Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2001-474/FullText.html

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Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations

SOR/2001-474FINANCIAL CONSUMER AGENCY OF CANADA ACT
Registration 2001-11-01
Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations
P.C. 2001-2018  2001-11-01Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 18(3) and section 32 of the Financial Consumer Agency of Canada ActFootnote a, hereby makes the annexed Financial Consumer Agency of Canada Assessment of Financial Institutions Regulations.
Return to footnote aS.C. 2001, c. 9Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act
Loi

Act means the Financial Consumer Agency of Canada Act. (Loi)

authorized foreign bank
banque étrangère autorisée

authorized foreign bank has the same meaning as in section 2 of the Bank Act. (banque étrangère autorisée)

bank
banque

bank has the same meaning as in section 2 of the Bank Act. (banque)

foreign life company
société d’assurance-vie étrangère

foreign life company has the same meaning as in section 571 of the Insurance Companies Act. (société d’assurance-vie étrangère)

insurance company
société d’assurances

insurance company means

(a) a company or foreign company to which the Insurance Companies Act applies; or
(b) Green Shield Canada. (société d’assurances)

life company
société d’assurance-vie

life company has the same meaning as in subsection 2(1) of the Insurance Companies Act. (société d’assurance-vie)

retail association
association de détail

retail association has the same meaning as in section 2 of the Cooperative Credit Associations Act. (association de détail)

trust and loan company
société de fiducie et de prêt

trust and loan company means a company to which the Trust and Loan Companies Act applies. (société de fiducie et de prêt)

Determination of Assets, Net Revenues and Net Premiums

Marginal note:Determination by the Commissioner

2 The Commissioner shall, before December 31 in each calendar year, ascertain

(a) the average total assets in Canada during the fiscal year ending on March 31 of that year of each bank, authorized foreign bank and trust and loan company;
(b) the average total assets in Canada during the immediately preceding calendar year of each retail association;
(c) the total amount of the net revenue received in Canada during the immediately preceding calendar year by Green Shield Canada from its prepayment plans other than administrative services only plans; and
(d) the total amount of net premiums received in Canada during the immediately preceding calendar year by each company and foreign company to which the Insurance Companies Act applies.

Determination of Assessment

Marginal note:Amount to be assessed

3 (1) For the purpose of subsection 18(3) of the Act and subject to subsection (2), the amount assessed by the Commissioner against each financial institution in respect of any fiscal year shall be equal to the base assessment determined for the financial institution in accordance with sections 4 to 8, less any interim assessment prepared against the financial institution pursuant to subsection 18(4) of the Act.

Marginal note:Exception

(2) No assessment is payable in any fiscal year by a financial institution with respect to which the Minister has approved an application for voluntary liquidation and dissolution before the beginning of that fiscal year or with respect to which a court has made a winding-up order under the Winding-up and Restructuring Act before the beginning of that fiscal year.

Determination of Base Assessment for Banks and Authorized Foreign Banks

Marginal note:Base assessment

4 The base assessment of a financial institution that is a bank or an authorized foreign bank shall be equal to, for any fiscal year, the aggregate of

(a) $1,000 and

(b) the amount determined by the formula

(A - B) × C / D
where


is the amount of the expenses that are ascertained pursuant to subsection 18(1) of the Act as having been incurred during the fiscal year for or in connection with the administration of
(i) the Act, to the extent that those expenses are attributable to banks and authorized foreign banks, and
(ii) the provisions referred to in paragraph (a) of the definition consumer provision in section 2 of the Act,


is the aggregate of all the amounts assessed under paragraph (a) against all financial institutions that are banks or authorized foreign banks,


is the average total assets in Canada of the financial institution, ascertained pursuant to paragraph 2(a), and


is the aggregate of the average total assets in Canada for all financial institutions that are banks or authorized foreign banks, other than an institution referred to in subsection 3(2), ascertained pursuant to paragraph 2(a).

Determination of Base Assessment for Trust and Loan Companies

Marginal note:Base assessment

5 The base assessment of a financial institution that is a trust and loan company shall be equal to, for any fiscal year,

(a) where the amount determined by the formula A × B / C is equal to or less than $1,000, the amount of $1,000, and

(b) otherwise, the aggregate of $1,000 and the amount determined by the formula

(B - D) × A / E
where


is the average total assets in Canada of the trust and loan company, ascertained pursuant to paragraph 2(a),


is the amount of the expenses that are ascertained pursuant to subsection 18(1) of the Act as having been incurred during the fiscal year for or in connection with the administration of
(i) the Act, to the extent that those expenses are attributable to trust and loan companies, and
(ii) the provisions referred to in paragraph (d) of the definition consumer provision in section 2 of the Act,


is the aggregate of the average total assets in Canada for all trust and loan companies, other than an institution referred to in subsection 3(2), ascertained pursuant to paragraph 2(a),


is the product obtained by multiplying $1,000 by the number of trust and loan companies assessed pursuant to subsection 18(3) of the Act in respect of that fiscal year, and


is the aggregate of the average total assets in Canada, ascertained pursuant to paragraph 2(a), for each trust and loan company, other than an institution referred to in subsection 3(2), in respect of which the amount determined by the formula A × B / C is greater than $1,000.

Determination of Base Assessment for Retail Associations

Marginal note:Base assessment

6 The base assessment of a financial institution that is a retail association shall be equal to, for any fiscal year,

(a) where the amount determined by the formula A × B / C is equal to or less than $1,000, the amount of $1,000, and

(b) otherwise, the aggregate of $1,000 and the amount determined by the formula

(B - D) × A / E
where


is the average total assets in Canada of the retail association, ascertained pursuant to paragraph 2(b),


is the amount of the expenses that are ascertained pursuant to subsection 18(1) of the Act as having been incurred during the fiscal year for or in connection with the administration of
(i) the Act, to the extent that those expenses are attributable to retail associations, and
(ii) the provisions referred to in paragraph (b) of the definition consumer provision in section 2 of the Act,


is the aggregate of the average total assets in Canada for all retail associations, other than an institution referred to in subsection 3(2), ascertained pursuant to paragraph 2(b),


is the product obtained by multiplying $1,000 by the number of retail associations assessed pursuant to subsection 18(3) of the Act in respect of that fiscal year, and


is the aggregate of the average total assets in Canada, ascertained pursuant to paragraph 2(b), for each retail association, other than an institution referred to in subsection 3(2), in respect of which the amount determined by the formula A × B / C is greater than $1,000.

Determination of Base Assessment for Insurance Companies

Marginal note:Base assessment

7 The base assessment of a financial institution that is a life company or a foreign life company shall be equal to, for any fiscal year,

(a) where the amount determined by the formula A × C / E is equal to or less than $1,000, the amount of $1,000, and

(b) otherwise, the aggregate of $1,000 and the amount determined by the formula

(C - D) × A / B
where


is the total amount of net premiums received in Canada by the financial institution, ascertained pursuant to paragraph 2(d),


is the aggregate of the amounts determined for A, in respect of all financial institutions that are life companies or foreign life companies, other than an institution referred to in subsection 3(2), in respect of which the amount determined by the formula A × C / E is greater than $1,000,


is the amount of the expenses that are ascertained pursuant to subsection 18(1) of the Act as having been incurred during the fiscal year for or in connection with the administration of
(i) the Act, to the extent that those expenses are attributable to life companies and foreign life companies, and
(ii) the provisions referred to in paragraph (c) of the definition consumer provision in section 2 of the Act, to the extent that those expenses are attributable to life companies and foreign life companies,


is the product obtained by multiplying $1,000 by the number of life companies and foreign life companies assessed pursuant to subsection 18(3) of the Act in respect of that fiscal year, and


is the aggregate of the amounts determined for A, in respect of all financial institutions that are life companies or foreign life companies, other than an institution referred to in subsection 3(2).

Marginal note:Green Shield Canada

8 (1) For the purpose of this section, Green Shield Canada shall be considered to be a property and casualty company within the meaning of subsection 2(1) of the Insurance Companies Act.

Marginal note:Base assessment

(2) The base assessment of a financial institution that is an insurance company, other than one referred to in section 7, shall be equal to, for any fiscal year,

(a) where the amount determined by the formula A × C / E is equal to or less than $1,000, the amount of $1,000, and

(b) otherwise, the aggregate of $1,000 and the amount determined by the formula

(C - D) × A / B
where


is
(i) if the insurance company is Green Shield Canada, the total amount of net revenue received in Canada from its prepayment plans other than administrative services only plans, ascertained pursuant to paragraph 2(c), and
(ii) if the insurance company is not Green Shield Canada or an insurance company referred to in section 7, the total amount of net premiums received by it in Canada, ascertained pursuant to paragraph 2(d),


is the aggregate of the amounts determined for A, in respect of all financial institutions that are insurance companies, other than those referred to in subsection 3(2) and section 7, in respect of which the amount determined by the formula A × C / E is greater than $1,000,


is the amount of the expenses that are ascertained pursuant to subsection 18(1) of the Act as having been incurred during the fiscal year for or in connection with the administration of
(i) the Act, to the extent that those expenses are attributable to insurance companies other than ones referred to in section 7,
(ii) the provisions referred to in paragraph (c) of the definition consumer provision in section 2 of the Act, to the extent that those expenses are attributable to insurance companies other than ones referred to in section 7, and
(iii) the provisions referred to in paragraph (e) of the definition consumer provision in section 2 of the Act,


is the product obtained by multiplying $1,000 by the number of insurance companies, other than those referred to in section 7, assessed pursuant to subsection 18(3) of the Act in respect of that fiscal year, and


is the aggregate of the amounts determined in A, in respect of all financial institutions that are insurance companies, other than those referred to in subsection 3(2) and section 7.

Notice of Assessment

Marginal note:Notice in writing

9 The Commissioner shall send to each financial institution a notice in writing of the assessment against it.

Coming into Force

Marginal note:Coming into force

*10 These Regulations come into force on the day on which section 32 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.
Return to footnote *[Note: Regulations in force October 24, 2001, see SI/2001-102.]