Administrative Monetary Penalties (OSFI) Regulations
SOR/2005-267
OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT
Registration 2005-08-31
Administrative Monetary Penalties (OSFI) Regulations
P.C. 2005-1511 2005-08-31
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsections 23.1(4)Footnote a and 25(1)Footnote b and section 38Footnote c of the Office of the Superintendent of Financial Institutions ActFootnote d, hereby makes the annexed Administrative Monetary Penalties (OSFI) Regulations.
Return to footnote aS.C. 1999, c. 28, s. 131
Return to footnote bS.C. 2001, c. 9, s. 476
Return to footnote cS.C. 1997, c. 15, s. 339; S.C. 2001, c. 9, s. 477
Return to footnote dR.S., c. 18 (3rd Supp.), Part I
Interpretation
1 In these Regulations, Act means the Office of the Superintendent of Financial Institutions Act.
2 The 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
4 Each 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
7 These Regulations come into force on the day on which they are registered.
SCHEDULE(Sections 2 to 5)
| Item | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |
|---|---|---|---|---|---|---|
| Short-form Description of Violation | Provisions of the Bank Act | Provisions of the Cooperative Credit Associations Act | Provisions of the Insurance Companies Act | Provisions of the Trust and Loan Companies Act | Classification of Violation | |
| 1 | Failure to obtain approval of Superintendent for carrying on business | 48(1) and 534(2) | 56(1) | 52(1) | 52(1) | Very serious |
| 2 | Failure to obtain approval of Superintendent for the insuring in Canada of risks | N/A | N/A | 573(1) | N/A | Very serious |
| 3 | Failure to comply with conditions or limitations on an order approving the commencement and carrying on of business | 53, 54 and 534(5) and (6) | 61 and 62 | 58(2), 59 and 657(3) and (4) | 57(4) and 58 | Very serious |
| 4 | Failure to comply with conditions or limitations on an order approving the insuring in Canada of risks | N/A | N/A | 581(2) and 586(1) | N/A | Very serious |
| 5 | Failure to obtain approval of Superintendent for issuing shares paid for in property | 65(1) and 709(1) | 74(1) | 69(1) and 748(1) | 68(1) | Serious |
| 6 | Holding of own shares | 70 and 714 | 78 | 74 and 753 | 73 | Serious |
| 7 | Failure to notify Superintendent of declaration of dividend on time | 79(2) and 722(2) | 86(2) | 83(2) and 761(2) | 82(2) | Minor |
| 8 | Failure to obtain approval of Superintendent for declaration and payment of dividend in excess of net income | 79(5) | 86(5) | 83(5) | 82(5) | Very serious |
| 9 | Failure to obtain approval of Superintendent for issuing subordinated debt paid for in property | 80(1) and 723(1) | 87(1) | 84(1) and 762(1) | 83(1) | Serious |
| 10 | Failure to file with Superintendent proxy circular, notice of meeting, form of proxy or other documents on time | 156.05(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) | Minor |
| 11 | Failure to establish audit committee | 157(2)(a) and 747(2)(a) | 167(2)(a) | 165(2)(a) and 794(2)(a) | 161(2)(a) | Very serious |
| 12 | Failure to establish conduct review committee | 157(2)(b) | 167(2)(b) | 165(2)(b) and 660(1)(c) | 161(2)(b) | Very serious |
| 13 | Failure to establish procedures to resolve conflicts of interest | 157(2)(c) and 747(2)(b) | 167(2)(c) | 165(2)(c) and 794(2)(b) | 161(2)(c) | Very serious |
| 14 | Failure to designate committee to monitor procedures to resolve conflicts of interest | 157(2)(d) and 747(2)(c) | 167(2)(d) | 165(2)(d) and 794(2)(c) | 161(2)(d) | Very serious |
| 15 | Failure to establish investment or lending policies, standards or procedures | 157(2)(g), 465, 581, 747(2)(d) and 927 | 167(2)(e) and 387 | 165(2)(h), 492, 551, 615(1), 794(2)(d) and 968 | 161(2)(g) and 450 | Very serious |
| 16 | Failure to comply with board composition requirements | 159, 160, 163(1), 164, 749, 750 and 752 | 169, 170 and 171 | 167, 168(1) and (2), 171(1), 172, 796, 797 and 799 | 163, 164, 167(1) and 168 | Serious |
| 17 | Failure to comply with requirements in respect of self-dealing | 195(3) | 200(3) | 204(3) and 660(2) | 199(3) | Very serious |
| 18 | Failure to report to Superintendent on mandate or responsibilities of conduct review committee or on procedures for complying with self-dealing regime | 195(4) | 200(4) | 204(4) and 660(3) | 199(4) | Minor |
| 19 | Failure to report to Superintendent on time on activities of conduct review committee | 195(6) | 200(6) | 204(6) and 660(5) | 199(6) | Minor |
| 20 | Failure to appoint chief executive officer, principal officer or chief agent | 196(1) and 536(1) | N/A | 205 and 579(3) | 200(1) | Serious |
| 21 | Failure by director or officer to disclose conflict of interest | 202 and 789 | 206 | 211 and 836 | 207 | Very serious |
| 22 | Failure by director to abstain from being present at meeting or from voting | 203(1) and 790(1) | 207(1) | 212(1) and 837(1) | 208(1) | Very serious |
| 23 | Failure to notify Superintendent on time of change of address of the head office or principal office | 237(3), 535(3) and 814(3) | 234(3) | 260(3), 544(2.2) and 868(3) | 242(3) | Minor |
| 24 | Failure to file with Superintendent a power of attorney appointing new chief agent or containing new address of the chief agency forthwith after the change | N/A | N/A | 587 | N/A | Minor |
| 25 | Failure to prepare or maintain records | 238, 597(1) and 815 | 235 | 261, 647(1), 662 and 869 | 243 | Very serious |
| 26 | Failure to notify Superintendent of place of records | 239(2), 597(3) and 816(2) | 236(2) | 262(2) and 870(2) | 244(2) | Minor |
| 27 | Failure to take precautions to protect records | 244 (with modifications required, as the case may be, under section 598) and 821 | 241 | 267 (with modifications required, as the case may be, under section 649) and 875 | 249 | Very serious |
| 28 | Failure to obtain approval of Superintendent for maintaining and processing of information outside Canada or to comply with terms and conditions regarding maintenance and processing of information outside Canada | 245(1) (with modifications required, as the case may be, under section 598) and 822(1) | 242(1) | 268(1) (with modifications required, as the case may be, under section 649) and 876(1) | 250(1) | Serious |
| 29 | Failure to inform Superintendent of maintenance of copies of records and further processing of information outside Canada or to provide information required by Superintendent | 245(4) (with modifications required, as the case may be, under section 598) and 822(3) | 242(3) | 268(4) (with modifications required, as the case may be, under section 649) and 876(3) | 250(4) | Minor |
| 30 | Failure to comply without delay with a direction to maintain copies of records or further process information in Canada | 245(6) (with modifications required, as the case may be, under section 598) and 822(5) | 242(5) | 268(6) (with modifications required, as the case may be, under section 649) and 876(5) | 250(6) | Very serious |
| 31 | Failure to send to Superintendent copy of annual financial statement, auditor’s report, actuary’s report, annual return or other material on time | 312, 601(2) and 844 | 296 | 335, 665(3), 667(2) and 891 | 317 | Minor |
| 32 | Failure to notify Superintendent without delay of designation of member of firm of accountants who will conduct audit | 315(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) | Minor |
| 33 | Failure to fill auditor vacancy forthwith | 319(1) and 851(1) | 303(1) | 342(1) and 638(1) | 324(1) | Minor |
| 34 | Failure to notify Superintendent of the appointment of an actuary forthwith after appointment | N/A | N/A | 357 and 623(2) | N/A | Minor |
| 35 | Failure to notify Superintendent of the revocation of the appointment of the actuary forthwith after revocation | N/A | N/A | 360(2) and 625(2) | N/A | Minor |
| 36 | Failure to notify Superintendent of a vacancy in the office of the actuary forthwith after vacancy | N/A | N/A | 362 and 626(3) | N/A | Minor |
| 37 | Insuring of risk not within a class of insurance specified in order | N/A | N/A | 443(1) and 573(2) | N/A | Very serious |
| 38 | Failure to obtain approval of Superintendent for engaging in transfers from segregated funds | N/A | N/A | 453 and 542.03(4) | N/A | Serious |
| 39 | Failure to comply within the specified time with an order of the Superintendent to amend policies | 419(3) | 383(3) | 470(3) and 542.07(3) | 419(3) | Very serious |
| 40 | Failure to comply with restriction on partnerships | 421(1), 553.1(1) and 924(1) | 385(1) | 472(1), 542.09 and 964(1) | 421(1) | Serious |
| 41 | Entering into a transaction resulting in aggregate debt obligations and stated capital in excess of limit | N/A | N/A | 473(1), 476 and 542.1(1) | N/A | Very serious |
| 42 | Failure to obtain approval of Superintendent for giving up control of an entity | 468(11) and 930(11) | 390(10) | 495(12) and 971(10) | 453(10) | Serious |
| 43 | Failure to cease to control entity or dispose of substantial investment acquired or increased by way of temporary investment within divestiture period | 471(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) | Serious |
| 44 | Failure to cease to control entity or dispose of substantial investment acquired by way of loan default within divestiture period | 472(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) | Serious |
| 45 | Failure to cease to control entity or dispose of substantial investment acquired by way of realization within divestiture period | 473(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) | Serious |
| 46 | Failure to obtain approval of Superintendent for acquiring or disposing of assets in excess of 10% of total assets | 482(1) and 944(1) | 406(1) | 512(1), 569(1) and 987(1) | 470(1) | Serious |
| 47 | Holding of consumer and commercial loans in excess of limit | N/A | 398 and 399 | 503, 504, 505, 562, 616 and 617 | 461 and 462 | Very serious |
| 48 | Holding of interest in real property in excess of limit | 476 and 938 | 401 | 506, 563, 618 and 981 | 464 | Very serious |
| 49 | Holding of equity in excess of limits | 477 and 939 | 402 | 507, 565, 619 and 982 | 465 | Very serious |
| 50 | Holding of interest in real property and equity in excess of aggregate limit | 478 and 940 | N/A | 508, 566, 620 and 983 | 466 | Very serious |
| 51 | Failure to comply with a divestment order | 480 and 942 | 404 | 510, 567 and 985 | 468 | Very serious |
| 52 | Failure to comply with an order to increase capital, provide additional liquidity, increase assets or maintain or deposit assets in Canada | 485(4), 617 and 949(4) | 409(4) | 515(4), 608(5), 609(3) and 992(4) | 473(4) | Very serious |
| 53 | Entering into a prohibited related party transaction | 489(1) | 413(1) | 521(1) and 621 | 477(1) | Very serious |
| 54 | Failure to obtain approval of Superintendent to be reinsured by a related party | N/A | N/A | 523(2) and 597(1) | N/A | Very serious |
| 55 | Entering into a related party transaction in excess of limits | 495.2, 495.3, 496(2) and 497 | 420(2) and 421 | 528.2, 528.3, 529(2) and 530 | 483.2, 483.3, 484(2) and 485 | Very serious |
| 56 | Failure to obtain full disclosure from a party believed to be a related party | 504(1) | 428(1) | 537(1) | 492(1) | Very serious |
| 57 | Failure to notify Superintendent of a prohibited or non-approved related party transaction | 505 | 429 | 538 | 493 | Very serious |
| 58 | Carrying on activities prohibited to a foreign bank or entity associated with a foreign bank | 510 | N/A | N/A | N/A | Very serious |
| 59 | Failure to provide Superintendent with financial statements or other information on time | 522.27 | N/A | N/A | N/A | Minor |
| 60 | Failure to submit copy of power of attorney to Superintendent without delay | 536(2) and (3) | N/A | N/A | N/A | Minor |
| 61 | Failure to notify Superintendent of the appointment of the auditor without delay | 585(1) | N/A | 633(2) | N/A | Minor |
| 62 | Failure to keep records at chief agency | N/A | N/A | 647(3) | N/A | Serious |
| 63 | Failure to provide Superintendent with required information at the time or in the form specified | 600, 628 and 950 | 431 | 664 and 993 | 495 | Minor, if the violation relates to information required as part of periodic reports Serious, in any other case |
| 64 | Failure to comply with an order for the production of information | 605, 635 and 954 | N/A | 671 and 997 | 502 | Very serious |
| 65 | Failure to provide information required by Superintendent in relation to an examination | 613(2), 643(2) and 957(2) | 437(2) | 674(3) and 1000(2) | 505(2) | Serious |
| 66 | Failure to comply with prudential agreement | 614.1, 644.1 and 959 | 438.1 | 675.1 and 1002 | 506.1 | Very serious |
| 67 | Failure to comply with direction of compliance | 615(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 serious |
| 68 | Failure to provide Superintendent with information relating to appointment of directors or officers on time | 617.1(3), 647(3) and 963(3) | 441.1(3) | 678.1(3), 678.3(3) and 1006(3) | 509.1(3) | Very serious |
| 69 | Failure to provide Superintendent with information on directors and auditors on time | 632(1) and 951(1) | 432(1) | 549(1), 661(2), 668(1) and 994(1) | 499(1) | Minor |
| 70 | Failure to provide Superintendent with changes to information on directors and auditors forthwith after the changes | 632(2) and 951(2) | 432(2) | 549(2), 661(3), 668(2) and 994(2) | 499(2) | Minor |
| 71 | Failure to send to Superintendent copy of by-laws on time | 633 and 952 | 632(2) and 951(2) | 548(3), 661(1)(a), 669 and 995 | 500 | Minor |
| 72 | Failure to comply with terms, conditions or undertakings relating to approval of Superintendent | 973(3) | 459.2(3) | 1016(3) | 527.2(3) | Very serious |
- Date modified: