Canada Deposit Insurance Corporation Differential Premiums By-law (SOR/99-120)

Interpretation

• 1 (1) The definitions in this subsection apply in this By-law.

  Act

  Act means the Canada Deposit Insurance Corporation Act. (Loi)

  CDIC standards

  CDIC standards[Repealed, SOR/2005-116, s. 1]

  Data Requirements By-law

  Data Requirements By-law means the Canada Deposit Insurance Corporation Data and System Requirements By-law. (Règlement administratif sur les exigences en matière de données)

  domestic systemically important bank

  domestic systemically important bank[Repealed, SOR/2019-43, s. 1]

  examiner

  examiner means

  • (a) in respect of a federal member institution, the Superintendent; and

  • (b) in respect of a provincial member institution

    • (i) the Corporation or a person designated under paragraph 28(a) of the Act, or

    • (ii) the government of a province or the agent of the government of a province with whom the Corporation has entered into an agreement under section 38 of the Act. (inspecteur)

  filing year

  filing year means the calendar year in which a member institution is required to submit the documents referred to in section 15 for the purpose of determining the institution’s annual premium for the premium year beginning in that calendar year. (année de déclaration)

  Guidelines for Banks

  Guidelines for Banks means the Guidelines for Banks issued by the Superintendent under the Bank Act. (Lignes directrices à l’intention des banques)

  guidelines for member institutions

  guidelines for member institutions means the Guidelines for Banks or the Guidelines for Trust and Loan Companies, as applicable. (lignes directrices à l’intention des institutions membres)

  Guidelines for Trust and Loan Companies

  Guidelines for Trust and Loan Companies means the Guidelines for Trust and Loan Companies issued by the Superintendent under the Trust and Loan Companies Act. (Lignes directrices à l’intention des sociétés de fiducie et de prêt)

  new member institution

  new member institution[Repealed, SOR/2002-126, s. 1]

  regulator

  regulator means

  • (a) in respect of a federal member institution, the Superintendent; and

  • (b) in respect of a provincial member institution, the authority whose mandate in respect of the institution under the provincial law governing the institution is comparable to that of the Superintendent in respect of federal member institutions. (organisme de réglementation)

  Reporting Form

  Reporting Form means the reporting form set out in Part 2 of Schedule 2. (formulaire de déclaration)

  Reporting Manual

  Reporting Manual means the Manual of Reporting Forms and Instructions published for deposit-taking institutions by the Superintendent, as amended from time to time. (Recueil des formulaires et des instructions)

  subsidiary

  subsidiary has the same meaning as in section 2 of the Bank Act. (filiale)

• (2) Unless otherwise provided in this By-law, terms and expressions used in this By-law have the same meaning as in the guidelines for member institutions or in the Reporting Manual.

• (3) For the purpose of determining the annual premium of a member institution for a premium year, a reference in this By-law to the guidelines for member institutions or the Reporting Manual is a reference to those guidelines or that Reporting Manual as amended up to and including October 31 preceding that premium year.

• (4) For the purposes of sections 15 and 16 and Schedule 2, a reference, in respect of an amalgamating member institution, to the fiscal year ending in the year preceding the filing year means a reference to the period covered by its audited financial statements prepared as of the day preceding the date of its amalgamation where

  • (a) that institution does not have a fiscal year ending in the year preceding the filing year; and

  • (b) that amalgamation occurred after April 30 of the year preceding the filing year and on or before April 30 of the filing year.

• (5) A reference in Schedule 2 or Schedule 3 to a multiple or ratio authorized or required in respect of a member institution by its regulator means a multiple or ratio authorized or required by that regulator in the course of the regulator’s duties.

• (6) [Repealed, SOR/2006-47, s. 1]

Application

• 2 (1) Section 3 applies, for the purpose of subsection 23(1) of the Act, in respect of the calculation of the premium payable by a member institution referred to in that subsection.

• (2) Sections 4 to 30 apply in respect of the calculation of the annual premium payable by a member institution for a full premium year.

Annual Premium

3 For the purpose of paragraph 23(1)(a) of the Act, the annual premium for a member institution referred to in subsection 23(1) is equal to the greater of

• (a) $5,000, and

• (b) the result determined in accordance with the formula

  A × B × C

  where

  A

  is one third of one per cent, or any smaller proportion of one per cent that is fixed by the Governor in Council under subparagraph 23(1)(b)(ii) of the Act,

  B

  is an amount equal to the sum of the deposits referred to in paragraph 23(1)(b)(ii) of the Act, and

  C

  is the percentage set out in column 3 of Schedule 1 for the applicable premium year for premium category 1.

• 4 (1) For the purpose of paragraph 21(1)(a) of the Act, the annual premium for each member institution is equal to the greater of

  • (a) $5,000, and

  • (b) subject to subsections (1.1) and (2), the result determined in accordance with the formula

    A × B × C

    where

    A

    is one third of one per cent, or any smaller proportion of one per cent that is fixed by the Governor in Council under paragraph 21(4)(b) of the Act,

    B

    is an amount equal to the sum of the deposits referred to in paragraph 21(4)(b) of the Act, and

    C

    is the percentage set out for the applicable premium year in column 3 of an item of Schedule 1 that corresponds to the premium category of the member institution set out in column 1 of that item.

• (1.1) If a member institution is reclassified under subsection 5(2), the following formula shall be used to determine the result for the purposes of paragraph (1)(b):

  (D × (E ÷ H)) + (F × (G ÷ H))

  where

  D

  is the amount that would be the result under paragraph (1)(b) if C in that paragraph represented the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of the item, in which the member institution was classified before its reclassification;

  E

  is the number of days during the period beginning on May 1 of the filing year and ending on the day before the day on which the member institution has been a member institution for 18 months;

  H

  is the number of days during the period beginning on May 1 of the filing year and ending on April 30 of the following year;

  F

  is the amount that would be the result under paragraph (1)(b) if C in that paragraph were the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of that item, in which the member institution is reclassified; and

  G

  is the number of days during the period beginning on the day on which the member institution has been a member institution for 18 months and ending on April 30 of the year following the filing year referred to in E.

• (2) If a member institution is reclassified under section 6, the following formula shall be used to determine the result for the purposes of paragraph (1)(b):

  (D × (E ÷ H)) + (F × (G ÷ H))

  where

  D

  is the amount that would be the result under paragraph (1)(b) if C in that paragraph represented the percentage set out in column 3 of item 4 of Schedule 1;

  E

  is the number of days during the period beginning on May 1 of the filing year and ending on the day on which the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution;

  H

  is the number of days during the period beginning on May 1 of the filing year and ending on April 30 of the following year;

  F

  is the amount that would be the result under paragraph (1)(b) if C in that paragraph were the percentage set out in column 3 of an item of Schedule 1 for the premium category, set out in column 1 of that item, in which the member institution is reclassified; and

  G

  is the number of days during the period beginning on the day after the day on which the Corporation receives the declaration referred to in paragraph 7(1)(b) or the documents required by subsection 15(1) or section 16 from the member institution and ending on April 30 of the year following the filing year referred to in E.

4.1 For each premium year that begins after April 30, 2021, the reference to “A × B × C” in paragraph 4(1)(b) shall, in respect of a member institution that is required to develop and maintain a resolution plan under section 39.01 of the Act, be read as

• (a) “(A × B × C) + (B × 0.0125%)” if the resolution plan was partially non-compliant, within the meaning of paragraph 11(4)(b) of the Canada Deposit Insurance Corporation Resolution Planning By-law, as of April 30 of the preceding premium year;

• (b) “(A × B × C) + (B × 0.025%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of the preceding premium year;

• (c) “(A × B × C) + (B × 0.05%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of each of the two preceding premium years; or

• (d) “(A × B × C) + (B × 0.1%)” if the resolution plan was materially non-compliant, within the meaning of paragraph 11(4)(c) of that By-law, as of April 30 of each of the three preceding premium years.

Determination of Premium Category

Classification

• 5 (1) The Corporation shall, before July 15 of each premium year, classify every member institution in accordance with sections 7, 8, 8.1 and 12.

• (2) If an institution has been a member institution for a period of between 6 and 18 months on the day on which it is classified under subsection (1), the Corporation may review its classification and reclassify it in accordance with subsection 8.1(4) once the institution has been a member institution for at least 18 months.