Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3)

Marginal note:Prudential agreement

1002 The Superintendent may enter into an agreement, called a “prudential agreement”, with an insurance holding company for the purposes of implementing any measure designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it, establishing adequate policies and procedures to protect the insurance holding company against threats to its integrity or security or maintaining or improving its adherence to those policies and procedures.

• Marginal note:Directions — policies and procedures

  (1.1) If, in the opinion of the Superintendent, an insurance holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies and procedures, the Superintendent may direct the insurance holding company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

Marginal note:Minister — terms, conditions and undertakings

• 1016.2 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution that is regulated under an Act of Parliament and to which the approval relates, or that might be affected by it, or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those polices and procedures.

Information

• (a.001) to any federal government agency or body, for purposes related to the Superintendent’s regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

Marginal note:For greater certainty

22.1 For greater certainty, the Superintendent may receive any information that is relevant to the exercise of the Superintendent’s powers or the performance of the Superintendent’s duties or functions.

Marginal note:First amount available

627.22 An institution shall make the prescribed amount of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal immediately or, if there is no prescribed amount, the first $250.

consumer-targeted fraud

consumer-targeted fraud, in relation to a product or service in Canada that is offered, sold or provided by an institution to a natural person other than for business purposes, includes a transaction that is unauthorized or that is authorized as a result of coercion or deception. (fraude ciblant les consommateurs)

Marginal note:Activation of prescribed capability

• 627.131 (1) An institution shall not activate a prescribed capability for a personal deposit account in Canada without first obtaining, in accordance with the regulations, the express consent of the natural person who requested the opening of the account or in whose name it is kept.

• Marginal note:Deactivation of prescribed capability

  (2) An institution shall permit a natural person in whose name a personal deposit account in Canada is kept to deactivate a prescribed account capability.

Marginal note:Limits on withdrawals or transfers

• 627.132 (1) An institution shall permit a natural person in whose name a personal deposit account in Canada is kept to adjust the following limits for each class of withdrawal or transfer of funds that can be made from the account:

  • (a) the maximum amount of a withdrawal or transfer;

  • (b) the number of withdrawals or transfers that can be made in a given period;

  • (c) the maximum amount of all withdrawals or transfers that can be made in a given period; and

  • (d) any prescribed limit.

• Marginal note:Limits set by institution

  (2) An adjusted limit may not, however, exceed any limit set by the institution.

• Marginal note:Prescribed period

  (3) The institution shall ensure that an adjusted limit takes effect within the prescribed period.

Marginal note:Notice

• 627.133 (1) An institution shall, without delay and by electronic means, notify a natural person in whose name a personal deposit account in Canada is kept if

  • (a) an account capability referred to in subsection 627.131(1) is activated;

  • (b) an account capability referred to in subsection 627.131(2) is deactivated; or

  • (c) a limit referred to in subsection 627.132(1) is adjusted.

• Marginal note:Exception

  (2) Subsection (1) does not apply if the natural person has opted out, in writing, of receiving the notice or does not provide the institution with the contact information required to receive it.

Marginal note:Consumer-targeted fraud

• 627.134 (1) An institution shall establish and adhere to policies and procedures to detect and prevent consumer-targeted fraud and to mitigate its impacts.

• Marginal note:Contents

  (2) The policies and procedures shall, together, set out

  • (a) the criteria that the institution uses to decide whether a transaction is suspicious;

  • (b) the criteria that the institution uses to decide whether to suspend or cancel, or take other measures in relation to, a suspicious transaction;

  • (c) how the institution communicates a decision referred to in paragraph (b) to persons affected by a suspension, cancellation or other measure;

  • (d) the criteria that the institution uses to decide whether a natural person is a victim of consumer-targeted fraud and, if so, whether a remedy is available to them;

  • (e) the criteria that the institution uses to decide what types of remedies are available to a natural person who is a victim of consumer-targeted fraud;

  • (f) how the institution communicates a decision referred to in paragraph (e) to a natural person who is a victim of consumer-targeted fraud; and

  • (g) any prescribed criteria.

• Marginal note:Training

  (3) The institution shall provide its employees, representatives, agents or mandataries and other intermediaries who deal with customers who are in Canada with initial and recurrent training on the detection and prevention of consumer-targeted fraud and on the institution’s policies and procedures.

• Marginal note:Annual report — institution

  (4) The institution shall, in accordance with the regulations, prepare an annual report on consumer-targeted fraud in Canada and provide it to the Commissioner.

Marginal note:Annual report — Commissioner

• 627.135 (1) The Commissioner shall, in accordance with the regulations, prepare an annual report on the reports provided under subsection 627.134(4) and provide it to the Minister.

• Marginal note:Confidentiality

  (2) Any information in a report referred to in subsection 627.134(4) that could reasonably be expected to reveal the identity of an institution or of a victim of consumer-targeted fraud is confidential and shall be treated accordingly.

• (p) prescribing account capabilities for the purposes of subsection 627.131(1) or (2);

• (q) respecting the manner in which express consent is to be obtained for the purposes of subsection 627.131(1);

• (r) prescribing limits for the purposes of subsection 627.132(1);

• (s) prescribing periods for the purposes of subsection 627.132(3);

• (t) prescribing criteria that are to be set out in the policies and procedures referred to in subsection 627.134(2);

• (u) respecting the reports that are to be prepared under subsection 627.134(4), including their contents and the time limit for providing them to the Commissioner; and

• (v) respecting the reports that are to be prepared under subsection 627.135(1), including their contents and the time limit for providing them to the Minister.

Marginal note:Definitions

• 12.2 (1) The following definitions apply in this section.

  pre-existing deposit

  pre-existing deposit means a deposit that was made with a local cooperative credit society before the transaction day and that remains outstanding on that day. (dépôt préexistant)

  transaction day

  transaction day, in respect of the assets of a local cooperative credit society acquired by a federal credit union under a purchase agreement referred to in section 236.1 of the Bank Act, means the day on which the acquisition is made. (date de l’opération)

  transition period

  transition period, in respect of a pre-existing deposit, means

  • (a) in the case of a pre-existing deposit that is to be repaid on a fixed day, the period that begins on the transaction day and ends on that fixed day; and

  • (b) in the case of any other pre-existing deposit, the period that begins on the transaction day and ends on the day that is 180 days after that day. (période transitoire)

• Marginal note:Duty to insure certain pre-existing deposits

  (2) Despite paragraph 12(c) and subsection 4(2) of the schedule, but subject to the other provisions of this Act, if a pre-existing deposit is held by a federal credit union that is a member institution and all or a portion of the pre-existing deposit would have been guaranteed or insured under the law of a province if the assets of the local cooperative credit society had not been acquired by the federal credit union, the Corporation must insure the pre-existing deposit during the transition period up to the amount that would have been guaranteed or insured under the law of that province.

• Marginal note:Deemed separate deposit

  (3) During the transition period, a pre-existing deposit, less any withdrawals from the pre-existing deposit, is deemed, for the purposes of deposit insurance with the Corporation, to be a deposit separate from any deposit made on or after the transaction day.

• Marginal note:Deemed withdrawal from pre-existing deposit

  (4) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.

Marginal note:Insurance of amalgamating institutions

17.01 Despite section 17, the Corporation must, in the manner and to the extent provided in this Act and the by-laws, insure the deposits held by a federal credit union that was a local cooperative credit society prior to the issuance of the letters patent in respect of its continuation for the purposes of amalgamation.

Marginal note:Calculation of first premium upon acquisition

23.1 When a federal credit union acquires all or substantially all of the assets of a local cooperative credit society, the premium payable by the federal credit union in respect of those assets is calculated in accordance with section 23, which applies, with any necessary modifications, to those assets as if they belonged to a member institution on the day on which the acquisition is made.

consumer provision

consumer provision means a provision referred to in any of paragraphs (a) to (a.2) of the definition consumer provision in section 2 of the Financial Consumer Agency of Canada Act; (disposition visant les consommateurs)