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MINUTES OF PROCEEDINGS
 
Meeting No. 68
 
Tuesday, February 20, 2007
 

The Standing Committee on Finance met in a televised session at 11:10 a.m. this day, in Room 269, West Block, the Vice-Chair, Massimo Pacetti, presiding.

 

Members of the Committee present: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, Hon. John McCallum, Hon. John McKay, Massimo Pacetti, Pierre A. Paquette, Thierry St-Cyr, Hon. Robert Thibault, Mike Wallace and Judy Wasylycia-Leis.

 

Acting Members present: Mike Allen for Brian Pallister.

 

In attendance: Library of Parliament: Alexandre Laurin, Analyst; June Dewetering, Principal. House of Commons: Marc Toupin, Legislative Clerk.

 

Witnesses: Department of Finance: Serge Dupont, Assistant Deputy Minister, Financial Sector Policy Branch; Colleen Barnes, Senior Chief, Strategic Planning and Trade, Financial Institutions Division; Eleanor Ryan, Chief, Structural Issues, Financial Institutes Division, Financial Sector Policy Branch; Pascale Dugré-Sasseville, Senior Project Leader, Financial Institutions Division, Strategic Planning and Trade, Financial Sector Policy Branch.

 
Pursuant to the Order of Reference of Thursday, December 7, 2006, the Committee resumed consideration of Bill C-37, An Act to amend the law governing financial institutions and to provide for related and consequential matters.
 

The Committee commenced its clause-by-clause study of the Bill.

 

The Chair called Clause 1.

 

By unanimous consent, Clauses 1 to 19 inclusive carried severally.

 

On Clause 20,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 20, be amended by replacing line 4 on page 8 with the following:

“approval of Parliament, acquire control, within”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 20 carried.

 

Clause 21 carried.

 

Clause 22 carried.

 

On new Clause 22.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 7 on page 9 the following new clause:

“22.1 (1) Subparagraph 410(3)(b)(ii) of the Act is replaced by the following:

(ii) the provision of services referred to in paragraph 409(2)(c) or (d); and

(2) Subsection 410(3) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) respecting the rights, liabilities and responsibilities of participants in prescribed electronic funds transfer systems and respecting individual consumer rights.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

By unanimous consent, Clauses 23 to 28 inclusive carried severally.

 

By unanimous consent, Clause 27 previously carried was reconsidered.

 

On Clause 27,

Thierry St-Cyr moved, — That Bill C-37, in Clause 27, be amended by adding after line 43 on page 11 the following:

“(1.1) The bank shall not claim any amount from or enforce a security interest against the victim of an identity theft resulting from a contract between the bank and a person who has appropriated the identity of the victim. On the request of the victim, the bank shall cancel any security interest registered by the bank on the basis of such a contract.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

Clause 27 carried.

 

On Clause 29,

Diane Ablonczy moved, — That Bill C-37, in Clause 29, be amended by replacing line 14 on page 13 with the following:

“is made, in so far as it is known to the bank:”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 29, as amended, carried.

 

Clause 30 carried.

 

On new Clause 30.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 40 on page 14 the following new clause:

“30.1 The Act is amended by adding the following after section 447:

447.1 A bank shall not make a charge, to its customers or to the public, for an electronic funds transfer or the communication of account information initiated from an automated banking machine, whether the machine is owned or operated by the bank or by another person.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

On Clause 31,

Diane Ablonczy moved, — That Bill C-37, in Clause 31, be amended by replacing line 1 on page 15 to line 13 on page 16 with the following:

“448.3 (1) Subject to subsection (2), a bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service

(a) information about all charges applicable to the registered product;

(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;

(c) information about the bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and

(d) any other information that may be prescribed.

(2) The Governor in Council may make regulations specifying the circumstances under which a bank need not provide the information.

(3) In this section, “registered product””

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 448.3(1) (a) after the words “registered product” the following:

“, including all charges arising from the use of an automated banking machine;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 448.3(1) (a) after the words “registered product” the following:

“that gives equal prominence to each charge;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 31, as amended, carried.

 

On new Clause 31.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 15 on page 16 the following new clause:

“31.1 Section 451 of the Act is renumbered as subsection 451(1) and is amended by adding the following:

(2) The cost of borrowing in respect of a credit, payment or charge card shall not exceed the sum of the prime lending rate of the bank and 5%.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

On Clause 32,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 32, be amended by replacing line 16 on page 16 with the following:

“32. (1) Paragraph 455(1)(a) of the Act is replaced by the following

(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from a bank that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;

(2) Section 455 of the Act is amended by”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 32 carried.

 

Clause 33 carried.

 

On Clause 34,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 34, be amended by replacing line 42 on page 16 with the following:

“regulations respecting the maximum period, which shall not exceed 24 hours,”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 34 carried.

 

On new Clause 34.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 4 on page 17 the following new clause:

“34.1 Section 459 of the Act is amended by adding the following after paragraph (a):

(a.1) requiring a bank to establish procedures for informing a customer or a class of customers when the bank has reason to believe that any prescribed information about the customer or class of customers that is or was in the possession of the bank may have become available to a person who is not an officer or employee of the bank;”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 35 carried.

 

On Clause 36,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 36, be amended by replacing line 20 on page 17 with the following:

“activities, the Commissioner shall, in prescribed”

 

After debate, the question was put on the amendment of Judy Wasylycia-Leis and it was agreed to.

 
Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 36, be amended by adding after line 29 on page 17 the following:

“(2.1) During the two-week period preceding a meeting referred to in subsection (2), the bank shall make available and prominently post in the branch and on its website the following information:

(a) the date, time and place of the meeting;

(b) the persons that may attend the meeting;

(c) an outline of the branch activities as described in the latest corporate responsibility report of the bank;

(d) a statistical report with respect to the prescribed classes of services that the branch provides;

(e) a cost-benefit analysis and any other evaluation or analysis used by the bank to determine that the branch should be closed or that activities should cease; and

(f) a description of the alternative service delivery that will be provided by the bank and the measures to help the branch's customers adjust to the closing or cessation of activities.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 36, as amended, carried.

 

By unanimous consent, Clauses 37 to 39 inclusive carried severally.

 

On Clause 40,

Diane Ablonczy moved, — That Bill C-37, in Clause 40, be amended by replacing lines 15 to 20 on page 19 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 40, as amended, carried.

 

By unanimous consent, Clauses 41 to 58 inclusive carried severally.

 

On Clause 59,

Diane Ablonczy moved, — That Bill C-37, in Clause 59, be amended by replacing lines 34 to 39 on page 38 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 59, as amended, carried.

 

By unanimous consent, Clauses 60 to 86 inclusive carried severally.

 

On Clause 87,

Diane Ablonczy moved, — That Bill C-37, in Clause 87, be amended by replacing line 12 on page 52 with the following:

“of the day the payment is made, in so far as it is known to the authorized foreign bank:”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 87, as amended, carried.

 

Clause 88 carried.

 

On Clause 89,

Diane Ablonczy moved, — That Bill C-37, in Clause 89, be amended by replacing line 1 on page 54 to line 17 on page 55 with the following:

“566.1 (1) Subject to subsection (2), an authorized foreign bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the authorized foreign bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service

(a) information about all charges applicable to the registered product;

(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;

(c) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and

(d) any other information that may be prescribed.

(2) The Governor in Council may make regulations specifying the circumstances under which an authorized foreign bank need not provide the information.

(3) In this section, “registered product””

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 566.1 (1) (a) after the words “registered product” the following:

“, including all charges arising from the use of an automated banking machine;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 566.1 (1) (a) after the words “registered product” the following:

“that gives equal prominence to each charge;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 89, as amended, carried.

 
Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 43 on page 53 the following new clause:

“566.01 An authorized foreign bank shall not make a charge, to its customers or to the public, for an electronic funds transfer or the communication of account information initiated from an automated banking machine, whether the machine is owned or operated by the authorized foreign bank or by another person.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

On new Clause 89.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 19 on page 55 the following new clause:

“89.1 Section 569 of the Act is renumbered as subsection 569(1) and is amended by adding the following:

(2) The cost of borrowing in respect of a credit, payment or charge card shall not exceed the sum of the prime lending rate of the bank and 5%.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

On Clause 90,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 90, be amended by replacing line 20 on page 55 with the following:

“90. (1) Paragraph 573(1)(a) of the Act is replaced by the following:

(a) establish procedures for dealing with complaints made by persons having requested or received products or services from the authorized foreign bank that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;

(2) Section 573 of the Act is amended by”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 90 carried.

 

By unanimous consent, Clauses 91 to 101 inclusive carried severally.

 

On new Clause 101.1,

Pierre A. Paquette moved, — That Bill C-37 be amended by adding after line 6 on page 58 the following new clause:

“101.1 The Act is amended by adding, after section 627, the following:

PART XII.2

EQUITY IN COMMUNITY REINVESTMENT

Purpose

627.1 The purpose of this Part is to promote equity in community reinvestment so that every branch of a bank to which this Part applies, while respecting sound administrative and financial management practices, equitably grants credit or advances to persons having a residence or a place of business in the electoral district in which the branch is located, thus correcting the conditions of disadvantage in access to credit experienced by persons from disadvantaged communities.

Interpretation

627.2 In this Part,

‘‘branch of a bank’’ means a branch of one of the banks listed in Schedule I, located in an electoral district where the monthly unemployment rate as established by Statistics Canada has been, on at least one occasion during the preceding calendar year, equal to or higher than the national average established by Statistics Canada for the same month;

‘‘designated person’’ means a person having a residence or a place of business in the electoral district in which a branch of a bank is located;

‘‘electoral district’’ has the same meaning as in the Canada Elections Act.

Application

627.3 The provisions of this Part apply notwithstanding any other provision of this Act.

Obligations

627.4 Subject to section 627.5, a branch of a bank shall implement equity in community reinvestment by instituting such positive policies and practices and making such reasonable accommodations as will ensure that designated persons have access to credit.

627.5 The obligation to implement equity in community reinvestment does not require a branch of a bank to take a particular measure to implement equity in community reinvestment where the taking of that measure would cause undue financial hardship to the branch.

Special Fund

627.6 (1) At the end of each financial year, every branch of a bank shall pay into a special fund an amount equivalent to 5% of its income for the financial year.

(2) The amounts paid into the special fund shall be used to promote microcredit in the electoral district where the branch of a bank is located, and shall be provided to every designated person who applies for them.

(3) For the purposes of this section, ‘‘microcredit’’ means small amounts of money used to start a microbusiness or to become self-employed.

Analysis

627.7 For the purpose of implementing equity in community reinvestment, a branch of a bank shall analyse its operations, systems, rules and practices in order

(a) to determine the difference between the aggregate of amounts deposited annually with the branch of the bank by designated persons and the total loans and advances granted annually by the branch of the bank to designated persons; and

(b) to determine the chief reasons for the difference.

Consultation

627.8 At least once a year, a branch of a bank shall consult with community representatives who have requested a consultation in writing with the branch of a bank and shall invite them to express their opinions on the following matters:

(a) the assistance that community representatives could give to the branch of a bank in implementing equity in community reinvestment; and

(b) the development and implementation of measures by the branch of the bank in order to achieve equity in community reinvestment.

Report

627.9 (1) No later than March 31 in each year, a branch of the bank shall file with the Superintendent a report for the preceding calendar year, prepared in the prescribed form and manner, containing the following information:

(a) the number of deposits made with the branch of a bank by designated persons, broken down by ten thousand dollar increments;

(b) the number of applications for loans and advances received by the branch of a bank from designated persons, broken down by ten thousand dollar increments;

(c) the number of loans made by the branch of a bank to designated persons, broken down by ten thousand dollar increments;

(d) the term of each loan or advance made by the branch of a bank to designated persons, broken down by ten thousand dollar increments;

(e) the number of applications for loans and advances received by the branch of a bank from designated persons and the number of loans and advances made by the branch of a bank to designated persons, broken down by

(i) in the case of a natural person, sex and prescribed age group, and

(ii) in the case of a corporation, the number of years the corporation has been incorporated;

(f) the number of loans made by the branch of a bank to designated persons that were recalled, broken down by ten thousand dollar increments;

(g) a copy of any by-law or policy decision of the branch of a bank relating to the promotion of equity in community reinvestment by the branch of a bank;

(h) a description of the measures taken to implement equity in community reinvestment;

(i) a description of consultations with community representatives to implement equity in community reinvestment;

(j) the percentage of deposits made to the branch of a bank by designated persons as compared with the total amount of deposits made to the branch of a bank; and

(k) any other prescribed information.

(2) The report required by subsection (1) shall make no reference to names or addresses of designated persons.

(3) Where the amount of a loan or advance applied for in respect of which subsection (1) applies is less than five thousand dollars, the branch of a bank may omit the particulars in respect thereof required by subsection (1) from the report required by subsection (1).

627.10 Upon receiving the report required by section 627.9, the Superintendent shall cause a copy to be sent to the Minister forthwith.

627.11 (1) The Superintendent may, by order, direct a branch of a bank to provide the Superintendent with the information required by section 627.9.

(2) Any branch of a bank to which a direction has been issued under subsection (1) shall provide the information specified in the order within the time specified in the order.

627.12 (1) Within six months of receiving the report referred to in section 627.9, the Superintendent shall conduct an evaluation, in accordance with the criteria established under section 627.15, to determine whether the branch of a bank is making reasonable efforts to implement equity in community reinvestment.

(2) No later than September 30 in every year, the Superintendent shall submit a detailed activity report to the Minister concerning the evaluation made by the Superintendent under subsection (1).

(3) The report shall be based on an analysis of the information and documents obtained under section 627.9 and the comments received under subsection (4) and shall be prepared so as to allow the name and address of each branch of a bank to be known.

(4) Before submitting the report to the Minister, the Superintendent shall give each branch of a bank that so requests an opportunity to make comments, orally or in writing, to the Superintendent.

(5) As part of the duties referred to in subsection (1), the Superintendent or a person acting under the Superintendent’s direction

(a) has a right of access to any records and policy documents of a branch of a bank; and

(b) may require the directors, officers and the auditor of a branch of a bank to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the information required to be filed with the Superintendent by the branch of a bank under section 627.9.

627.13 The Minister shall cause the report referred to in section 627.12 to be laid before each House of Parliament within the first five sitting days on which that House is sitting after the report is received by the Minister.

627.14 Within five days after the report has been laid before each House of Parliament under section 627.13, the Minister

(a) shall cause a copy of the pages of the report that concern a branch of a bank to be sent to the branch of a bank; and

(b) shall make the report available on request to members of the public for consultation and shall provide a copy or a part of a copy of the report on payment of a fee, not to exceed the costs of furnishing the copy.

627.15 (1) For the purposes of section 627.12, the Superintendent shall, after consultation with the community representatives that, in the Superintendent’s opinion, have relevant knowledge, establish criteria to assist the Superintendent in determining whether a branch of a bank is making reasonable efforts to implement equity in community reinvestment.

(2) The Superintendent may also consult any other person or organization that, in the Superintendent’s opinion, has relevant knowledge.

Offences and Punishments

627.16 (1) Every person who contravenes section 627.9 or an order made under section 627.11 is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

(2) Every person who contravenes section 627.8 is guilty of an offence and liable on summary conviction to a fine not exceeding fifty thousand dollars.

(3) Any proceedings in respect of an offence under subsection (1) or (2) may be instituted at any time within one year of the time the subject-matter of the proceedings arose.

(4) Where an offence under subsection (1) is committed or continued on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

627.17 A person who contravenes section 627.4 or 627.7 does not commit an offence and accordingly the Criminal Code does not apply.

Powers, Duties and Functions of the Minister

627.18 The Minister

(a) shall institute information programs in every branch of a bank to ensure that the provisions of this Part are understood;

(b) shall undertake or sponsor research related to the purpose of this Part;

(c) shall promote, by any means that the Minister considers appropriate, the purpose of this Part;

(d) shall develop and conduct programs to recognize a branch of a bank for outstanding achievement in implementing equity in community employment; and

(e) shall establish the terms and conditions for the application of section 627.6, which provides for the payment of amounts into a special fund to promote microcredit.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

By unanimous consent, Clauses 102 to 104 inclusive carried severally.

 

On new Clause 104.1,

Judy Wasylycia-Leis moved, — That Bill C-37 be amended by adding after line 21 on page 58 the following new clause:

“104.1 The Act is amended by adding the following after section 661:

661.1 Despite section 658, the Commissioner shall

(a) maintain a record of the name of each bank or authorized foreign bank that violates the consumer provisions and the corresponding prescribed category of the violation; and

(b) publish the record on the Agency's website and make a written copy available upon request.”

 

The Chair ruled the proposed amendment inadmissible because it sought to amend sections of the parent Act not amended by the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

By unanimous consent, Clauses 105 to 121 inclusive carried severally.

 

On Clause 122,

Diane Ablonczy moved, — That Bill C-37, in Clause 122, be amended by replacing lines 1 to 6 on page 64 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 122, as amended, carried.

 

By unanimous consent, Clauses 123 to 162 inclusive carried severally.

 

On Clause 163,

Diane Ablonczy moved, — That Bill C-37, in Clause 163, be amended by replacing line 29 on page 91 with the following:

“payment is made, in so far as it is known to the retail association:”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 163, as amended, carried.

 

Clause 164 carried.

 

On Clause 165,

Diane Ablonczy moved, — That Bill C-37, in Clause 165, be amended by replacing line 15 on page 93 to line 34 on page 94 with the following:

“385.131 (1) Subject to subsection (2), a retail association shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the retail association provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service

(a) information about all charges applicable to the registered product;

(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;

(c) information about the retail association’s procedures relating to complaints about the application of any charge applicable to the registered product; and

(d) any other information that may be prescribed.

(2) The Governor in Council may make regulations specifying the circumstances under which a retail association need not provide the information.

(3) In this section, “registered product””

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 385.131 (1) (a) after the words “registered product” the following:

“that gives equal prominence to each charge;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 165, as amended, carried.

 

On Clause 166,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 166, be amended by replacing line 37 on page 94 with the following:

“166. (1) Paragraph 385.22(1)(a) of the Act is replaced by the following:

(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the retail association that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;

(2) Section 385.22 of the Act is amended”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 166 carried.

 

Clause 167 carried.

 

On Clause 168,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 168, be amended by replacing line 19 on page 95 with the following:

“regulations respecting the maximum period, which shall not exceed 24 hours,”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 168 carried.

 

On Clause 169,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 169, be amended by replacing line 43 on page 95 with the following:

“activities, the Commissioner shall, in prescribed”

 

After debate, the question was put on the amendment of Judy Wasylycia-Leis and it was agreed to.

 
Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 169, be amended by adding after line 8 on page 96 the following:

“(2.1) During the two-week period preceding a meeting referred to in subsection (2), the member association shall make available and prominently post in the branch and on its website the following information:

(a) the date, time and place of the meeting;

(b) the persons that may attend the meeting;

(c) an outline of the branch activities as described in the latest corporate responsibility report of the member association;

(d) a statistical report with respect to the prescribed classes of services that the branch provides;

(e) a cost-benefit analysis and any other evaluation or analysis used by the member association to determine that the branch should be closed or that activities should cease; and

(f) a description of the alternative service delivery that will be provided by the member association and the measures to help the branch's customers adjust to the closing or cessation of activities.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 169, as amended, carried.

 

By unanimous consent, Clauses 170 to 172 inclusive carried severally.

 

On Clause 173,

Diane Ablonczy moved, — That Bill C-37, in Clause 173, be amended by replacing lines 35 to 40 on page 97 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that an association is permitted to engage in under subsection 376(2), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 173, as amended, carried.

 

By unanimous consent, Clauses 174 to 229 inclusive carried severally.

 

On Clause 230,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 230, be amended by replacing lines 12 to 23 on page 125 with the following:

“230. (1) Paragraph 486(1)(a) of the Act is replaced by the following:

(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the company that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 230 carried.

 

By unanimous consent, Clauses 231 to 234 inclusive carried severally.

 

On Clause 235,

Diane Ablonczy moved, — That Bill C-37, in Clause 235, be amended by

(a) replacing lines 36 to 41 on page 127 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a company is permitted to engage in under subsection 441(1.1), and

(iii) the provision of investment counselling services and portfolio management services.”

(b) replacing line 6 on page 130 with the following:

“(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity, and

(ii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 235, as amended, carried.

 

By unanimous consent, Clauses 236 to 252 inclusive carried severally.

 

On Clause 253,

Diane Ablonczy moved, — That Bill C-37, in Clause 253, be amended by replacing lines 25 to 30 on page 137 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a company is permitted to engage in under subsection 441(1.1), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 253, as amended, carried.

 

By unanimous consent, Clauses 254 to 279 inclusive carried severally.

 

On Clause 280,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 280, be amended by replacing line 29 on page 152 with the following:

“Canada from the foreign company that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 280 carried.

 

By unanimous consent, Clauses 281 to 325 inclusive carried severally.

 

On Clause 326,

Diane Ablonczy moved, — That Bill C-37, in Clause 326, be amended by replacing lines 30 to 35 on page 171 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a company is permitted to engage in under subsection 441(1.1), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 326, as amended, carried.

 

By unanimous consent, Clauses 327 to 360 inclusive carried severally.

 

On Clause 361,

Diane Ablonczy moved, — That Bill C-37, in Clause 361, be amended by replacing line 6 on page 191 with the following:

“the payment is made, in so far as it is known to the company:”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 361, as amended, carried.

 

Clause 362 carried.

 

On Clause 363,

Diane Ablonczy moved, — That Bill C-37, in Clause 363, be amended by replacing line 38 on page 192 to line 8 on page 194 with the following:

“434.1 (1) Subject to subsection (2), a company shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the company provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service

(a) information about all charges applicable to the registered product;

(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;

(c) information about the company’s procedures relating to complaints about the application of any charge applicable to the registered product; and

(d) any other information that may be prescribed.

(2) The Governor in Council may make regulations specifying the circumstances under which a company need not provide the information.

(3) In this section, “registered product””

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

By unanimous consent, Judy Wasylycia-Leis moved, — That the amendment previously adopted by the Committee be amended by adding in subsection 434.1 (1) (a) after the words “registered product” the following:

“that gives equal prominence to each charge;”

 

The question was put on the subamendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 363, as amended, carried.

 

On Clause 364,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 364, be amended by replacing line 11 on page 194 with the following:

“364. (1) Paragraph 441(1)(a) of the Act is replaced by the following:

(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the company that meet or exceed standards established by the International Organization for Standardization with respect to complaints handling;

(2) Section 441 of the Act is amended by”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 364 carried.

 

Clause 365 carried.

 

On Clause 366,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 366, be amended by replacing line 37 on page 194 with the following:

“regulations respecting the maximum period, which shall not exceed 24 hours,”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 366 carried.

 

On Clause 367,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 367, be amended by replacing line 17 on page 195 with the following:

“activities, the Commissioner shall, in prescribed”

 

After debate, the question was put on the amendment of Judy Wasylycia-Leis and it was agreed to.

 
Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 367, be amended by adding after line 26 on page 195 the following:

“(2.1) During the two-week period preceding a meeting referred to in subsection (2), the company shall make available and prominently post in the branch and on its website the following information:

(a) the date, time and place of the meeting;

(b) the persons that may attend the meeting;

(c) an outline of the branch activities as described in the latest corporate responsibility report of the company;

(d) a statistical report with respect to the prescribed classes of services that the branch provides;

(e) a cost-benefit analysis and any other evaluation or analysis used by the company to determine that the branch should be closed or that activities should cease; and

(f) a description of the alternative service delivery that will be provided by the company and the measures to help the branch's customers adjust to the closing or cessation of activities.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 367, as amended, carried.

 

By unanimous consent, Clauses 368 to 370 inclusive carried severally.

 

On Clause 371,

Diane Ablonczy moved, — That Bill C-37, in Clause 371, be amended by replacing lines 19 to 24 on page 197 with the following:

“(b) a mutual fund entity; or

(c) an entity whose business is limited to engaging in one or more of the following:

(i) the activities of a mutual fund distribution entity,

(ii) any activity that a company is permitted to engage in under paragraph 410(1)(d.1), and

(iii) the provision of investment counselling services and portfolio management services.”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 371, as amended, carried.

 

By unanimous consent, Clauses 372 to 435 inclusive carried severally.

 

On Clause 436,

Judy Wasylycia-Leis moved, — That Bill C-37, in Clause 436, be amended by replacing line 21 on page 229 with the following:

“committed by a natural person, and $500,000”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived.

 

Clause 436 carried.

 

Clause 437 carried.

 

Clause 438 carried.

 

On Clause 439,

Diane Ablonczy moved, — That Bill C-37, in Clause 439, be amended by

(a) replacing line 38 on page 230 with the following:

“439. (1) Paragraph 10(1)(h) of the Investment

(b) adding after line 41 on page 230 the following:

“(2) Subparagraphs 10(1)(j)(ii) and (iii) of the Act are replaced by the following:

(ii) a foreign entity that has been approved by order of the Superintendent of Financial Institutions under Part XIII of the Insurance Companies Act to insure in Canada risks, on the condition that the gross investment revenue of the company from the Canadian business is included in computing the income of the company under subsection 138(9) of the Income Tax Act and the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under that Part, or

(iii) a corporation incorporated in Canada, all the issued voting shares of which, other than the qualifying voting shares of directors, are owned by an insurance company described in subparagraph (i), a foreign entity described in subparagraph (ii) or by a corporation controlled directly or indirectly through the ownership of voting shares by such an insurance company or foreign entity, on the condition that, in the case of a foreign entity described in subparagraph (ii), the voting interests of the entity carrying on the Canadian business, or the assets used in carrying on the Canadian business, are vested in trust under Part XIII of the Insurance Companies Act; and”

 

After debate, the question was put on the amendment of Diane Ablonczy and it was agreed to.

 

Clause 439, as amended, carried.

 

By unanimous consent, Clauses 440 to 452 inclusive carried severally.

 

The Title carried.

 

The Bill, as amended, carried on division.

 

ORDERED, — That the Chair report the Bill,as amended, to the House.

 

ORDERED, — That Bill C-37, as amended, be reprinted for the use of the House at report stage.

 

At 12:28 p.m., the sitting was suspended.

At 12:36 p.m., the sitting resumed.

 

At 1:17 p.m., the Committee adjourned to the call of the Chair.

 



Elizabeth B. Kingston
Clerk of the Committee

 
 
2007/02/27 5:49 p.m.