SOR/2005-26720058

20204

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACTAdministrative Monetary Penalties (OSFI) RegulationsP.C.2005-151120058

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsections 23.1(4)a and 25(1)b and section 38c of the Office of the Superintendent of Financial Institutions Actd, hereby makes the annexed Administrative Monetary Penalties (OSFI) Regulations.aS.C. 1999, c. 28, s. 131bS.C. 2001, c. 9, s. 476cS.C. 1997, c. 15, s. 339; S.C. 2001, c. 9, s. 477dR.S., c. 18 (3rd Supp.), Part IInterpretation

1In these Regulations, Act means the Office of the Superintendent of Financial Institutions Act.

2The short-form descriptions that are set out in column 1 of the schedule form no part of these Regulations and are inserted for convenience of reference only.

Violations

3(1)The contravention of a provision of a financial institutions Act that is set out in columns 2 to 5 of an item of the schedule is a violation that may be proceeded with under sections 26 to 37 of the Act.(2)The non-compliance with any order or direction made, any terms and conditions imposed, any undertaking given or any prudential agreement entered into, under a provision of a financial institutions Act that is set out in columns 2 to 5 of an item of the schedule is a violation that may be proceeded with under sections 26 to 37 of the Act.

Classification

4Each violation is classified as a minor, serious or very serious violation, as set out in column 6 of the schedule.

Penalties for Late or Erroneous Filings

5(1)Subject to subsection (2), the penalty in respect of a violation that is classified as minor under any of items 10, 19, 23, 24, 31, 32, 34 to 36, 60, 61, 63 and 69 to 71 of the schedule is(a)if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets less than or equal to $250 million, $100;(b)if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets greater than $250 million but less than or equal to $10 billion, $250; and(c)if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets greater than $10 billion, $500.(2)If a minor violation referred to in subsection (1) committed by a financial institution, bank holding company or insurance holding company is continued on more than one day, the penalty in respect of each of the separate violations that, because of section 35 of the Act, result from that continuation shall be the lesser of the penalty fixed under that subsection and the amount determined by dividing $25,000 by the total number of those separate violations.

Repeal

6[Repeal]

Coming into Force

7These Regulations come into force on the day on which they are registered.

SCHEDULE(Sections 2 to 5)ItemColumn 1Column 2Column 3Column 4Column 5Column 6Short-form Description of ViolationProvisions of the Bank ActProvisions of the Cooperative Credit Associations ActProvisions of the Insurance Companies ActProvisions of the Trust and Loan Companies ActClassification of Violation1Failure to obtain approval of Superintendent for carrying on business48(1) and 534(2)56(1)52(1)52(1)Very serious2Failure to obtain approval of Superintendent for the insuring in Canada of risksN/AN/A573(1)N/AVery serious3Failure to comply with conditions or limitations on an order approving the commencement and carrying on of business53, 54 and 534(5) and (6)61 and 6258(2), 59 and 657(3) and (4)57(4) and 58Very serious4Failure to comply with conditions or limitations on an order approving the insuring in Canada of risksN/AN/A581(2) and 586(1)N/AVery serious5Failure to obtain approval of Superintendent for issuing shares paid for in property65(1) and 709(1)74(1)69(1) and 748(1)68(1)Serious6Holding of own shares70 and 7147874 and 75373Serious7Failure to notify Superintendent of declaration of dividend on time79(2) and 722(2)86(2)83(2) and 761(2)82(2)Minor8[Repealed, SOR/2020-68, s. 1]9Failure to obtain approval of Superintendent for issuing subordinated debt paid for in property80(1) and 723(1)87(1)84(1) and 762(1)83(1)Serious10Failure to file with Superintendent proxy circular, notice of meeting, form of proxy or other documents on time156.05(2)(a) (with modifications required, as the case may be, under section 746)166.05(2)(a)164.04(2)(a) and 789(2)(a)160.05(2)(a)Minor11Failure to establish audit committee157(2)(a) and 747(2)(a)167(2)(a)165(2)(a) and 794(2)(a)161(2)(a)Very serious12Failure to establish conduct review committee157(2)(b)167(2)(b)165(2)(b) and 660(1)(c)161(2)(b)Very serious13Failure to establish procedures to resolve conflicts of interest157(2)(c) and 747(2)(b)167(2)(c)165(2)(c) and 794(2)(b)161(2)(c)Very serious14Failure to designate committee to monitor procedures to resolve conflicts of interest157(2)(d) and 747(2)(c)167(2)(d)165(2)(d) and 794(2)(c)161(2)(d)Very serious15Failure to establish investment or lending policies, standards or procedures157(2)(g), 465, 581, 747(2)(d) and 927167(2)(e) and 387165(2)(h), 492, 551, 615(1), 794(2)(d) and 968161(2)(g) and 450Very serious16Failure to comply with board composition requirements159, 160, 163(1), 164, 749, 750 and 752169, 170 and 171167, 168(1) and (2), 171(1), 172, 796, 797 and 799163, 164, 167(1) and 168Serious17Failure to comply with requirements in respect of self-dealing195(3)200(3)204(3) and 660(2)199(3)Very serious18Failure to report to Superintendent on mandate or responsibilities of conduct review committee or on procedures for complying with self-dealing regime195(4)200(4)204(4) and 660(3)199(4)Minor19Failure to report to Superintendent on time on activities of conduct review committee195(6)200(6)204(6) and 660(5)199(6)Minor20Failure to appoint chief executive officer, principal officer or chief agent196(1) and 536(1)N/A205 and 579(3)200(1)Serious21Failure by director or officer to disclose conflict of interest202 and 789206211 and 836207Very serious22Failure by director to abstain from being present at meeting or from voting203(1) and 790(1)207(1)212(1) and 837(1)208(1)Very serious23Failure to notify Superintendent on time of change of address of the head office or principal office237(3), 535(3) and 814(3)234(3)260(3), 544(2.2) and 868(3)242(3)Minor24Failure to file with Superintendent a power of attorney appointing new chief agent or containing new address of the chief agency forthwith after the changeN/AN/A587N/AMinor25Failure to prepare or maintain records238, 597(1) and 815235261, 647(1), 662 and 869243Very serious26Failure to notify Superintendent of place of records239(2), 597(3) and 816(2)236(2)262(2) and 870(2)244(2)Minor27Failure to take precautions to protect records244 (with modifications required, as the case may be, under section 598) and 821241267 (with modifications required, as the case may be, under section 649) and 875249Very serious28[Repealed, SOR/2020-68, s. 2]29[Repealed, SOR/2020-68, s. 2]30Failure to comply without delay with a direction of the Superintendent245(2) (with modifications required, as the case may be, under section 598) and 822(2)242(5)268(2) (with modifications required, as the case may be, under section 649) and 876(2)250(2)Very serious31Failure to send to Superintendent copy of annual financial statement, auditor’s report, actuary’s report, annual return or other material on time312 and 844296335, 667(2) and 891317Minor32Failure to notify Superintendent without delay of designation of member of firm of accountants who will conduct audit315(3) and (4), 585(4) and (5) and 847(3) and (4)299(3) and (4)338(3) and (4) (with modifications required, as the case may be, under subsection 547(1)), 634(3) and (4) and 894(3) and (4)320(3) and (4)Minor33Failure to fill auditor vacancy forthwith319(1) and 851(1)303(1)342(1) and 638(1)324(1)Minor34Failure to notify Superintendent of the appointment of an actuary forthwith after appointmentN/AN/A357 and 623(2)N/AMinor35Failure to notify Superintendent of the revocation of the appointment of the actuary forthwith after revocationN/AN/A360(2) and 625(2)N/AMinor36Failure to notify Superintendent of a vacancy in the office of the actuary forthwith after vacancyN/AN/A362 and 626(3)N/AMinor37Insuring of risk not within a class of insurance specified in orderN/AN/A443(1) and 573(2)N/AVery serious38[Repealed, SOR/2020-68, s. 5]39Failure to comply within the specified time with an order of the Superintendent to amend policies419(3)383(3)470(3) and 542.07(3)419(3)Very serious40Failure to comply with restriction on partnerships421(1), 553.1(1) and 924(1)385(1)472(1), 542.09 and 964(1)421(1)Serious41Entering into a transaction resulting in aggregate debt obligations and stated capital in excess of limitN/AN/A473(1), 476 and 542.1(1)N/AVery serious42Failure to obtain approval of Superintendent for giving up control of an entity468(11) and 930(11)390(10)495(12) and 971(10)453(10)Serious43Failure to cease to control entity or dispose of substantial investment acquired or increased by way of temporary investment within divestiture period471(1) and (2) and 933(1)393(1) and (2)498(1) and (2), 557(1) and (2) and 974(1)456(1) and (2)Serious44Failure to cease to control entity or dispose of substantial investment acquired by way of loan default within divestiture period472(2) and (3) and 934(2)394(2) and (3)499(2) and (3) and 558(2) and (3) and 975(2)457(2) and (3)Serious45Failure to cease to control entity or dispose of substantial investment acquired by way of realization within divestiture period473(2) and (3) and 935(2)395(2) and (3)500(2) and (3), 559(2) and (3) and 976(2)458(2) and (3)Serious46Failure to obtain approval of Superintendent for acquiring or disposing of assets in excess of 10% of total assets482(1) and 944(1)406(1)512(1), 569(1) and 987(1)470(1)Serious47Holding of consumer and commercial loans in excess of limitN/A398 and 399503, 504, 505, 562, 616 and 617461 and 462Very serious48Holding of interest in real property in excess of limit476 and 938401506, 563, 618 and 981464Very serious49Holding of equity in excess of limits477 and 939402507, 565, 619 and 982465Very serious50Holding of interest in real property and equity in excess of aggregate limit478 and 940N/A508, 566, 620 and 983466Very serious51Failure to comply with a divestment order480 and 942404510, 567 and 985468Very serious52Failure to comply with an order to increase capital, provide additional liquidity, increase assets or maintain or deposit assets in Canada485(4), 617 and 949(4)409(4)515(4), 608(5), 609(3) and 992(4)473(4)Very serious53Entering into a prohibited related party transaction489(1)413(1)521(1) and 621477(1)Very serious54Failure to obtain approval of Superintendent to be reinsured by a related partyN/AN/A523(2) and 597(1)N/AVery serious55Entering into a related party transaction in excess of limits495.2, 495.3, 496(2) and 497420(2) and 421528.2, 528.3, 529(2) and 530483.2, 483.3, 484(2) and 485Very serious56Failure to obtain full disclosure from a party believed to be a related party504(1)428(1)537(1)492(1)Very serious57Failure to notify Superintendent of a prohibited or non-approved related party transaction505429538493Very serious58Carrying on activities prohibited to a foreign bank or entity associated with a foreign bank510N/AN/AN/AVery serious59Failure to provide Superintendent with financial statements or other information on time522.27N/AN/AN/AMinor60Failure to submit copy of power of attorney to Superintendent without delay536(2) and (3)N/AN/AN/AMinor61Failure to notify Superintendent of the appointment of the auditor without delay585(1)N/A633(2)N/AMinor62Failure to keep records at chief agencyN/AN/A647(3)N/ASerious63Failure to provide Superintendent with required information at the time or in the form specified600, 628 and 950431664 and 993495Minor, if the violation relates to information required as part of periodic reports Serious, in any other case64Failure to comply with an order for the production of information605, 635 and 954N/A671 and 997502Very serious65Failure to provide information required by Superintendent in relation to an examination613(2), 643(2) and 957(2)437(2)674(3) and 1000(2)505(2)Serious66Failure to comply with prudential agreement614.1, 644.1 and 959438.1675.1 and 1002506.1Very serious67Failure to comply with direction of compliance615(1) and (3), 645(1) and (3) and 960(1) and (3)439(1) and (3)676(1) and (3) and 1003(1) and (3)507(1) and (3)Very serious68Failure to provide Superintendent with information relating to appointment of directors or officers on time617.1(3), 647(3) and 963(3)441.1(3)678.1(3), 678.3(3) and 1006(3)509.1(3)Very serious69Failure to provide Superintendent with information on directors and auditors on time632(1) and 951(1)432(1)549(1), 661(2), 668(1) and 994(1)499(1)Minor70Failure to provide Superintendent with changes to information on directors and auditors forthwith after the changes632(2) and 951(2)432(2)549(2), 661(3), 668(2) and 994(2)499(2)Minor71Failure to send to Superintendent copy of by-laws on time633 and 952632(2) and 951(2)548(3), 661(1)(a), 669 and 995500Minor72Failure to comply with terms, conditions or undertakings relating to approval of Superintendent973.02(2)459.2(3)1016.2(2)527.4(2)Very serious

SOR/2020-68, s. 1SOR/2020-68, s. 2SOR/2020-68, s. 3SOR/2020-68, s. 4SOR/2020-68, s. 5SOR/2020-68, s. 6