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Financial Institutions Act

[RSBC 1996] CHAPTER 141

Part 10 — Regulations and Transition

Division 1 — Regulations

Regulations

289  (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 that the Lieutenant Governor in Council considers necessary or desirable governing the carrying on of trust business, deposit business and insurance business by financial institutions and others, including governing the carrying on by extraprovincial corporations of their business in British Columbia.

(3) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or desirable

(a) prescribing forms whether or not specifically mentioned in this Act,

(b) requiring the use of forms prescribed under paragraph (a),

(c) respecting information and additional information to be contained in or to accompany

(i)   plans under section 13 (2) (b) or 22 (2) (a) (v), or

(ii)   personal information returns under section 13 (2) (e), 22 (2) (c) or 105,

(d) prescribing fees to be paid in respect of matters connected with the administration of this Act,

(e) respecting the adequacy of liquid assets and the capital base of a financial institution for the purpose of section 67,

(f) for the purpose of section 67,

(i)   prescribing the types of assets and types of liabilities that must be included in determining what constitutes a financial institution's or extraprovincial corporation's capital base,

(ii)   establishing formulae or other methods of determining the value of those prescribed types of assets and types of liabilities, and

(iii)   prescribing the proportion of

(A)  the value of those prescribed types of assets, or

(B)  the extent of those prescribed types of liabilities that constitutes an adequate capital base for a financial institution or extraprovincial corporation,

(f.1) for the purpose of section 67 (2.1),

(i)   prescribing a percentage of the calculated value of a credit union's risk weighted assets,

(ii)   prescribing activities, circumstances and consequences, and

(iii)   establishing matters about which the commission must be satisfied before giving its consent,

(g) imposing conditions respecting

(i)   business authorizations,

(ii)   licences issued under Division 2 of Part 6, or

(iii)   permits issued under section 187 (1),

(g.1) for the purposes of section 76 (1) (c),

(i)   establishing requirements or conditions that must be met by an insurance agent referred to in that section, and

(ii)   establishing circumstances that must be present,

before, during or after negotiating or procuring a contract of insurance,

(g.2) for the purposes of section 76 (1) (e), exempting a person or insurer from the requirement to have a business authorization, unconditionally, on conditions or in specified circumstances,

(h) for the purpose of section 72,

(i)   prescribing criteria for common trust accounts of trust companies and credit unions, and

(ii)   governing the establishment and operation of common trust accounts by trust companies and credit unions,

(i) prescribing financial statements and interim financial statements required under this Act in addition to or instead of any financial statements required under the Business Corporations Act or the Credit Union Incorporation Act,

(i.1) for the purposes of section 178 (3), prescribing a person or class of persons to whom a commission or compensation may be paid, allowed to be paid, offered or promised,

(j) respecting the preparation of financial statements by a financial institution,

(k) prescribing information to be placed before the annual general meeting of a financial institution,

(l) respecting qualifications of auditors of financial institutions,

(m) prescribing responsibilities and duties for the audit committee, the investment and loan committee and the conduct review committee,

(m.1) for the purposes of section 126.17, prescribing matters to be included in an actuary's report,

(n) requiring surety insurance coverage for directors, officers, agents and employees of financial institutions,

(o) governing the business relationships between financial institutions or extraprovincial corporations and others,

(p) for the purpose of section 77, establishing formulae or other methods and their use in valuing claims liabilities and determining what constitutes the adequate reserves,

(p.1) establishing and defining classes of insurance for any purpose of this Act,

(p.2) respecting the solicitation, sale, provision and administration of, or the process for settling claims in relation to, group insurance or creditor's group insurance, including, without limitation,

(i)   respecting the amount and disclosure of compensation payable to a person responsible for arranging, enrolling persons into or administering a contract of group insurance or creditor's group insurance, and

(ii)   respecting the duties and conduct of an insurer or a person referred to in subparagraph (i),

(p.3) requiring an insurer to be a member of a prescribed organization to deal with complaints that are not dealt with to the satisfaction of complainants under section 80.3,

(p.4) respecting the mediation of prescribed disputes in relation to contracts of insurance, including, without limitation,

(i)   requiring an insurer or another party to a dispute to participate in a mediation procedure, and

(ii)   prescribing mediation procedures,

(q) prescribing procedures related to the payment of inactive deposits to the Minister of Finance under section 85 and requiring financial institutions to give notice to depositors in relation to unclaimed deposits and to keep records of notices as are prescribed,

(r) respecting the operation of credit union offices,

(s) respecting disclosure by financial institutions and their agents to a customer of the details of a transaction, including the identity of the parties to the transaction and the time at which the disclosure must be made, and respecting similar disclosure by financial institutions to persons with whom a financial transaction is arranged by a third party in which the financial institution is to provide a service or product to the person,

(t) respecting disclosure by financial institutions and their agents to a customer in respect of whom the financial institution arranges a transaction in which a person other than the financial institution provides a service or product to the customer,

(u) exempting persons or classes of persons from the requirements of regulations made under paragraphs (s) and (t),

(u.1) respecting administrative penalties, including the following:

(i)   prescribing provisions of this Act or the regulations for the purposes of section 253.1 (1) (a) or (b);

(ii)   prescribing a schedule of penalties for the purposes of section 253.1;

(iii)   prescribing the manner and method for paying an administrative penalty,

(v) prescribing the practices and procedures, including the fees for filing an appeal, respecting the tribunal,

(w) prescribing time limits respecting when the tribunal must commence and complete an appeal or processes related to the appeal, including summary procedures, and

(x) respecting costs that may be assessed by the commission, superintendent or council under section 241.1, including but not limited to the maximum amounts of costs that may be assessed.

(4) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or desirable

(a) prescribing for the purpose of section 140

(i)   types of loans and investments and the circumstances and conditions under which a subsidiary of a financial institution may make them, or

(ii)   types of business or activities carried on by a subsidiary of a financial institution,

(b) requiring financial institutions to keep records respecting persons who are related parties in relation to them and specifying the nature and extent of the information to be included in those records,

(c) [Repealed 2004-48-120.]

(d) respecting the replacement of a life insurance contract,

(e) prescribing the duties of insurers and agents in connection with the replacement of a life insurance contract,

(f) respecting the operation and finances of the council,

(f.1) governing the procedures that are to be followed by the council in making and repealing council rules including, but not limited to, publication of the rules,

(f.2) making, amending or repealing a council rule,

(g) subject to the maximum amount prescribed by the Lieutenant Governor in Council, authorizing the council, for the purpose of funding its expenses, to set by order and collect assessments from insurers authorized to carry on insurance business,

(h) prescribing additional responsibilities and duties of the council,

(i) respecting reinsurance under section 78, including, without limiting this power, restricting the extent to which an insurance company may cause itself, or prohibiting an insurance company from causing itself, to be reinsured against risks undertaken under its policies,

(j) [Repealed 2004-48-120.]

(k) prescribing circumstances and conditions for the purposes of section 266,

(l) [Repealed 2008-44-20.]

(m) despite the definition of "credit union" in section 260

(i)   prescribing types of deposits with a central credit union and providing that Division 2 of Part 9 applies to and in respect of the prescribed types of deposit, and

(ii)   for the purposes of Division 2 of Part 9 as it may be applied under subparagraph (i), exercising the powers set out in paragraph (k) in respect of central credit unions and their deposits,

(n) defining a word or expression used but not defined in this Act,

(o) providing that a provision of this Act or the regulations does not apply to or in respect of a person, entity, thing or transaction, and prescribing circumstances in which or conditions on which the provision is disapplied under this paragraph,

(o.1) providing that a provision of the Business Corporations Act, or of the regulations under that Act, applicable to a trust company, an insurance company or an extraprovincial corporation does not apply to or in respect of a person, entity, thing or transaction, and prescribing circumstances in which or conditions on which the provision is disapplied under this paragraph,

(o.2) providing that a provision of the Credit Union Incorporation Act, or of the regulations under that Act, does not apply to or in respect of a person, entity, thing or transaction, and prescribing circumstances in which or conditions on which the provision is disapplied under this paragraph, and

(p) designating a company incorporated before September 15, 1990, to which all or part of the Mutual Fire Insurance Companies Act applies, as a mutual company for the purposes of that Division.

(4.1) A regulation under subsection (3) (p.1) for the purpose of business authorizations may establish and define a class of insurance comprising all types of insurance not otherwise included in a class established under that subsection for that purpose and, if such a class is established and defined, the regulation may delegate to the commission the authority to specify in the business authorization of a particular insurer the types of insurance business the insurer may carry on within that class.

(4.2) A regulation made under subsection (4) (i) may do one or both of the following:

(a) delegate a matter to the commission;

(b) confer a discretion on the commission.

(5) Without limiting subsection (4) (k), a regulation under that provision may classify deposits in a credit union according to ownership, type or special characteristics.

(6) If a regulation is made for the purpose of a provision of this Act other than Divisions 1, 4 and 5 of Part 6, then, unless the regulation otherwise provides, the regulation also applies in respect of that provision as that provision applies for the purposes of Division 1, 4 or 5, as the case may be, of Part 6.

(7) A regulation made under this Act may

(a) be made applicable generally or to a specific person, entity, thing or transaction, or class of persons, entities, things or transactions,

(b) for the purpose of the regulation, define classes of financial institutions and of extraprovincial corporations, other persons or entities, including classes that may include only one financial institution, one person or one entity,

(c) for the purpose of the regulation, define classes of things or transactions, and

(d) provide differently for different persons, entities, things or transactions, or for different classes of persons, entities, things or transactions.

(8) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations of the Lieutenant Governor in Council are contemplated by this Act.

Transfer of disciplinary powers

290  The Lieutenant Governor in Council may

(a) make regulations transferring all of the powers granted to the council under sections 231 to 232.1 from the council to the superintendent, or

(b) repeal a regulation made under paragraph (a),

effective on a prescribed date that is at least 3 months after the date of deposit of the regulation under the Regulations Act.

Division 2 — Transitional Provisions

Validity of loans

291  A loan made contrary to this Act, the Credit Union Act, R.S.B.C. 1979, c. 79, a former Credit Unions Act, a rule or a regulation made under them must not be interpreted as having been, or as being, void, and a person who before now has borrowed or under this Act borrows any money from a credit union and any party to an instrument evidencing or securing such borrowing is liable to repay to the credit union the money so borrowed in accordance with the terms of the instrument and any security given for the loan must be construed as having been, and as being, valid and enforceable from the date of its execution and delivery.

Validity of credit union amalgamations before June 25, 1975

292  An amalgamation of credit unions and an incorporation of a new credit union as a result of the amalgamation before June 25, 1975, under B.C. Regs. 290/68 and 314/68, or under the authority of the Credit Unions Act, S.B.C. 1961, c. 14, is confirmed and validated as of the date of the amalgamation and incorporation, and everything done by a credit union so incorporated or its directors in the exercise of any power or authority granted to the credit union or its directors under its constitution or rules or under those regulations is declared to be done lawfully and with full authority.

Variation of agreements

293  The Lieutenant Governor in Council by regulation may modify, vary or terminate any agreement and regulations pertaining to it entered into under section 72B of the Credit Unions Act, S.B.C. 1961, c. 14.

Part 11 — Review of Act

Review of Act

294  Every 10 years, the government must initiate a review of this Act to determine what changes, if any, should be made.

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