definitions
Part 2 — BC Financial Services Authority
2Establishment
3Authority is agent of government
4Powers and duties of Authority
5Authority has capacity and powers of natural person
Part 3 — Governance
6Board of directors
7Application of Administrative Tribunals Act
8Powers and duties of board
9Chief executive officer
10Statutory decision makers
11Officers and employees
Part 4 — Financial Administration
12Not in force
13Administrative services
14Investment
15Borrowing powers
16No deficit
17Financial administration
Part 5 — General
18Application of Business Corporations Act and Societies Act
19Section 5 of Offence Act
20Personal liability protection
21Appointment of public administrator
22Regulations
Part 6 — Transitional Provisions and Consequential and Related Amendments
23Transition — definition
24Transition — preparation by Authority
25Transition — assets, liabilities and agreements
26Not in force
27Transition — regulations
28-59 Consequential and Related Amendments
60Commencement
Schedules 1-3

Part 1 — Definitions

Definitions

1   In this Act:

"Authority" means the BC Financial Services Authority established under section 2;

"board" means the Authority's board of directors appointed under section 6 (2) [board of directors];

"chief executive officer" means the Authority's chief executive officer appointed under section 9 (1) [chief executive officer];

"director" means a member of the board.

Part 2 — BC Financial Services Authority

Establishment

2   The BC Financial Services Authority is established as a corporation that is without share capital and that consists of the board.

Authority is agent of government

3   (1) The Authority is an agent of the government.

(2) The Authority, as an agent of the government, is not liable to taxation, except to the extent that the government is liable.

Powers and duties of Authority

4   The Authority must exercise the powers and perform the duties of the Authority for the purposes of the following Acts:

(a) this Act.

(b) to (g) [Not in force.]

Authority has capacity and powers of natural person

5   (1) Subject to this Act and the regulations, the Authority has the capacity and powers of a natural person of full capacity.

(2) With the prior approval of the Lieutenant Governor in Council, the Authority may acquire or create a subsidiary, as defined in the Business Corporations Act.

(3) Subject to the regulations, the Authority may enter into agreements with any person, including but not limited to the government of Canada, the government of a jurisdiction outside Canada, the government of a province, the governing body of a first nation or a local government, or with an agent or official of any of them.

Part 3 — Governance

Board of directors

6   (1) The Authority is to be managed by a board of directors.

(2) The board is to consist of at least 2 but not more than 11 directors, as follows:

(a) one director appointed by the Lieutenant Governor in Council and designated as the chair;

(b) other directors appointed by the Lieutenant Governor in Council.

(3) The Lieutenant Governor in Council may, after consultation with the chair, designate one director to be vice chair.

(4) An order of the Lieutenant Governor in Council appointing a director other than the chair may provide that the director's participation as a member of the board is limited to specified matters or classes of matters within the jurisdiction of the board.

(5) A director whose participation is limited by an order under subsection (4) may participate as a director only as limited by the order.

(6) An officer or employee of the Authority is not eligible to be a director.

Application of Administrative Tribunals Act

7   The following provisions of the Administrative Tribunals Act apply to the Authority:

(a) Part 1 [Interpretation and Application];

(b) Part 2 [Appointments], except section 9 [responsibilities of the chair];

(c) section 55 [compulsion protection];

(d) section 59.1 [surveys];

(e) section 60 (1) (i) and (2) [power to make regulations];

(f) section 61 [application of Freedom of Information and Protection of Privacy Act];

(g) any other prescribed provision.

Powers and duties of board

8   (1) The board must supervise the management of the affairs of the Authority.

(2) For its purposes, the board

(a) may exercise the powers conferred on it under this Act or any other Act,

(b) may exercise the powers of the Authority on behalf of the Authority, and

(c) must supervise the delegation of any of its powers or duties.

(3) The board may pass the resolutions and bylaws it considers necessary or advisable for the management and conduct of the affairs of the Authority and for the exercise of the powers and the performance of the duties of the board, including resolutions and bylaws that define the duties of the Authority's officers and employees.

(4) The board may establish committees of the board to assist the board.

(5) For the purposes of subsections (1) and (2), the board may, by resolution or bylaw, delegate any power or duty of the board or the Authority, except

(a) the power to establish committees of the board,

(b) the power to pass resolutions and bylaws,

(c) the duty to appoint a chief executive officer,

(d) the duty to appoint the Superintendent of Financial Institutions, the Superintendent of Pensions and the Registrar of Mortgage Brokers,

(e) the power to delegate, and

(f) any other prescribed power or duty of the board under this Act or any other Act.

(6) The board may, by resolution or bylaw, impose conditions and restrictions on any delegation made under subsection (5).

Chief executive officer

9   (1) The board must appoint a chief executive officer of the Authority.

(2) The board may determine the remuneration and the terms and conditions of employment of the chief executive officer.

(3) The chief executive officer is responsible for the management and administration of the Authority and its officers and employees, and must exercise the powers and perform the duties that are specified in the resolutions and bylaws of the board.

Statutory decision makers

10   Unless the regulations provide otherwise, the board must appoint the chief executive officer to each of the following positions:

(a) the Superintendent of Financial Institutions appointed under section 207 (1) of the Financial Institutions Act;

(b) the Superintendent of Pensions appointed under section 4 (1) of the Pension Benefits Standards Act;

(c) the Registrar of Mortgage Brokers appointed under section 1.1 of the Mortgage Brokers Act.

Officers and employees

11   (1) The chief executive officer may

(a) appoint the officers and employees of the Authority that are necessary for the Authority to exercise its powers and perform its duties,

(b) appoint, from among the officers or employees of the Authority, the deputies of the positions referred to in section 10, and

(c) subject to the board's resolutions and bylaws, if any,

(i) determine the remuneration and the terms and conditions of employment of the officers and employees of the Authority, and

(ii) define the duties of the officers and employees of the Authority.

(2) The Public Service Act and the Public Service Labour Relations Act do not apply to officers and employees of the Authority.

(3) The Public Service Benefit Plan Act applies to officers and employees of the Authority.

(4) The Public Service Pension Plan, continued under the Public Sector Pension Plans Act, applies to the Authority and the Authority's officers and employees.

Part 4 — Financial Administration

Not in force

12   [Not in force.]

Administrative services

13   The Lieutenant Governor in Council may, by order, designate administrative services that the Authority must obtain from the government or from any government corporation, agency, branch, department or other government organization or entity that is specified in the order.

Investment

14   (1) The Authority must place with the Minister of Finance, for investment, any money the Authority receives but does not require before the end of its next fiscal year for exercising its powers and performing its duties.

(2) Money placed with the Minister of Finance under this section is to be treated for all purposes as money placed with that minister under section 40 (5) [investments] of the Financial Administration Act.

Borrowing powers

15   Subject to the approval of the Lieutenant Governor in Council and the Minister of Finance, the Authority may borrow the sums of money it considers necessary or advisable in order to exercise its powers or perform its duties.

No deficit

16   The Authority must not incur or budget for a deficit, as determined in accordance with generally accepted accounting principles, for a fiscal year without the prior written approval of the Minister of Finance.

Financial administration

17   (1) The Authority must establish and maintain an accounting system satisfactory to the Minister of Finance and must, whenever required by that minister, render detailed accounts of the Authority's revenues and expenditures for the period or to the date that the Minister of Finance designates.

(2) The Authority must prepare financial statements in accordance with generally accepted accounting principles.

(3) All books or records of account and other financial records must at all times be open for inspection by the Minister of Finance, or by a person designated by that minister.

(4) The Minister of Finance may direct the Comptroller General to report to the Treasury Board on any aspect of the financial administration of the Authority.

(5) Unless the Auditor General is appointed in accordance with the Auditor General Act as the auditor of the Authority, the Authority must appoint an auditor to audit the accounts of the Authority at least once each year.

(6) The fiscal year of the Authority begins on April 1 in each year and ends on March 31 in the following year.

(7) The Minister of Finance is the fiscal agent of the corporation.

Part 5 — General

Application of Business Corporations Act and Societies Act

18   (1) Subject to subsection (2), the Business Corporations Act does not apply to the Authority.

(2) The Lieutenant Governor in Council may direct that specified provisions of the Business Corporations Act or the Societies Act apply to the Authority.

Section 5 of Offence Act

19   Section 5 of the Offence Act does not apply to this Act or the regulations.

Personal liability protection

20   (1) In this section, "protected individual" means an individual who is or was any of the following:

(a) a director;

(b) the chief executive officer;

(c) an individual acting on behalf of or under the direction of the Authority or the chief executive officer.

(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted

(a) in the exercise or intended exercise of any power under this Act, or

(b) in the performance or intended performance of any duty under this Act.

(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.

(4) Subsection (2) does not absolve the Authority from vicarious liability arising out of anything done or omitted by a protected individual for which the Authority would be vicariously liable if this section were not in force.

Appointment of public administrator

21   (1) The Lieutenant Governor in Council may

(a) appoint a public administrator to exercise the powers and perform the duties of the board under this Act or any other Act if the Lieutenant Governor in Council considers it to be necessary in the public interest, and

(b) specify terms and conditions of the appointment.

(2) Despite any other provision of this Act, on the appointment of a public administrator, the directors cease to hold office.

(3) Subject to subsection (1), the public administrator has the powers and duties of the Authority and of the board.

(4) The public administrator must be paid out of the funds of the Authority.

Regulations

22   (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) for the purposes of section 10, providing that the board may appoint individuals, other than the chief executive officer, to one or more of the positions referred to in that section;

(b) respecting any other matter for which regulations of the Lieutenant Governor in Council are contemplated by this Act.

Part 6 — Transitional Provisions and Consequential and Related Amendments

Transition — definition

23   In this Part, "commission" means the Financial Institutions Commission established under section 201 of the Financial Institutions Act, as it read immediately before the coming into force of this section.

Transition — preparation by Authority

24   The Authority must work with the minister to prepare for the Authority to exercise its powers and perform its duties.

Transition — assets, liabilities and agreements

25   (1) The minister may, by regulation, authorize the transfer to and vesting in the Authority of any right, property, asset, obligation or liability of the government, subject to the terms and conditions set out in the regulation.

(2) The minister may, in writing, assign to the Authority the government's interest in any agreement that is in respect of a right, property or asset that the minister considers may be of assistance to the Authority in carrying out its purposes.

(3) On and after the date on which a transfer and vesting authorized under subsection (1), or an assignment under subsection (2), takes effect,

(a) a reference to the government in any commercial paper, contract, lease, licence, permit or other instrument, agreement or document, related to the right, property, asset, obligation, liability or agreement, is deemed to be a reference to the Authority, and

(b) the right, property, asset, obligation or liability transferred ceases to be the right, property, asset, obligation or liability of the government and becomes the right, property, asset, obligation or liability of the Authority.

(4) A transfer under subsection (1) and an assignment under subsection (2) are effective despite

(a) any provision in any instrument or agreement prohibiting the transfer or assignment, or

(b) any lack of fulfillment of a provision in an instrument or agreement requiring consent, leave or approval respecting the transfer or assignment of the right, property, asset, obligation or liability,

and the breach of the prohibition or lack of fulfillment does not constitute a breach or default of the instrument or agreement.

(5) A regulation under subsection (1) may identify rights, property, assets, obligations and liabilities by name, class or description.

(6) A regulation under subsection (1) may provide that a provision, in an instrument or agreement, that imposes a financial consequence, including, without limitation, a financial penalty or other payment or a requirement for an indemnity, on the government as a consequence of a transfer or assignment of the instrument or agreement does not apply in respect of a transfer or assignment under this section of that instrument or agreement.

(7) No legal proceeding lies or may be commenced or maintained against the Authority in respect of any right, property, asset, obligation or liability transferred under this section if, had there been no transfer, the time for commencing the proceeding would have expired.

Not in force

26   [Not in force.]

Transition — regulations

27   (1) The Lieutenant Governor in Council may make regulations it considers necessary or advisable to

(a) more effectively bring this Act into operation, or

(b) remedy any transitional difficulties, in respect of any matter, encountered in the transition from the commission to the Authority.

(2) A regulation under subsection (1) may be made retroactive to a specified date that is not earlier than the date this section comes into force and, if made retroactive, is deemed to have come into force on the specified date.

(3) This section and any regulations made under it are repealed 3 years after the date this section comes into force.

Consequential and Related Amendments

[Note: See Table of Legislative Changes for the status of sections 28 to 59.]

Section(s)Affected Act
28Business Practices and Consumer Protection Act
Financial Institutions Act
Public Sector Employers Act
29Credit Union Incorporation Act
Financial Institutions Act
30Credit Union Incorporation Act
Financial Institutions Act
31Business Corporations Act
32-35Credit Union Incorporation Act
36Financial Information Act
37-46Financial Institutions Act
47Freedom of Information and Protection of Privacy Act
48-49Insurance Act
50Insurance Premium Tax Act
51Land Owner Transparency Act
52-54Mortgage Brokers Act
55-58Pension Benefits Standards Act
59Public Service Labour Relations Act

Commencement

60   This Act comes into force by regulation of the Lieutenant Governor in Council.

Schedules 1-3

[Not in force.]