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Vol. 142, No. 14 — April 5, 2008
By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law
Statutory authority
Canada Deposit Insurance Corporation Act
Sponsoring agency
Canada Deposit Insurance Corporation
REGULATORY IMPACT
ANALYSIS STATEMENT
(This statement is not part of the By-law.)
Description
The Board of Directors of the Canada Deposit Insurance Corporation (CDIC) made the Prescribed Practices Premium Surcharge By-law (the “Premium Surcharge By-law”) on January 26, 1994, pursuant to paragraph 11(2)(g) and subsection 25.1(1) of the Canada Deposit Insurance Corporation Act (CDIC Act). The Premium Surcharge By-law prescribes the practices where, in the opinion of the Corporation, if a member institution is engaging in such practices it may warrant a premium surcharge which the Corporation may assess and collect from the member institution in respect of the premium year or any part thereof. The Premium Surcharge By-law was amended on July 26, 2001, and April 15, 2005.
The Premium Surcharge By-law makes reference to the policy of deposit insurance as prescribed in the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law (the “Policy By-law”). Section 405 of An Act to amend the law governing financial institutions and to provide for related and consequential matters, S.C. 2007, c. 6, (“Amending Statute”) amended subsection 18(3) of the CDIC Act changing the way in which the provisions of the policy are to be prescribed. The form of the policy is no longer to be prescribed. As a result of this technical change to subsection 18(3) of the CDIC Act, in addition to amendments to the Policy By-law, consequential amendments need to be made to the Premium Surcharge By-law to ensure that references to sections of the policy now read as sections of the Schedule to the Policy By-law prescribing provisions of the policy.
The By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (the “Amending By-law”) replaces, in paragraphs 2(1)(a) to (c), references to the policy of deposit insurance with references to the policy of deposit insurance, as prescribed by section 1 of the Policy By-law and as set out in the Schedule to the Policy By-law. These amendments are technical and statutorily driven.
Alternatives
There are no available alternatives. The amendments must be done by way of by-law.
Benefits and costs
The implementation of the Amending By-law will ensure that the Premium Surcharge By-law is consistent with the Policy By-law. No costs should be attributed directly to these changes.
Consultation
As the substantive changes are statutorily driven and technical, only consultation by way of pre-publication in the Canada Gazette, Part I, is necessary.
Compliance and enforcement
There are no compliance or enforcement issues.
Sandra Chisholm
Director, Insurance
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
P.O. Box 2340, Station D
Ottawa, Ontario
K1P 5W5
Telephone: 613-943-1976
Fax: 613-992-8219
Email: schisholm@cdic.ca
Notice is hereby given that the Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a) and subsection 25.1(1) (see footnote b) of the Canada Deposit Insurance Corporation Act (see footnote c), proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law.
Interested persons may make representations concerning the proposed By-law within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Sandra Chisholm, Director, Insurance, Canada Deposit Insurance Corporation, 50 O’Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5 (e-mail: schisholm@cdic.ca).
Ottawa, March 17, 2008
GUY L. SAINT-PIERRE
President and Chief Executive Officer
Canada Deposit Insurance Corporation
BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION PRESCRIBED PRACTICES PREMIUM SURCHARGE BY-LAW
AMENDMENT
1. Paragraphs 2(1)(a) to (c) of the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (see footnote 1) are replaced by the following:
(a) failing to comply with subsection 8(2) of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to have the practices and controls referred to in that subsection;
(b) failing to comply with one or more provisions of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that require the member institution to provide the Corporation with the information specified in that policy;
(c) failing to comply with section 24 of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to prepare and maintain the records specified in that section and to retain those records for the period of time specified in that section;
COMING INTO FORCE
2. This By-law comes into force on the day on which it is registered.
[14-1-o]
Footnote a
R.S., c. 18 (3rd Supp.), s. 51
Footnote b
S.C. 2007, c. 6, s. 408
Footnote c
R.S., c. C-3
Footnote 1
SOR/94-142
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