Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Loi

Act means the Bank Act. (Loi) (Loi)

exemption order

arrêté d’exemption

exemption order has the same meaning as in subsection 507(1) of the Act. (arrêté d’exemption) (arrêté d’exemption)

Application

Marginal note:Application

2 These Regulations do not apply to an entity that is

• (a) a bank or a bank holding company;

• (b) a subsidiary of a bank or of a bank holding company;

• (c) a Canadian entity that

  • (i) is a non-bank affiliate of a foreign bank, as that term is defined in subsection 507(1) of the Act, and

  • (ii) is controlled by a foreign bank that is not the subject of an exemption order or by an entity associated with a foreign bank that is not the subject of an exemption order;

• (d) an authorized foreign bank;

• (e) a foreign bank in respect of which an exemption order has not been made; or

• (f) an entity that is associated, within the meaning of section 507 of the Act, with a foreign bank that is not the subject of an exemption order.

Entities Affiliated with a Bank

Marginal note:Permitted use

• 3 (1) Subject to section 7, no entity affiliated with a bank commits an offence under subsection 983(2) of the Act by reason only that the entity uses the name of the bank in the entity’s corporate name or in a name under which the entity carries on business, so long as the entity does not use the word bank, banker or banking in its corporate name or in a name under which it carries on business.

• Marginal note:Permitted use

  (2) Subject to section 7, no entity affiliated with a bank commits an offence under subsection 983(2) of the Act by reason only that the entity uses any identifying mark, logogram or insignia of the bank in carrying on the entity’s business, so long as the entity does not use any identifying mark, logogram or insignia that includes the word bank, banker or banking.

Marginal note:Use in describing relationship with affiliate

4 Subject to section 7, no entity affiliated with a bank commits an offence under subsection 983(2) of the Act by reason only that the entity uses the name of the bank in a description of the entity’s corporate relationship to the bank.

Entities Affiliated with a Bank Holding Company

Marginal note:Permitted use

• 5 (1) Subject to section 7, no entity affiliated with a bank holding company commits an offence under subsection 983(3) of the Act by reason only that the entity uses the name of the bank holding company in the entity’s corporate name or in a name under which the entity carries on business, so long as the entity does not use the word bank, banker or banking in its corporate name or in a name under which it carries on business.

• Marginal note:Permitted use

  (2) Subject to section 7, no entity affiliated with a bank holding company commits an offence under subsection 983(3) of the Act by reason only that the entity uses any identifying mark, logogram or insignia of the bank holding company in carrying on the entity’s business, so long as the entity does not use any identifying mark, logogram or insignia that includes the word bank, banker or banking.

Marginal note:Use in describing relationship with affiliate

6 Subject to section 7, no entity affiliated with a bank holding company commits an offence under subsection 983(3) of the Act by reason only that the entity uses the name of the bank holding company in a description of the entity’s corporate relationship to the bank holding company.

Conditions

Marginal note:Conditions

• 7 (1) Sections 3 and 4 apply to an entity that is affiliated with a bank, and sections 5 and 6 apply to an entity that is affiliated with a bank holding company, only if the entity complies with the following conditions:

  • (a) the entity does not, in Canada, engage in the business of accepting deposit liabilities;

  • (b) the entity does not, in Canada, represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit; and

  • (c) if the entity carries on as part of its business the provision of financial services and borrows money in Canada from the public through the issue of instruments in denominations of less than $150,000 or by borrowing from a person in an amount of less than $150,000, the entity discloses that

    • (i) it is not a member institution of the Canada Deposit Insurance Corporation,

    • (ii) the liability incurred by it through the borrowing is not a deposit, and

    • (iii) it is not regulated as a financial institution in Canada.

• Marginal note:Means of disclosure

  (2) The disclosure referred to in paragraph (1)(c) must be in a prospectus, information circular or other offering document related to the borrowing or in a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender.

• Marginal note:Application

  (3) The conditions set out in subsection (1) do not apply to an entity that is

  • (a) a trust or loan corporation incorporated under a federal or provincial law;

  • (b) an association to which the Cooperative Credit Associations Act applies; or

  • (c) a cooperative credit society incorporated or formed, and regulated, by or under a provincial law.

• Marginal note:Application

  (4) The conditions set out in paragraph (1)(c) do not apply to an entity that is

  • (a) an insurance company or fraternal benefit society incorporated or formed by or under a federal or provincial law;

  • (b) an insurance holding company;

  • (c) an entity that is controlled by an insurance holding company or that an insurance holding company has a substantial investment in; or

  • (d) an entity that is incorporated or formed by or under a federal or provincial law and that is primarily engaged in dealing in securities, including portfolio management and investment counselling.

• Marginal note:Subsequent use by bank or bank holding company

  (5) The conditions set out in subsection (1) do not apply in respect of the use by an entity of a name that, before being used by the bank or bank holding company, as the case may be, was already used by the entity, or by an entity affiliated with it, in the corporate name of the entity or affiliate or in a name under which the entity or affiliate carries on business.

• Marginal note:Subsequent use by bank or bank holding company

  (6) The conditions set out in subsection (1) do not apply in respect of the use by an entity of an identifying mark, logogram or insignia that, before being used by the bank or bank holding company, as the case may be, was already used by the entity, or by an entity affiliated with it, in carrying on the business of the entity or affiliate.

Coming into Force

Marginal note:Coming into force

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