Bank Act

Marginal note:Designation order

• 508 (1) Subject to subsection (2), the Minister may, by order, designate a foreign bank to be a designated foreign bank for the purposes of this Part if

  • (a) the foreign bank is a bank according to the laws of the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business;

  • (b) the foreign bank engages, directly or indirectly, in the business of providing financial services and employs, to identify or describe its business, a name that includes the word “bank”, “banque”, “banking” or “bancaire”, either alone or in combination with other words, or any word or words in any language other than English or French corresponding generally thereto;

  • (c) the foreign bank, in the opinion of the Minister, after consultation with the Superintendent, is regulated as or like a bank, according to the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business; or

  • (d) the foreign bank is not a foreign bank described in any of paragraphs (a) to (c) and one of the following conditions is met:

    • (i) subject to the regulations, the following ratio, expressed as a percentage, is equal to or greater than the prescribed material percentage: the value of the total assets of foreign banks described in any of paragraphs (a) to (c) that are associated with the foreign bank to the value of the total assets of the foreign bank and entities associated with the foreign bank, or

    • (ii) subject to the regulations, the following ratio, expressed as a percentage, is equal to or greater than the prescribed material percentage: the value of the total revenues of foreign banks described in any of paragraphs (a) to (c) that are associated with the foreign bank to the value of the total revenues of the foreign bank and entities associated with the foreign bank.

• Marginal note:Restriction

  (2) The Minister may only make an order under subsection (1) in respect of a foreign bank described in any of paragraphs (1)(a) to (c) if

  • (a) the foreign bank or an entity controlled by the foreign bank is or will be

    • (i) engaging in or carrying on business in Canada, other than holding, managing or otherwise dealing with real property,

    • (ii) maintaining a branch in Canada, other than an office referred to in section 522,

    • (iii) establishing, maintaining or acquiring for use in Canada an automated banking machine, a remote service unit or a similar automated service, or, in Canada, accepting data from such a machine, unit or service other than in circumstances described in section 511 or 512,

    • (iv) acquiring or holding control of, or a substantial investment in, a Canadian entity, or

    • (v) acquiring or holding any share or ownership interest in a Canadian entity and

      • (A) an entity associated with the foreign bank holds control of, or a substantial investment in, the Canadian entity, or

      • (B) an entity associated with the foreign bank and one or more other entities associated with the foreign bank would, if they were one person, hold control of, or a substantial investment in, the Canadian entity; or

  • (b) the foreign bank is controlled by an individual and

    • (i) one of the following conditions is met:

      • (A) subject to the regulations, the following ratio, expressed as a percentage, is equal to or greater than the prescribed material percentage: the value of the total assets of the foreign bank and other foreign banks described in any of paragraphs (1)(a) to (c) that are associated with the foreign bank to the value of the total assets of the foreign bank and entities associated with the foreign bank, or

      • (B) subject to the regulations, the following ratio, expressed as a percentage, is equal to or greater than the prescribed material percentage: the value of the total revenues of the foreign bank and other foreign banks described in any of paragraphs (1)(a) to (c) that are associated with the foreign bank to the value of the total revenues of the foreign bank and entities associated with the foreign bank, and

    • (ii) an entity associated with the foreign bank is or will be

      • (A) engaging in or carrying on business in Canada, other than holding, managing or otherwise dealing with real property,

      • (B) maintaining a branch in Canada, other than an office referred to in section 522,

      • (C) establishing, maintaining or acquiring for use in Canada an automated banking machine, a remote service unit or a similar automated service, or, in Canada, accepting data from such a machine, unit or service other than in circumstances described in section 511 or 512, or

      • (D) acquiring or holding control of, or a substantial investment in, a Canadian entity.

• Marginal note:Subsections 507(4) to (7) do not apply

  (2.1) Subsections 507(4) to (7) do not apply with respect to the making of any determination relating to control or a substantial investment for the purposes of paragraph (2)(a).

• Marginal note:Deeming

  (3) A foreign bank that was designated under subsection 521(1.06) as that subsection read immediately before the coming into force of this subsection and whose designation has not been revoked is deemed to be the subject of a designation order.