Bank Act

Marginal note:Prohibited activities — non-bank affiliates

• 519 (1) Despite subsections 510(4) and (5), a non-bank affiliate of a foreign bank shall not, in Canada,

  • (a) engage in the business of accepting deposit liabilities;

  • (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank, other than for

    • (i) an authorized foreign bank,

    • (ii) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society, or

    • (iii) an entity referred to in any of paragraphs 468(1)(a), (c), (d) and (h) or a trust or loan corporation referred to in paragraph 468(1)(g); or

  • (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a non-bank affiliate that is

  • (a) a trust or loan corporation incorporated by or under an Act of Parliament or of the legislature of a province;

  • (b) a Canadian entity referred to in paragraph 468(1)(d) or (h); or

  • (c) a prescribed entity.