Administrative Monetary Penalties (OSFI) Regulations

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Administrative Monetary Penalties (OSFI) Regulations

SOR/2005-267OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT
Registration 2005-08-31
Administrative Monetary Penalties (OSFI) Regulations
P.C. 2005-1511 2005-08-31Her 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