FINA Committee Meeting

MINUTES OF PROCEEDINGS

Meeting No. 7

Tuesday, March 20, 2001

The Standing Committee on Finance met at 3:40 p.m. this day, in Room 308, West Block, the Chair, Maurizio Bevilacqua, presiding.

Members of the Committee present: Sue Barnes, Carolyn Bennett, Maurizio Bevilacqua, Scott Brison, Roy Cullen, Ken Epp, Albina Guarnieri, Richard Harris, Sophia Leung, Yvan Loubier, John McCallum, Hon. Lorne Nystrom, Pauline Picard and Gary Pillitteri.

Acting Members present: Mac Harb for Nick Discepola and Hélène Scherrer for Roger Gallaway.

In attendance: From the Legislative Services: Susan Baldwin and Philippe Méla, Legislative Clerks. From the Library of Parliament: Marc-André Pigeon and Blayne Haggart, Researchers; Marion Wrobel, Senior Analyst. From Committees and Associations Directorate: Mike MacPherson, Committee Clerk.

Witnesses: From the Department of Finance: Gerry Salembier, Acting Director, Financial Institutions Division, Financial Sector Policy Branch; Eleanor Ryan, Acting Chief, Structural Issues, Financial Institutions Division; Diane Lafleur, Team Leader, Strategic Planning and Communications, Financial Sector Review Group; Denis Normand, Senior Chief, Payments, Financial Sector Division; Bruce Wood, Senior Project Leader, Structural Issues, Financial Institutions Division; Khusro Saeedi, Economist, Structural Issues, Financial Institutions Division; Peter Torraville, Senior Project Leader, Competition Issues and Transactions, Financial Institutions Division; John Rossi, Policy Analyst, Consumer Issues, Financial Institutions Division; Rhoda Attwood, General Counsel, Legal Services. From the Office of the Superintendent of Financial Institutions Canada: Normand Bergevin, Director, Legislation and Regulations; Alain Prévost, General Counsel.

The Committee resumed consideration of Bill C-8, An Act to establish the Financial Consumer Agency of Canada and to amend certain Acts in relation to financial institutions (See Minutes of Proceedings, Thursday, March 1st, 2001, Meeting No. 2).

The Committee proceeded to Clause-by-Clause consideration of the Bill.

Clause 1 stood.

Clause 2 and 3 carried, severally.

The Chair called Clause 4.

Lorne Nystrom moved, -- That Bill C-8, in Clause 4, be amended by replacing lines 12 and 13 on page 4 with the following:

"4. (1) The Governor in Council shall appoint, after consultation with the Standing Committee of the House of Commons on Finance, an officer to be called the Commis-"

After debate, the question being put on the amendment, it was negatived.

Clause 4 carried.

The Chair Called Clause 5.

Roy Cullen moved, -- That Bill C-8, in Clause 5, be amended by replacing lines 30 to 36 on page 5 with the following:

"(4) When acting under subsection (3), the Commissioner shall have due regard for the role of any department, agency or agent corporation of the Government of Canada or of a province or any organization that has a role in monitoring compliance by financial institutions with voluntary codes of conduct or commitments."

After debate, the question being put on the amendment, it was agreed.

Clause 5, carried, as amended.

Clauses 6-62 carried on division, severally.

The Chair called Clause 63.

Yvan Loubier moved, -- That Bill C-8, in Clause 63, be amended by replacing lines 23 and 24 on page 31 with the following:

"(1.1) A bank shall set out in the notice of a"

After debate, the question being put on the amendment, it was negatived.

Clause 63 carried, on division.

Clauses 64-66 carried, severally, on division.

The Chair called Clause 67.

Yvan Loubier moved, -- That Bill C-8, in Clause 67, be amended by replacing line 28 on page 32 with the following:

", no"

The question being put on the amendment, it was negatived.

Clause 67 carried, on division.

Clauses 68-72 carried, severally, on division.

The Chair called Clause 73.

Yvan Loubier moved, -- That Bill C-8, in Clause 73, be amended by replacing lines 29 and 30 on page 35 with the following:

"widely held bank or to a bank in respect of which"

The question being put on the amendment, it was negatived.

Clause 73 carried, on division.

Clauses 74-83 carried, severally, on division.

The Chair called Clause 84.

Yvan Loubier moved, -- That Bill C-8, in Clause 84, be amended by replacing lines 7 to 9 on page 39 with the following:

"(3) Despite subsection (1), the Minister shall not"

The question being put on the amendment, it was negatived.

Clause 84 carried, on division.

Clauses 85-97 carried, severally.

The Chair called Clause 98.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 26 to 36 on page 45 with the following:

"holder of a bank."

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 40 and 41 on page 45 with the following:

"3(1)(a) and (d), the bank if"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 1 and 2 on page 46 with the following:

"bank and it has controlled,"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 21 to 25 on page 46 with the following:

"ing of paragraph 3(1)(d), the bank and it has controlled, within the"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 35 and 36 on page 46 with the following:

"paragraphs 3(1)(a) and (d), the bank if the"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 3 and 4 on page 47 with the following:

"paragraph 3(1)(d), the bank if the entity is con-"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 16 and 17 on page 47 with the following:

"374.1 (1) Despite section 374, if a bank was"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by deleting lines 34 to 41 on page 48 and lines 1 to 10 on page 49.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, --That Bill C-8, in Clause 98, be amended by replacing lines 11 and 12 on page 49 with the following:

"376. )1) If a widely held bank controls another"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by deleting lines 27 to 30 on page 49.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 39 and 40 on page 49 with the following:

"widely held bank controls a bank (in this"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 43 to 45 on page 49 and lines 1 to 7 on page 50 with the following:

"apply by reason of subsection 376(2), the widely held bank must do all things"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing line 26 on page 50 with the following:

"bank"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 33 to 36 on page 50 with the following:

"shares of any widely held bank that controls the"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, --That Bill C-8, in Clause 98, be amended by deleting lines 38 to 40 on page 50 and lines 1 to 3 on page 51.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by deleting lines 4 to 8 on page 51.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by deleting lines 9 to 22 on page 51.

The question being put on the amendment, it was negatived.

Roy Cullen moved, -- That Bill C-8, in Clause 98, be amended by replacing line 15 on page 51 with the following:

"sections 138, 156.09, 374, 376, 376.01, 376.1, 376.2,"

After debate, the question being put on the amendment, it was adopted.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 19 to 21 on page 52 with the following:

"380. On application by a bank, the Superintendant may exempt any"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 40 and 41 on page 52 with the following:

"respect of a bank if a person with a significant"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended

(a) by deleting lines 31 to 48 on page 55.

(b) by deleting lines 1 to 45 on page 56.

(c) by deleting lines 1 to 46 on page 57.

(d) by deleting lines 1 to 41 on page 58.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 43 to 47 on page 58 with the following:

"particular person contravenes any"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 4 and 5 on page 60 with the following:

"of a bank and cease to control, within the meaning"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 23 and 24 on page 60 with the following:

"be a major shareholder of a bank and cease to"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 41 and 42 on page 60 with the following:

"3(1)(d), a bank and the body corporate"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 98, be amended by replacing lines 34 to 38 on page 62 with the following:

"voting shares of a widely held bank."

The question being put on the amendment, it was negatived.

Clause 98, as amended, carried, on division.

Clauses 99-116 carried, severally, on division.

The Chair called Clause 117.

After debate, the question being put on Clause 117, it was carried, on the following recorded division:

YEAS

Sue Barnes

Carolyn Bennett

Roy Cullen

Hélène Scherrer

Sophia Leung

John McCallum

Gary Pillitteri

Yvan Loubier

Pauline Picard (9)

NAYS

Ken Epp

Richard Harris

Scott Brison (3)

Clause 118-120 carried, severally.

The Chair called Clause 121.

Lorne Nystrom moved, -- That Bill C-8, in Clause 121, be amended by replacing line 6 on page 76 with the following:

"455.1 (1) The Minister shall, for the pur-"

After debate, the question being put on the amendment, it was negatived.

Clause 121 carried.

Clauses 122-126 carried, severally.

The Chair called Clause 127.

Roy Cullen moved, -- That Bill C-8, in Clause 127, be amended by replacing, in the English version, line 10 on page 92 with the following:

"including a specialized financing entity,"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 127, be amended by replacing lines 21 to 30 on page 100 with the following:

"(a) for the purposes of subsection 468(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the banks or other entities in respect of which that subsection does not apply, including prescribing banks or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 468(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the banks or other entities in respect of which either of those subsections does not apply, including prescribing banks or other entities on the basis of the activities they engage in;"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 127, be amended by replacing line 9 on page 108 with the following:

"February 7, 2001;"

After debate, the question being put on the amendment, it was agreed to.

Clause 127, as amended, carried.

Clauses 128-131 carried, severally.

The Chair called Clause 132.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing lines 16 to 37 on page 125 with the following:

"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

1. 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"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by adding after line 16 on page 126 the following:

"(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)."

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing, in the French version, line 14 on page 138 with the following:

"522.01 (1) Le surintendant procède ou fait procéder aux"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing, in the French version, line 2 on page 144 with the following:

"d'une autre entité canadienne ou d'un intérêt de groupe financier dans celle-ci, sauf lorsque :"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing line 37 on page 144 with the following:

"services entity" in subsection 507(1), determined in the prescribed manner,"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing, in the French version, lines 41 to 43 on page 145 with the following:

"tion, conformément au paragraphe (1), par la banque étrangère ou l'entité liée à une banque étrangère du contrôle d'une entité canadienne"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing line 7 on page 150 with the following:

"and that is associated with a foreign bank, that has a financial establishment in Canada may"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing lines 20 to 25 on page 155 with the following:

"(b) for the purposes of subsection 522.22(1) or (2), permitting the acquisition or holding of control or the acquisition or holding of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the foreign banks, entities associated with foreign banks or other entities in respect of which either of those subsections does not apply, including prescribing foreign banks, entities associated with foreign banks or other entities on the basis of the activities they engage in;"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing, in the French version, lines 36 and 37 on page 162 with the following:

"contrôle d'une entité canadienne ou d'un intérêt de groupe financier"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 132, be amended by replacing, in the French version, line 1 on page 163 with the following:

"b) soit l'activité principale au Canada de l'entité"

After debate, the question being put on the amendment, it was agreed to.

Clause 132, as amended, carried.

Clauses 133-182 carried, severally.

The Chair called Clause 183.

Roy Cullen moved, -- That Bill C-8, in Clause 183, be amended by replacing line 7 on page 190 with the following:

"poses of the administration of the Financial Consumer Agency of Canada Act and the consumer"

After debate, the question being put on the amendment, it was agreed to.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 11 to 21 on page 224.

After debate, the question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by replacing lines 4 and 5 on page 240 with the following:

"widely held bank holding company or to a"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 28 to 48 on page 262 and lines 1 and 2 on page 263.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 17 to 43 on page 299 and lines 1 to 41 on page 300.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 1 to 43 on page 301 and lines 1 to 24 on page 302.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 25 to 41 on page 302 and lines 1 to 3 on page 303.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 4 to 29 on page 303.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 30 to 45 on page 303 and lines 1 to 14 on page 304.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 15 to 21 on page 304.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 22 to 29 on page 304.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 30 to 37 on page 304.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 1 to 5 on page 305.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 6 to 13 on page 305.

The question being put on the amendment, it was negatived.

Roy Cullen moved, -- That Bill C-8, in Clause 183, be amended by replacing line 10 on page 305 with the following:

"727, 876, 879, 879.1, 880, 881, 882, 888 and 890,"

After debate, the question being put on the amendment, it was agreed to.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 14 to 26 on page 305.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 27 to 40 on page 305.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by replacing lines 17 and 18 on page 306 with the following:

"company, the"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by replacing lines 41 and 42 on page 306 with the following:

"respect of a bank holding company if a"

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 27 to 29 on page 309.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 1 to 41 on page 310.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 1 to 8 on page 311.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 9 to 32 on page 311.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 33 to 42 on page 311.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 43 to 46 on page 311 and lines 1 to 22 on page 312.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 23 to 44 on page 312 and lines 1 to 5 on page 313.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 6 to 34 on page 313.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 35 to 39 on page 313.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 40 to 46 on page 313 and lines 1 to 44 on page 314.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 1 to 19 on page 315.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 20 to 39 on page 315.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by deleting lines 40 to 45 on page 315 and lines 1 to 16 on page 316.

The question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 183, be amended by replacing lines 29 and 30 on page 317 with the following:

"company; or"

The question being put on the amendment, it was negatived.

Roy Cullen moved, -- That Bill C-8, in Clause 183, be amended by replacing, in the English version, line 5 on page 332 with the following:

"including a specialized financing entity,"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 183, be amended by replacing lines 33 to 42 on page 339 with the following:

"(a) for the purposes of subsection 930(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the bank holding companies or other entities in respect of which that subsection does not apply, including prescribing bank holding companies or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 930(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the bank holding companies or other entities in respect of which either of those subsections does not apply, including prescribing bank holding companies or other entities on the basis of the activities they engage in;"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 183, be amended by replacing line 31 on page 347 with the following:

"February 7, 2001;"

The question being put on the amendment, it was agreed to.

Clause 183, as amended, carried, on division.

Clauses 184-218 carried, severally.

The Chair called Clause 219.

Roy Cullen moved, -- That Bill C-8, in Clause 219, be amended by adding after line 35 on page 395 the following:

" (3) A rule is not a statutory instrument for the purposes of the Statutory Instruments Act."

After debate, the question being put on the amendment, it was agreed to.

Clause 219, as amended, carried.

Clauses 220-233 carried, severally.

The Chair called Clause 234.

After debate, the question being put on the Clause 234, it was carried, on the following recorded division:

YEAS

Sue Barnes

Carolyn Bennett

Roy Cullen

Mac Harb

Hélène Scherrer

Sophia Leung

John McCallum

Gary Pillitteri (8)

NAYS

Ken Epp

Richard Harris

Yvan Loubier

Pauline Picard

Lorne Nystrom

Scott Brison (6)

The Chair called Clause 235.

After debate, the question being put on Clause 235, it was carried, on the following recorded division:

YEAS

Sue Barnes

Carolyn Bennett

Roy Cullen

Mac Harb

Hélène Scherrer

Sophia Leung

John McCallum

Gary Pillitteri (8)

NAYS

Ken Epp

Richard Harris

Yvan Loubier

Pauline Picard

Lorne Nystrom

Scott Brison (6)

Clauses 236-243 carried, severally.

The Chair called Clause 244.

Roy Cullen moved, -- That Bill C-8, in Clause 244, be amended by replacing, in the English version, line 10 on page 408 with the following:

" (4) The Minister shall notify the manager and the participants of"

After debate, the question being put on the amendment, it was agreed to.

Clause 244, as amended, carried.

Clauses 245-247 carried, severally.

On new Clause 247.1

Roy Cullen moved, -- That Bill C-8 be amended by adding after line 29 on page 413 the following:

" 247.1 Every rule of the Canadian Payments Association made under the Canadian Payments Association Act before the coming into force of subsection 2(3) of that Act, as enacted by section 219 of this Act, is deemed to have come into force on the day the rule was made."

After debate, the question being put on the amendment, it was agreed to.

New Clause 247.1 carried.

Clauses 248-313 carried, severally.

The Chair called Clause 314.

Roy Cullen moved, -- That Bill C-8, in Clause 314, be amended by replacing line 44 on page 477 with the following:

"be permitted either to an association under para-"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 314, be amended by replacing, in the English version, line 12 on page 479 with the following:

"including a specialized financing entity,"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 314, be amended by replacing lines 26 to 35 on page 487 with the following:

"(a) for the purposes of subsection 390(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the associations or other entities in respect of which that subsection does not apply, including prescribing associations or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 390(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the associations or other entities in respect of which either of those subsections does not apply, including prescribing associations or other entities on the basis of the activities they engage in;"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 314, be amended by replacing line 21 on page 494 with the following:

"February 7, 2001;"

The question being put on the amendment, it was agreed to.

Clause 314, as amended, carried.

Clauses 315-335 carried, severally.

The Chair called Clause 336.

Roy Cullen moved, -- That Bill C-8, in Clause 336, be amended by replacing line 5 on page 509 with the following:

"tration of the Financial Consumer Agency of Canada Act and the consumer provisions."

The question being put on the amendment, it was agreed to.

Clause 336, as amended, carried.

Clauses 337-355 carried, severally.

The Chair called Clause 356.

Roy Cullen moved, -- That Bill C-8, in Clause 356, be amended by replacing, in the English version, lines 33 and 34 on page 526 with the following:

"sary; or"

After debate, the question being put on the amendment, it was agreed to.

Clause 356, as amended, carried.

Clauses 357-389 carried, severally.

The Chair called Clause 390.

Lorne Nystrom moved, -- Bill C-8 be amended in Clause 314 by adding after line 36 at page 478 the following:

""(iii) the entity is an association and the investment is not restricted by the regulations under paragraph 396(d)."

After debate, the question being put on the amendment, it was negatived.

Clause 390 carried.

Clauses 391-400 carried, severally.

The Chair called Clause 401.

Yvan Loubier moved, -- That Bill C-8, in Clause 401, be amended by replacing lines 19 to 24 on page 546 with the following:

"an aggregate of surplus and minority interests."

After debate, the question being put on the amendment, it was negatived.

Yvan Loubier moved, -- That Bill C-8, in Clause 401, be amended by replacing lines 38 to 44 on page 548 with the following:

"(a) a converted company is"

The question being put on the amendment, it was negatived.

Clause 401 carried, on division.

Clauses 402-425 carried, severally.

The Chair called Clause 426.

Roy Cullen moved, -- That Bill C-8, in Clause 426, be amended by replacing, in the English version, line 24 on page 583 with the following:

"(4)(b), including a specialized financing"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 426, be amended by replacing lines 22 to 31 on page 591 with the following:

"(a) for the purposes of subsection 495(6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the companies or other entities in respect of which that subsection does not apply, including prescribing companies or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 495(7) or (8), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the companies or other entities in respect of which either of those subsections does not apply, including prescribing companies or other entities on the basis of the activities they engage in;"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 426, be amended by replacing line 26 on page 599 with the following:

"February 7, 2001;"

The question being put on the amendment, it was agreed to.

Clause 426, as amended, carried.

Clauses 427-436 carried, severally.

The Chair called Clause 437.

Roy Cullen moved, -- That Bill C-8, in Clause 437, be amended by replacing lines 15 to 24 on page 612 with the following:

"(a) for the purposes of subsection (4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the societies or other entities in respect of which that subsection does not apply, including prescribing societies or other entities on the basis of the activities they engage in; and

(b) for the purposes of subsection (5), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the societies or other entities in respect of which that subsection does not apply, including prescribing societies or other entities on the basis of the activities they engage in."

The question being put on the amendment, it was agreed to.

Clause 437, as amended, carried.

Clauses 438-445 carried, severally.

The Chair called Clause 446.

Roy Cullen moved, -- That Bill C-8, in Clause 446, be amended

(a) by replacing lines 17 to 26 on page 625 with the following:

"446. Section 608 of the Act is replaced by the following:

Adequacy of capital and liquidity - foreign company

608. (1) A foreign company shall, in relation to its insurance risks in Canada, maintain an adequate margin of assets in Canada over liabilities in Canada and adequate and appropriate forms of liquidity and shall comply with any regulations in relation to an adequate margin of assets in Canada over liabilities in Canada and adequate and appropriate forms of liquidity."

(b) by replacing line 40 on page 625 with the following:

"liabilities in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires."

After debate, the question being put on the amendment, it was agreed to.

Clause 446, as amended, carried.

The Chair called Clause 447.

Roy Cullen moved, -- That Bill C-8, in Clause 447, be amended by replacing lines 1 to 5 on page 626 with the following:

"447. Paragraph 610(1)(a) of the English version of the Act is replaced by the following:

"(a) respecting the maintenance by foreign companies of an adequate margin of assets in Canada over liabilities in Canada and adequate and appropriate forms of liquidity;""

The question being put on the amendment, it was agreed to.

Clause 447, as amended, carried.

Clauses 448-464 carried, severally.

The Chair called Clause 465.

Roy Cullen moved, -- That Bill C-8, in Clause 465, be amended by replacing line 9 on page 640 with the following:

"the administration of the Financial Consumer Agency of Canada Act and the consumer provi-"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 465, be amended by replacing, in the English version, line 7 on page 798 with the following:

"including a specialized financing entity,"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 465, be amended by replacing lines 35 to 44 on page 805 with the following:

"(a) for the purposes of subsection 971(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the insurance holding companies or other entities in respect of which that subsection does not apply, including prescribing insurance holding companies or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 971(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the insurance holding companies or other entities in respect of which either of those subsections does not apply, including prescribing insurance holding companies or other entities on the basis of the activities they engage in;"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 465, be amended by replacing line 39 on page 813 with the following:

"February 7, 2001;"

The question being put on the amendment, it was agreed to.

Clause 465, as amended, carried.

Clauses 466-549 carried, severally.

The Chair called Clause 550.

Roy Cullen moved, -- That Bill C-8, in Clause 550, be amended by replacing, in the French version, line 25 on page 891 with the following:

"d'exercer par les articles 417 et 418;"

After debate, the question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 550, be amended by replacing, in the English version, line 43 on page 892 with the following:

"including a specialized financing entity,"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 550, be amended by replacing lines 43 to 46 on page 900 and lines 1 to 6 on page 901 with the following:

"(a) for the purposes of subsection 453(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the companies or other entities in respect of which that subsection does not apply, including prescribing companies or other entities on the basis of the activities they engage in;

(b) for the purposes of subsection 453(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the companies or other entities in respect of which either of those subsections does not apply, including prescribing companies or other entities on the basis of the activities they engage in;"

The question being put on the amendment, it was agreed to.

Roy Cullen moved, -- That Bill C-8, in Clause 550, be amended by replacing line 22 on page 908 with the following:

"February 7, 2001;"

The question being put on the amendment, it was agreed to.

Clause 550, as amended, carried.

Clauses 551-565 carried, severally.

The Chair called Clause 566.

Roy Cullen moved, -- That Bill C-8, in Clause 566, be amended by replacing line 5 on page 920 with the following:

"of the Financial Consumer Agency of Canada Act and the consumer provisions."

The question being put on the amendment, it was agreed to.

Clause 566, as amended, carried.

Clauses 567-573 carried, severally.

The Chair called Clause 574.

Roy Cullen moved, -- That Bill C-8, in Clause 574, be amended by replacing, in the English version, line 22 on page 926 with the following:

"by the Winding-up"

The question being put on the amendment, it was agreed to.

Clause 574, as amended, carried.

Clause 575 carried.

Clause 576 carried.

The Chair called Clause 577.

Roy Cullen moved, -- That Bill C-8, in Clause 577, be amended by replacing, in the English version, line 20 on page 927 with the following:

"by the Winding-up"

After debate, the question being put on the amendment, it was agreed to.

Clause 577, as amended, carried.

Clauses 578-594 carried, severally.

Schedule I carried.

Schedule II carried.

Schedule III carried.

Clause 1 carried.

The Title carried.

The Bill, as amended, carried, on division.

ORDERED, -- That the Chair report Bill C-8, An Act to establish the Financial Consumer Agency of Canada and to amend certain Acts in relation to financial institutions, with amendments, to the House as the First Report of the Committee.

At 5:05 p.m., the Committee proceeded to consider other business.

It was agreed, -- That the Committee host a breakfast on the morning of Wednesday, March 28, 2001 during which it will meet with some Members of the Committee on Economic and Monetary Affairs of the European Parliament.

The Chair presented the First Report of the Sub-Committee on Agenda and Procedure, which was agreed to and is as follows:

FIRST REPORT OF THE SUB-COMMITTEE ON

AGENDA AND PROCEDURE

OF THE

STANDING COMMITTEE ON FINANCE

By unanimous consent, your Sub-Committee on Agenda and Procedure on Standing Committee on Finance met in camera at 4:09 p.m. Tuesday, March 13, 2001, in Room 536, Wellington Building, the Chair, Maurizio Bevilacqua, presiding.

Members of the Sub-Committee present: Maurizio Bevilacqua, Roy Cullen, Richard Harris, Yvan Loubier and Hon. Lorne Nystrom.

Other Member Present: Pauline Picard

In attendance: From the Library of Parliament: Blayne Haggard, Researcher; Marion Wrobel, Senior Analyst. From Committees and Associations Directorate: Mike MacPherson

The Sub-Committee proceeded to consider the future business of the Committee and agreed to make the following report:

That, in relation to Bill C-8, the Committee proceed to clause-by-clause consideration on Tuesday, March 20, 2001 at 3:30 p.m.

That, in relation to Bill C-13, the Committee proceed to hear officials as soon as possible once the legislation has been referred to the Committee and that it hear witnesses on the bill during the week of March 26.

That the Committee hold a Cost Recovery follow-up roundtable.

That the Finance Committee invite those FTAA (Free Trade Area for the Americas) negotiators responsible for matters directly or indirectly touching the financial sector or any other sector relating to the economy or finance; and that they be invited to appear before the Committee on a date prior to April 6, 2001, the last sitting day before the starting date for the Summit of the Americas.

That the Committee hold a roundtable session on the Green Economy.

That the researchers be instructed to prepare outlines of various study topics to be circulated to members for their consideration as possible future business of the Committee

Respectfully submitted

Maurizio Bevilacqua,Chair

At 5:09 p.m., the Committee adjourned to the call of the Chair.

Pat Steenberg

Clerk of the Committee