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Financial Consumer Protection Framework Regulations (SOR/2021-181)

Regulations are current to 2022-08-08 and last amended on 2022-06-30. Previous Versions

PART 2Disclosure and Transparency for Informed Decisions (continued)

Key Product Information (continued)

Credit Agreements (continued)

Marginal note:Amendments

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, an amendment to the terms or conditions of a credit agreement for a credit card that changes any information that was disclosed in accordance with subsection 627.89(1) of the Act in the initial disclosure statement is a prescribed amendment. This section does not, however, apply in respect of an amendment referred to in subsection 68(1) of these Regulations or a change in a variable interest rate referred to in paragraph 65(1)(b) of these Regulations as a result of a change in the public index referred to in that paragraph.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, any information that is required to update the initial disclosure statement as a result of an amendment referred to in subsection (1) is prescribed information.

  • Marginal note:Time of disclosure

    (3) Despite subsection 37(3), the prescribed amendment and any prescribed information must be disclosed in writing 30 days or more before the amendment takes effect.

Marginal note:Other amendments

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, the following amendments are prescribed amendments in relation to a credit card:

    • (a) a change in the credit limit;

    • (b) an extension to the grace period;

    • (c) a decrease in non-interest charges or default charges referred to in paragraphs 54(1)(c) or (g) of these Regulations;

    • (d) a change concerning information about any optional service in relation to the credit agreement that is referred to in paragraph 54(1)(i) of these Regulations; and

    • (e) a decrease in the fixed interest rate or a decrease in the fixed percentage interest rate referred to in paragraph 65(1)(a) or (b) of these Regulations.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, any information that is required to update the initial disclosure statement as a result of a prescribed amendment is prescribed information.

  • Marginal note:Time of disclosure

    (3) Despite subsection 37(3), a prescribed amendment and the prescribed information must be disclosed not later than the day on which the first subsequent periodic disclosure statement is provided after the amendment is made.

Marginal note:Waiver offer

 An institution that, under a credit agreement for a credit card, offers to waive a payment must, in a prominent manner, disclose in the offer whether interest will continue to accrue during any period covered by the offer if it is accepted.

Marginal note:Advertisements

  •  (1) For the purposes of section 627.91 of the Act, a representation of the annual interest rate, amount of any payment or amount of any non-interest charge in relation to a credit card is a prescribed representation.

  • Marginal note:Information

    (2) For the purposes of section 627.91 of the Act, the annual interest rate on the date of the advertisement and any initial or periodic non-interest charges are prescribed information.

  • Marginal note:Presentation of information

    (3) For the purposes of section 627.63 of the Act, the prescribed information must be presented at least as prominently as the prescribed representation and in the same manner, whether visually or aurally, or both.

Prepaid Payment Products

Marginal note:Agreement by telephone

 For the purposes of subparagraph 627.55(2)(a)(i) of the Act, the information referred to in paragraphs 627.92(1)(a) and (d) to (h) of the Act is prescribed information in relation to the issuance of a prepaid payment product.

Marginal note:Information box

  •  (1) For the purposes of subsection 627.57(1) of the Act, the information referred to in paragraph 627.92(1)(f) of the Act is prescribed information in relation to the issuance of a prepaid payment product.

  • Marginal note:Exterior packaging

    (2) If the prepaid payment product has exterior packaging, the institution must ensure that the information box referred to in subsection 627.57(1) of the Act appears prominently on the exterior packaging.

Marginal note:Issuance

 For the purposes of paragraph 627.92(1)(j) of the Act, the following information is prescribed information:

  • (a) the prepaid payment product’s terms and conditions, including the person’s rights and responsibilities with respect to a lost or stolen prepaid payment product;

  • (b) a description of how the person can verify the balance of the funds loaded on the prepaid payment product; and

  • (c) a description of how the person may, in certain circumstances, use funds loaded on the prepaid payment product towards partial payment of a purchase.

Mortgage Insurance

Coverage and Business Arrangements

Marginal note:Coverage and calculation of charges

 For the purposes of subsection 627.992(1) of the Act, the following information is prescribed information:

  • (a) the coverage provided by the insurance, including which party is protected by the insurance and which party pays for it; and

  • (b) the manner in which the amount that the institution is being charged by the insurer for the insurance is calculated.

Marginal note:Business arrangements

  •  (1) If an institution enters into an arrangement with an insurer to receive payments or benefits from the insurer and the insurer also provides the institution with insurance, then, for the purposes of subsection 627.992(1) of the Act, information that relates to all of the institution’s business arrangements with the insurer in respect of that insurance is prescribed information.

  • Marginal note:Mandatory contents

    (2) The prescribed information must include

    • (a) the nature of the business arrangements;

    • (b) any payments or benefits referred to in any of sections 76, 77, 80, 81, 84 or 85 that are received directly or indirectly by the institution from the insurer or any of its affiliates; and

    • (c) any payments or benefits referred to in any of sections 78, 82 or 86 that are expected to be received directly or indirectly by the institution from the insurer or any of its affiliates.

  • Marginal note:Manner of disclosure

    (3) The prescribed information must be disclosed in a single document.

  • Marginal note:Exception

    (4) Subsection (1) does not apply in respect of a business arrangement entered into by the institution to provide the insurer with products and services that are offered by the institution to its customers and to the public in the normal course of business.

Payments and Benefits

Marginal note:Receipt on per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(1) of the Act, that fact is prescribed information.

Marginal note:Amount by activity — other basis

 If, on the first day of a fiscal quarter, an institution has received, in any of the first four fiscal quarters of the preceding five fiscal quarters, payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(1) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount, expressed in dollars, of the payments or benefits received from the insurer in those first four fiscal quarters is prescribed information.

Marginal note:Expected amount by activity — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(1) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount, expressed in dollars, of the payments or benefits that the institution expects to receive from that insurer in that fiscal quarter and the three following fiscal quarters is prescribed information.

Marginal note:Manner of disclosure

 Information that must be disclosed under subsection 627.992(2) of the Act but is not prescribed information must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Amount by activity — per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the amount of each of the payments or benefits, expressed in dollars, is prescribed information.

Marginal note:Amount charged — other basis

 If, on the first day of a fiscal quarter, an institution has, in any of the first four fiscal quarters of the preceding five fiscal quarters, received payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act, the amount, expressed in dollars, that is determined by multiplying the amount that the institution charges the person for insurance by each of the percentages of the total amount paid to the insurer by the institution in respect of policies and guarantees in those first four fiscal quarters is prescribed information.

Marginal note:Expected amount charged — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations, but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act, the amount, expressed in dollars, that is determined by multiplying the amount that the institution charges the person for insurance by each of the percentages of the total amount expected to be paid to the insurer by the institution in respect of the policies and guarantees in that fiscal quarter and the three following fiscal quarters is prescribed information.

Marginal note:Manner of disclosure

 The prescribed information referred to in sections 80 to 82 must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Percentage of amount charged — per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(2) of the Act, the amount of each of those payments or benefits expressed as a percentage of the amount that the institution charges the person for insurance is prescribed information.

Marginal note:Amounts paid by insurer — other basis

 If, on the first day of a fiscal quarter, an institution has received, in any of the first four fiscal quarters of the preceding five fiscal quarters, payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the amount of each of the payments or benefits, expressed both in dollars and as a percentage of the total amount paid to the insurer by the institution in respect of policies and guarantees in those first four fiscal quarters, is prescribed information.

Marginal note:Percentage of expected amount — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations, but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount of the payments or benefits that the institution expects to receive from that insurer in that fiscal quarter and the three following fiscal quarters, expressed as a percentage of the total amount expected to be paid to the insurer by the institution in respect of policies and guarantees in that fiscal quarter and the three following fiscal quarters, is prescribed information.

Marginal note:Manner of disclosure

 The prescribed information referred to in sections 84 to 86 must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Amounts not included

 For greater certainty, the payments referred to in sections 76 to 78, 80 to 82 and 84 to 86 do not include any payment received by the institution in respect of a claim made by the institution under the insurance as a result of a default on the residential mortgage that is the subject of the insurance.

Public Notices

Notice of Branch Closure

Marginal note:Notice given by mail

 If a notice referred to in section 627.993 of the Act is sent by mail, it is deemed to have been given on the fifth business day after the postmark date.

Marginal note:Notice to Commissioner

 For the purposes of subsection 627.993(3) of the Act, the following information is prescribed information in relation to a notice referred to in paragraph 627.993(1)(a) of the Act:

  • (a) the location of the branch;

  • (b) the date proposed for the closure of the branch or the cessation of the activity;

  • (c) alternative sites where, after that date, customers of the branch may obtain services similar to the financial services that are provided at the branch or a telephone number that customers may call to be informed of those sites;

  • (d) the measures, if any, that the member bank is taking to maintain any financial services that are available in the area that is served by the branch, to the extent that information is available; and

  • (e) how the member bank may be contacted in respect of the proposed closure of the branch or cessation of the activity.

Marginal note:Other notices

 For the purposes of subsection 627.993(3) of the Act, the following information is prescribed information in relation to a notice referred to in paragraph 627.993(1)(b) or (c) of the Act:

  • (a) the information referred to in paragraphs 90(a) to (c) and (e) of these Regulations;

  • (b) how the Commissioner may be contacted in respect of the proposed closure of the branch or cessation of the activity;

  • (c) a statement that the Commissioner may require the member bank to convene and hold a meeting between representatives of the member bank, representatives of the Agency and interested parties in the vicinity of the branch, in order to exchange views about the proposed closure of the branch or cessation of the activity, if

    • (i) the member bank has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch or the cessation of the activity,

    • (ii) an individual or a community representative from the area affected by the closure of the branch or the cessation of the activity submits to the Commissioner a written request for the meeting, and

    • (iii) the request is not frivolous or vexatious; and

  • (d) the address of the branch to which the member bank will transfer the customers’ accounts.

 
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