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This archived revised Act states the law as of December 31, 1996 and includes provisions enacted and in force by that date. For the most current information, click here. The Revised Statutes of British Columbia, 1996 were brought into force on April 21, 1997 (B.C. Reg. 92/97).
FINANCIAL INSTITUTIONS ACT continued
[RSBC 1996] CHAPTER 141
Part 10 Regulations and Transition
Division 1 Regulations
Section 289 Regulations
289 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or desirable governing the carrying on of trust business, deposit business and insurance business by financial institutions and others, including governing the carrying on by extraprovincial corporations of their business in British Columbia.
(3) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or desirable
(a) prescribing
(i) forms corresponding to any of Forms 1 to 23 of the Second Schedule of the Company Act, and
(ii) other forms whether or not specifically mentioned in this Act or the Company Act as it applies for the purposes of this Act,
(b) requiring the use of forms prescribed under paragraph (a),
(c) respecting information and additional information to be contained in or to accompany
(i) plans under section 18 (2) (b) or 29 (2) (a) (v), or
(ii) personal information returns under section 18 (2) (e), 29 (2) (c) or 105,
(d) prescribing fees to be paid in respect of matters connected with the administration of this Act or of the Company Act as it applies for the purposes of this Act,
(e) for the purpose of section 67,
(i) prescribing the types of liquid assets, and
(ii) establishing formulae or other methods of
(A) determining what constitutes sufficient liquid assets for trust companies, credit unions or extraprovincial trust corporations, and
(B) determining the prescribed percentage referred to in section 67 (2) (b),
(f) for the purpose of section 68,
(i) prescribing the types of assets and types of liabilities that must be included in determining what constitutes a financial institution's or extraprovincial corporation's capital base,
(ii) establishing formulae or other methods of determining the value of those prescribed types of assets and types of liabilities, and
(iii) prescribing the proportion of
(A) the value of those prescribed types of assets, or
(B) the extent of those prescribed types of liabilities that constitutes an adequate capital base for a financial institution or extraprovincial corporation,
(g) imposing conditions respecting
(i) business authorizations,
(ii) licences issued under Division 2 of Part 6, or
(iii) permits issued under section 187 (1),
(h) for the purpose of section 72,
(i) prescribing criteria for common trust accounts of trust companies and credit unions, and
(ii) governing the establishment and operation of common trust accounts by trust companies and credit unions,
(i) prescribing financial statements and interim financial statements required under this Act in addition to or instead of any financial statements required under the Company Act as it applies for the purposes of this Act,
(j) respecting the preparation of financial statements by a financial institution,
(k) prescribing information to be placed before the annual general meeting of a financial institution,
(l) respecting qualifications of auditors of financial institutions,
(m) prescribing responsibilities and duties for the audit committee, the investment and loan committee and the conduct review committee,
(n) requiring surety insurance coverage for directors, officers, agents and employees of financial institutions,
(o) governing the business relationships between financial institutions or extraprovincial corporations and others,
(p) for the purpose of section 77, establishing formulae or other methods and their use in valuing claims liabilities and determining what constitutes the adequate reserves,
(q) prescribing procedures related to the payment of inactive deposits to the Minister of Finance and Corporate Relations under section 85 and requiring financial institutions to give notice to depositors in relation to unclaimed deposits and to keep records of notices as are prescribed, and
(r) respecting the operation, location and relocation of credit union offices.
(4) Without limiting subsection (1) or (2), the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or desirable
(a) prescribing types of loans and investments for the purpose of section 140 and the circ*mstances and conditions under which a subsidiary of a financial institution may make them,
(b) requiring financial institutions to keep records respecting persons who are related parties in relation to them and specifying the nature and extent of the information to be included in those records,
(c) prescribing levels of education and experience for the purpose of section 173 or 182 and prescribing licence restrictions corresponding to those levels,
(d) respecting the replacement of a life insurance contract,
(e) prescribing the duties of insurers and agents in connection with the replacement of a life insurance contract,
(f) respecting the operation and finances of the council,
(g) authorizing the council, for the purpose of funding its expenses, to set by order, and to collect and retain, assessments from
(i) licensees under Division 2 of Part 6,
(ii) applicants for licences under Division 2 of Part 6, and
(iii) insurers authorized to carry on insurance business,
(h) prescribing additional responsibilities and duties of the council,
(i) respecting reinsurance under section 78, including, without limiting this power, restricting the proportion of reinsurance that an insurance company may place with insurers not licensed, registered or otherwise authorized to carry on the business of insurance in Canada,
(j) for the purpose of section 89, authorizing the use of the word "guarantee" and of its derivatives and prescribing the circ*mstances in which a person may use the word and its derivatives,
(k) prescribing circ*mstances and conditions for the purposes of section 266,
(l) prescribing what money invested in non-equity shares or on deposit in a credit union constitutes a separate deposit for the purpose of applying the $100 000 limit in section 266 (2),
(m) despite the definition of "credit union" in section 260
(i) prescribing types of deposits with a central credit union and providing that Division 2 of Part 9 applies to and in respect of the prescribed types of deposit, and
(ii) for the purposes of Division 2 of Part 9 as it may be applied under subparagraph (i), exercising the powers set out in paragraphs (k) and (l) in respect of central credit unions and their deposits,
(n) defining a word or expression used but not defined in this Act or in the Company Act as it applies for the purposes of this Act,
(o) providing that a provision of this Act, of the regulations or of the Company Act as it applies for the purpose of this Act does not apply to or in respect of a person, entity, thing or transaction, and prescribing circ*mstances in which or conditions on which the provision is disapplied under this paragraph, and
(p) designating a company incorporated before September 15, 1990, to which all or part of the Mutual Fire Insurance Companies Act applies, as a mutual company for the purposes of that Division.
(5) Without limiting paragraph (k) or (l) of subsection (4), a regulation under either paragraph may classify deposits in a credit union according to ownership, type or special characteristics.
(6) If a regulation is made for the purpose of a provision of this Act other than Divisions 1, 4 and 5 of Part 6, then, unless the regulation otherwise provides, the regulation also applies in respect of that provision as that provision applies for the purposes of Division 1, 4 or 5, as the case may be, of Part 6.
(7) A regulation made under this Act may
(a) be made applicable generally or to a specific person, entity, thing or transaction, or class of persons, entities, things or transactions,
(b) for the purpose of the regulation, define classes of financial institutions and of extraprovincial corporations, other persons or entities, including classes that may include only one financial institution, one person or one entity,
(c) for the purpose of the regulation, define classes of things or transactions, and
(d) provide differently for different persons, entities, things or transactions, or for different classes of persons, entities, things or transactions.
Section 290 Transfer of disciplinary powers
290 The Lieutenant Governor in Council may
(a) make regulations transferring all of the powers granted to the council under sections 231 to 233 from the council to the superintendent, or
(b) repeal a regulation made under paragraph (a),
effective on a prescribed date that is at least 3 months after the date of deposit of the regulation under the Regulations Act.
Division 2 Transitional Provisions
Section 291 Validity of loans
291 A loan made contrary to this Act, the Credit Union Act, R.S.B.C. 1979, c. 79, a former Credit Unions Act, a rule or a regulation made under them must not be interpreted as having been, or as being, void, and a person who before now has borrowed or under this Act borrows any money from a credit union and any party to an instrument evidencing or securing such borrowing is liable to repay to the credit union the money so borrowed in accordance with the terms of the instrument and any security given for the loan must be construed as having been, and as being, valid and enforceable from the date of its execution and delivery.
Section 292 Validity of credit union amalgamations before June 25, 1975
292 An amalgamation of credit unions and an incorporation of a new credit union as a result of the amalgamation before June 25, 1975, under B.C. Regs. 290/68 and 314/68, or under the authority of the Credit Unions Act, S.B.C. 1961, c. 14, is confirmed and validated as of the date of the amalgamation and incorporation, and everything done by a credit union so incorporated or its directors in the exercise of any power or authority granted to the credit union or its directors under its constitution or rules or under those regulations is declared to be done lawfully and with full authority.
Section 293 Variation of agreements
293 The Lieutenant Governor in Council by regulation may modify, vary or terminate any agreement and regulations pertaining to it entered into under section 72B of the Credit Unions Act, S.B.C. 1961, c. 14.
