FINANCIAL INSTITUTIONS ACT (2024)

FINANCIAL INSTITUTIONS ACT — continued

[RSBC 1996] CHAPTER 141

Part 7 — Administration of the Regulation of
Financial Institutions

Division 1 — Financial Institutions Commission

Section 201 — Financial Institutions Commission

201 The Financial Institutions Commission is established and must exercise the powers and carry out the duties of the commission under this Act.

Section 202 — Constitution of commission

202 (1) The commission consists of at least 2 but not more than 11 members, as follows:

(a) one member must be an individual appointed by the Lieutenant Governor in Council as a member and as the chair of the commission;

(b) one member must be the deputy minister;

(c) each of the other members, if any, must be an individual appointed by the Lieutenant Governor in Council.

(2) The Lieutenant Governor in Council may designate one member of the commission to be vice chair.

(3) The deputy minister in writing may designate an individual, by name or position, to act in the place of the deputy minister at

(a) all meetings or hearings of the commission or of a panel of the commission, or

(b) one or more meetings or hearings, identified in the written designation, of the commission or of a panel of the commission,

and, for the purpose of so acting, the individual designated may exercise the powers and perform the duties of a member.

(4) The chair and the other members of the commission appointed by the Lieutenant Governor in Council may be appointed

(a) on conditions, including remuneration, and

(b) for terms of office, each not exceeding 3 years,

that may vary for different members.

(5) An order of the Lieutenant Governor in Council appointing a member of the commission other than the chair may provide that the member's participation as a member of the commission is limited to specified matters or classes of matters within the jurisdiction of the commission; and a member whose participation is limited by an order under this section may participate as a member only as limited by the order.

(6) An individual who is or has been a member of the commission as an appointee of the Lieutenant Governor in Council is eligible for reappointment or appointment for successive or additional terms, but is not eligible to be a member of the commission for more than 6 years altogether except as both member and chair.

(7) If the chair is absent or incapable of acting, the powers of the chair may only be exercised

(a) by the vice chair, or

(b) if there is no vice chair, or if the vice chair is absent or incapable of acting, by the deputy minister or by the person designated under subsection (3) by the deputy minister, as the case may be.

Section 203 — Panels

203 (1) The chair may

(a) establish one or more panels of the commission consisting of one or more members of the commission, and

(b) appoint the members of the panel.

(2) The chair may refer a matter

(a) that is before the commission to a panel, or

(b) that is before a panel to the commission or to another panel.

(3) In a matter referred to a panel by the chair, a panel has the jurisdiction of the commission and may exercise the powers and perform the duties of the commission.

Section 204 — Commission is subject to direction

204 In a manner consistent with its responsibilities under this Act, the commission must comply with policy directions issued by the minister with respect to the exercise of its powers and the performance of its duties under this Act.

Section 205 — Staff

205 Employees required for the exercise of the powers and the performance of the duties of the commission must be appointed under the Public Service Act, and the commission may determine their duties.

Section 206 — Requirement to insure

206 (1) The commission by order may require a credit union to

(a) carry insurance satisfactory to and against all risks designated by the commission on all directors, committee members, officers and employees of the credit union and its subsidiaries, and

(b) insure the credit union and its assets against all other risks designated by the commission.

(2) A credit union must maintain insurance required by and in a manner satisfactory to the commission.

(3) A credit union and every director, committee member, officer and employee of a credit union must supply the commission any information requested by the commission pertaining to a director, officer, committee member or employee in connection with any insurance required under this section.

Section 207 — Superintendent of Financial Institutions

207 (1) The chair of the commission may appoint an individual as the Superintendent of Financial Institutions and may rescind an appointment under this section.

(2) The superintendent may exercise the powers and perform the duties vested in or imposed on the superintendent under this Act, the Credit Union Incorporation Act and the Company Act as it applies for the purposes of this Act.

(3) The superintendent must comply with the policy directives given by the chair of the commission.

(4) Subject to subsection (1), the superintendent is an employee as defined in the Public Service Act.

Section 208 — Power to require undertakings and make agreements

208 In the administration and enforcement of this Act, the commission or the superintendent may

(a) require and receive written undertakings, and

(b) enter into written agreements.

Section 209 — Capacity outside British Columbia

209 For the purposes of the administration and enforcement of this Act and the regulations, the superintendent may act outside British Columbia as if acting inside it.

Section 210 — Examinations, audits, inspections

210 (1) It is a condition of every business authorization that the financial institution that has it must facilitate examinations, audits and inspections under this Act.

(2) For the purpose of an examination, audit or inspection under this Act,

(a) a financial institution and its subsidiary must prepare and submit to the person conducting the examination, audit or inspection the statements or returns with respect to its business, finances or other affairs that the superintendent requires, and

(b) the officers, agents and employees of the financial institution and its subsidiary must cause its books to be open for inspection and must otherwise facilitate the examination, audit or inspection.

(3) In order to facilitate an examination, audit or inspection of the books and records of a financial institution, the superintendent may require the financial institution and its subsidiary to produce the books and records at the principal place of business, or at another place the superintendent may direct.

(4) If an examination, audit or inspection of a financial institution or a subsidiary is made at an office outside British Columbia, the financial institution, if the superintendent so directs, must pay the costs and expenses in connection with the examination, audit or inspection.

Section 211 — Superintendent may require information

211 The superintendent may order a financial institution to provide information or to produce records specified or otherwise described in the order within the time or at the intervals specified in the order.

Section 212 — Examination

212 (1) At least annually, the superintendent must conduct an examination or appoint a person acting under the superintendent's direction to conduct an examination of the condition and affairs of every financial institution.

(2) On the examination required under this section, the superintendent or other person must make reasonable inquiries respecting

(a) the financial institution's condition and ability to meet its obligations as and when they become due,

(b) the adequacy of the financial institution's business and financial practices and of its management procedures and standards, and

(c) compliance with

(i) any order made under this Act or the Credit Union Incorporation Act,

(ii) a condition under which a consent under this Act or the Credit Union Incorporation Act is given, or

(iii) a condition of its business authorization.

(3) The superintendent or other person may conduct the examination required by this section at the principal place of business and at any office of the financial institution or of any affiliate of the financial institution.

Section 213 — Inquiries

213 (1) The superintendent may address a written inquiry to a financial institution or its subsidiary or to any officer of the financial institution or its subsidiary or to the agent of either of them

(a) for the purpose of ascertaining the condition and ability of the financial institution or its subsidiary to meet its obligations when they become due,

(b) as to the conduct of the business of the financial institution or its subsidiary, or

(c) as to complaints made by insureds, depositors or borrowers of the financial institution or by persons for whom the financial institution or its subsidiary acts in a fiduciary capacity or other interested parties,

and the financial institution, subsidiary, officer or agent so addressed must reply promptly in writing with information or records that the superintendent requests.

(2) If the superintendent makes an inquiry under subsection (1), the superintendent may require the financial institution or its subsidiary to

(a) deliver to each director of the financial institution or the subsidiary a copy of the inquiry and of the reply to the inquiry, and

(b) include a copy of the inquiry and of the reply in the minutes of the next meeting of the directors of the financial institution or of the subsidiary.

Section 214 — Special examination

214 (1) By the minister's own motion or on a written application by an interested party, the minister may appoint a person as a special examiner to make a special inspection, examination and audit of a financial institution's books, accounts and securities, and to inquire generally into the conduct of its business.

(2) An application under subsection (1) must be supported by evidence the minister requires for the purpose of showing that there is good reason for requiring the special inspection, examination and audit to be made and that it is not frivolous, vexatious or prompted by malice.

(3) The minister may require an applicant under subsection (1) to give security for the payment of the costs of the special inspection, examination and audit before appointing the special examiner.

(4) On the conclusion of the special inspection, examination and audit, the special examiner must report in writing to the minister.

(5) On the conclusion of a special inspection, examination and audit, the minister may order the financial institution or the party requesting the special inspection, examination and audit to pay the costs of the special inspection, examination and audit.

Section 215 — Investigation

215 (1) If the superintendent considers it necessary or desirable to establish whether there is or has been compliance by any person with the provisions of this Act or the regulations, the superintendent by order may appoint a person to make an investigation the superintendent considers expedient for the due administration and enforcement of this Act and in the order must direct the scope of the investigation.

(2) For the purpose of an investigation ordered under this section, the person appointed to make the investigation may investigate, inquire into and examine

(a) the affairs of the person in respect of whom the investigation is being made and records, communications, negotiations, transactions, investigations, loans, borrowings and payments to, by, on behalf of, in relation to or connected with the person and property, assets or things owned, acquired or alienated in whole or in part by the person, or by any person acting on behalf of or as agent for the person, and

(b) the assets at any time held, the liabilities, debts, undertakings and obligations at any time existing, the financial or other conditions at any time prevailing in, or in relation to or in connection with the person and the relationship that may at any time exist or have existed between the person and any other person because of investments, purchases, commissions promised, secured or paid, interests held or acquired, purchase or sale of security instruments or other property, the transfer, negotiation or holding of security instruments, interlocking directorates, common control, undue influence or control or any other relationship.

(3) If an investigation is ordered under this section, the superintendent may also appoint an accountant or other expert to examine records and things of the person whose affairs are being investigated.

(4) Every person appointed under subsection (1) or (3) must provide the superintendent with a full and complete report of the investigation including any transcript of evidence and material in that person's possession relating to the investigation.

Section 216 — Immunities, witnesses on a special examination or on an investigation

216 (1) No action for damages because of anything done or omitted to be done in good faith

(a) in the performance or purported performance of any duty, or

(b) in the exercise or purported exercise of any power

under this Act or the regulations may be brought against a special examiner appointed under section 214, a person appointed to make an investigation under section 215 (1) or (3) or a person acting under the authority of either of them.

(2) A special examiner appointed under section 214 and a person appointed to make an investigation under section 215 (1) have the same power

(a) to summon and enforce the attendance of witnesses,

(b) to compel witnesses to give evidence on oath or in any other manner, and

(c) to compel witnesses to produce records and things,

the Supreme Court has for the trial of civil actions, and the failure or refusal of a person

(d) to attend,

(e) to take an oath,

(f) to answer questions, or

(g) to produce the records or things in that person's custody or possession,

makes that person, on application to the Supreme Court, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.

(3) Section 34 (5) of the Evidence Act does not apply for the purposes of

(a) a special inspection, examination and audit under section 214, or

(b) an investigation under section 215.

(4) A person giving evidence

(a) on a special inspection, examination and audit under section 214, or

(b) on an investigation under section 215,

may be represented by counsel.

Section 217 — Extension of time

217 (1) On application, the commission or the superintendent, as appropriate under the applicable provision, may extend the time under this Act within which any return or other record must be filed with, or delivered or submitted to, the commission or superintendent, as the case may be.

(2) The power to extend time under subsection (1) may be exercised before or after the time limit provided under the Act has expired.

Section 218 — Confidential information

218 An individual or entity who, under this Act or the regulations, obtains

(a) information, or

(b) records

that are submitted in accordance with a request that is made or an obligation that is imposed under this Act or the regulations must not disclose the information or records to any individual or entity other than for the purposes of administering this Act and the regulations, for the purposes of a prosecution or if required by law.

Section 219 — Agreements with other jurisdictions

219 Subject to the approval of the Lieutenant Governor in Council, the minister may enter into agreements with the government of Canada, a province or another authority respecting the administration and enforcement of this Act or of comparable legislation of Canada or of another province and, without restricting the generality of this and despite section 218, the agreement may provide for the provision and exchange of information.

Division 2 — Insurance Council of British Columbia

Section 220 — Establishment of the Insurance Council of British Columbia

220 (1) The Insurance Council of British Columbia, established by regulation under the Insurance Act, R.S.B.C. 1979, c. 200, by this subsection,

(a) despite the repeal of section 357 (2) of that Act by this Act, is continued, and

(b) is constituted as a corporation under the name "Insurance Council of British Columbia".

(2) The council consists of 11 voting members appointed under subsection (3) by the Lieutenant Governor in Council and an unlimited number of non-voting members whom the minister may appoint.

(3) The Lieutenant Governor in Council must appoint the 11 voting members of whom

(a) 2 must be officers or employees of insurers authorized in respect of life insurance business,

(b) 2 must be officers or employees of insurers authorized in respect of general insurance business,

(c) 2 must be agents licensed in respect of life insurance,

(d) 2 must be agents or salespersons licensed in respect of at least one class of general insurance,

(e) one must be a licensed insurance adjuster, and

(f) 2 must be individuals who need not be licensed under this Act and who are to be members at large.

(4) Different voting members of the council may be appointed for terms of office that may vary from member to member, each not exceeding 3 years.

(5) An individual who is or has been a voting member of the council is eligible for reappointment or appointment as a voting member for successive or additional terms, but is not eligible to be a voting member for more than 6 years altogether.

(6) The minister may appoint an unlimited number of non-voting members of the council for terms of office that may vary from member to member.

(7) The voting members of the council, from among the voting members, must elect a chair of the council to hold office for a single term of one year.

(8) The members of the council may be paid remuneration for their services in amounts or on a basis established by the Lieutenant Governor in Council.

(9) The members of the council may be reimbursed for their out of pocket expenses in the performance of their duties.

Section 221 — Alternates

221 (1) If a voting member of the council is unable to attend personally any meeting of the council, the voting member, by writing to the chair of the council, may nominate a person who is

(a) licensed as an agent, salesperson, adjuster or is an officer or employee of a licensed insurer, and

(b) of the same representative character as the voting member.

(2) A person nominated under subsection (1) may act in the voting member's place at the meeting and, for the purpose of the meeting, has the same duties and powers, including the power to vote, as the voting member who is unable to attend the meeting.

Section 222 — General manager

222 (1) The council must employ a general manager who holds office during the pleasure of the council.

(2) The general manager must

(a) keep minutes of all the proceedings of the council,

(b) conduct all the correspondence of the council,

(c) make preliminary investigations and obtain information respecting matters the council determines, and

(d) perform other duties assigned by the council.

Section 223 — Committees

223 (1) The council may delegate any duty of the council to hold a hearing that is required under this Act to one or more committees composed of 3 or more members of the council.

(2) A member of the council must not participate in a hearing on any matter in which the member has an interest.

(3) The chair of a committee referred to in subsection (1) must be a voting member of the council.

(4) If the council delegates the duty to hold a hearing to a committee under subsection (1), the committee must hold the hearing and make a written report of the hearing to the council, and after receiving and considering the report the council may decide on the matter that was the subject of the hearing.

Section 224 — Voting

224 Questions arising at a meeting of the council must be decided by a majority of votes cast by its voting members present at the meeting.

Section 225 — Meetings

225 (1) The council must hold a meeting of its voting members at least once in every calendar month and not more than 5 weeks after the last meeting.

(2) The general manager, at the request of the chair or any 2 voting members of the council, must summon a special meeting of the council.

(3) Five days' notice of a special meeting must be given to all voting members.

(4) If a non-voting member of the council serves on a committee that conducts a hearing with respect to a matter that is discussed at a meeting of the voting members of the council, the non-voting member may attend the meeting for the purpose of participating in the discussion of that matter.

(5) Subject to section 221, a non-voting member who attends a meeting under subsection (4) must not vote on council business.

Section 226 — Administrative policies

226 (1) The superintendent may require the council to establish written administrative policies and procedures for exercising its powers and performing its duties under this Act.

(2) The council must submit written administrative policies and procedures prepared under subsection (1) to the superintendent.

(3) If the superintendent has required the council to establish written administrative policies and procedures under subsection (1), the council must not implement them without first receiving the superintendent's consent.

Section 227 — Duties of council

227 In addition to any other duties given to it under this Act or the regulations, the council

(a) may, and on request must, tender advice to the superintendent on insurance matters,

(b) must maintain proper records respecting council business, on any matter before the council or any decision made by the council including

(i) a copy of every licence issued by the council under this Act,

(ii) a record of every decision made by the council under this Act concerning the issue, amendment, suspension, cancellation or transfer of a licence including the reasons for the decision if required,

(iii) records of appeals heard by the Commercial Appeals Commission from decisions of the council,

(iv) copies of approvals delivered to it under section 172 or 181,

(v) every application made to the council under this Act,

(vi) minutes of all proceedings of the council,

(vii) copies of all documents introduced as evidence at hearings, and

(viii) any other records the superintendent may require,

(c) must permit the public to inspect at its office records required to be kept under paragraph (b) (i), (ii), (iii) or (iv), and

(d) must provide to the public on request and on payment of the prescribed fee a copy or extract of any of the council records required to be kept under paragraph (b) (i), (ii), (iii) or (iv).

Section 228 — Suspension of licences if appointment or employment is terminated

228 (1) If

(a) an insurance agent licensed in respect of general insurance business ceases to have authority to bind at least one insurer, as set out in section 173 (1) (c) (vii),

(b) an insurance agent licensed in respect of life insurance business ceases to represent at least one insurer that is authorized to engage in life insurance business,

(c) an insurance salesperson ceases to be employed by the insurance agent named in the insurance salesperson's licence, or

(d) an employed insurance adjuster ceases to be employed by the insurance adjuster named in the employed insurance adjuster's licence,

the licence of that agent, salesperson or employed insurance adjuster immediately

(e) becomes invalid, and

(f) is automatically suspended

without the necessity of the council taking any action.

(2) Immediately on suspension of an insurance agent's licence by subsection (1), the licences of any insurance salespersons employed by that insurance agent

(a) become invalid, and

(b) are automatically suspended

without the necessity of the council taking any action.

(3) A person whose licence is suspended by subsection (1) or (2) must immediately deposit the invalid licence with the council.

Section 229 — Reinstatement at discretion of council

229 (1) On application of the person whose licence is suspended by section 228 (1) or (2), the council may reinstate the licence if the deficiency that resulted in the suspension is remedied.

(2) Immediately on reinstatement under subsection (1) of an insurance agent's licence, the licences of any insurance salespersons who

(a) were employed by that agent at the time of the suspension, and

(b) remain employees of that agent at the time of reinstatement

are also reinstated, automatically and without the necessity of the council taking any further action.

Section 230 — Effect on sections 231 to 233 of a transfer of powers to superintendent

230 On and after the effective date specified in a regulation under section 290 and while the regulation remains in effect, a reference in sections 231 to 233 to the council must be read as a reference to the superintendent.

Section 231 — Council may suspend, cancel or restrict licences and impose fines

231 (1) If, after due investigation, the council determines that the licensee or former licensee or any officer, director, controlling shareholder, partner or nominee of the licensee or former licensee

(a) no longer meets a licensing requirement under section 173 (1) (c) or 182 (1) (c) or did not meet such a requirement at the time the licence was issued,

(b) has breached or is in breach of a condition or restriction of the licence of the licensee,

(c) has made a material misstatement in the application for the licence of the licensee or in reply to an inquiry addressed under this Act to the licensee,

(d) has refused or neglected to make a prompt reply to an inquiry addressed to the licensee under this Act, or

(e) has contravened section 177,

then the council by order may do one or more of the following:

(f) reprimand the licensee or former licensee;

(g) suspend or cancel the licence of the licensee;

(h) attach conditions to the licence of the licensee or amend any conditions attached to the licence;

(i) in appropriate circ*mstances, amend the licence of the licensee by deleting the name of a nominee;

(j) require the licensee or former licensee to cease any specified activity related to the conduct of insurance business or to carry out any specified activity related to the conduct of insurance business;

(k) in respect of conduct described in paragraph (b), (c) or (d), fine the licensee or former licensee an amount

(i) not more than $5 000 in the case of a corporation, or

(ii) not more than $2 000 in the case of an individual.

(2) A person whose licence is suspended or cancelled under this section must surrender the licence to the council immediately.

(3) If the council makes an order under subsection (1) (g) to suspend or cancel the licence of an insurance agent, or insurance adjuster, then the licences of any insurance salesperson employed by the insurance agent, and of any employees of the insurance adjuster are suspended without the necessity of the council taking any action.

(4) If an insurance agent's licence or an insurance adjuster's licence is reinstated, the licences of any insurance salespersons or employees of the insurance adjuster who

(a) were employed by that agent or adjuster at the time of the suspension, and

(b) remain employees of that agent or adjuster at the time of reinstatement,

are also reinstated without the necessity of the council taking any action.

Section 232 — Investigation

232 (1) If the council considers it necessary or desirable

(a) to establish whether there is or has been compliance by a licensee or former licensee, or any officer, director, controlling shareholder, partner or nominee of the licensee or former licensee with the requirements of Division 2 of Part 6, of this Division, of the regulations or of the licence of the licensee or former licensee, or

(b) to ascertain any facts relevant to the exercise of the council's power under section 231,

the council may conduct an investigation or appoint a person acting under the council's direction to conduct an investigation.

(2) The council may determine the scope of an investigation it conducts under subsection (1) and may specify the scope of an investigation by a person it appoints to conduct an investigation under subsection (1).

Section 233 — Costs of investigation

233 On conclusion of an investigation under section 232, the council may order the licensee or former licensee to pay the costs or part of the costs of the investigation.

Section 234 — Notices to Insurance Council as to agents and employees

234 (1) If an insurer appoints or terminates the appointment of a person as its agent, the insurer must notify the council immediately.

(2) If an insurance agent employs or terminates the employment of a person as an insurance salesperson, the agent must notify the council immediately.

(3) If an insurance adjuster employs or terminates the employment of an insurance adjuster employee, the adjuster must notify the council immediately.

(4) If an

(a) insurance agent ceases to have the authority to bind an insurer as set out in section 173 (1) (c) (vii),

(b) insurance salesperson leaves the employment of an insurance agent, or

(c) employed insurance adjuster leaves the employment of an insurance adjuster,

the agent, the employer of the salesperson or the employer of the employed insurance adjuster, as the case may be, must notify the council immediately.

Division 3 — Hearings and Appeals

Section 235 — Orders, consents and refusals to be in writing

235 (1) An order

(a) of the minister under section 38 (1) or (2), 39 (a), 248 or 249,

(b) of the commission under section 61 (2), 164 (2), 206, 248 (1), 275, 276 (e), 277 or 285 (1),

(c) of the superintendent under section 48 (2), 58, 68 (4), 71, 93 (1) or (2), 99 (2), 107 (1), 109 (2), 117 (2), 124 (1), 125, 137, 142 (2), 143, 145 (1) or (2), 193 (2), 197, 211, 215 (1), 244 (2), 245 (1) or (5) or 247, or

(d) of the council under section 231 (1) or 233,

must be in writing.

(2) A consent or refusal of a consent

(a) of the minister under section 18 (1), 23 (4) (c), 27, 28, 50 (4), 69 (1) or 160 (2),

(b) of the commission under section 18 (1), 21 (2) (b), 23 (4) (c), 24 (1) (b), 27 or 276 (c), or

(c) of the superintendent under section 33, 34 (2), 99 (3), 141 (2) (c), 142 (1) (a), (b) or (c), 150 (1) or 226 (3)

must be in writing.

(3) A refusal of the commission to issue

(a) a business authorization, or

(b) a permit under section 187 (1)

must be in writing.

(4) A refusal of the council to issue a licence under Division 2 of Part 6 must be in writing.

(5) Written reasons must be given for

(a) an order referred to in section 237 (2) (a),

(b) a refusal of an order under section 71, 245 (5) or 249 (7) (b),

(c) a refusal of a consent referred to in subsection (2) of this section, and

(d) a refusal to issue

(i) a business authorization,

(ii) a permit under section 187 (1), or

(iii) a licence issued under Division 2 of Part 6.

Section 236 — Power to impose conditions

236 (1) The minister, commission, superintendent or council, depending on which of them has the power to make the order, give the consent or issue the business authorization, permit or licence may

(a) impose conditions that the person considers necessary or desirable in respect of

(i) an order referred to in section 235 (1),

(ii) a consent referred to in section 235 (2),

(iii) a business authorization,

(iv) a permit issued under section 187 (1), or

(v) a licence issued under Division 2 of Part 6, and

(b) remove or vary the conditions by own motion or on the application of a person affected by the order or consent, or of the holder of the business authorization, permit or licence.

(2) A condition imposed under subsection (1) or by the minister under section 249 is conclusively deemed to be part of the order, consent, business authorization, permit or licence in respect of which it is imposed, whether contained in or attached to it or contained in a separate document.

(3) Except

(a) on the written application or with the written permission of the holder, or

(b) in the circ*mstances described in section 164, 231 or 249 (1),

a power of the minister, commission, superintendent or council under this Act to impose or vary conditions in respect of

(c) a business authorization is exercisable only on or before its issue date, or

(d) a permit under section 187 (1) or a licence under Division 2 of Part 6 is exercisable only on or before its issue date

with effect on and after that date.

Section 237 — Hearing requirements

237 (1) This section applies to hearings under this Act except a hearing required under section 249 (3), and the requirements in respect of a hearing under section 249 (3) are set out in section 249.

(2) The minister, commission, superintendent or council, depending on which of them has the power to take the action, must give written notice of the intended action to any person who will be directly affected by it, before taking any of the following actions:

(a) making an order under section 38 (1) or (2), 48 (2), 68 (4), 93 (1) or (2), 99 (2), 109 (2), 125 (1), 137, 143, 145 (1) or (2), 193, 197, 231 (1), 233, 244 (2), 245 (1), 247 (2) or (4), 275 or 277 (d) to (g);

(b) refusing an order under section 71 or 245 (5);

(c) giving a consent referred to in section 235 (2) subject to conditions;

(d) imposing or varying conditions on a previously made order referred to in section 235 (1);

(e) imposing or varying conditions on a previously given consent referred to in section 235 (2);

(f) refusing to give a consent referred to in section 235 (2);

(g) issuing

(i) a business authorization,

(ii) a permit under section 187 (1), or

(iii) a licence under Division 2 of Part 6,

subject to conditions;

(h) imposing or varying conditions in respect of a previously issued

(i) business authorization,

(ii) permit under section 187 (1), or

(iii) licence under Division 2 of Part 6;

(i) refusing to issue a

(i) business authorization,

(ii) permit under section 187 (1), or

(iii) licence under Division 2 of Part 6.

(3) Not later than 14 days after receiving notice under subsection (2) of an intended action, a person directly affected,

(a) by delivering notice in writing to the commission may require a hearing before the commission in any case in which it is the minister or the commission that intends to take the action, or

(b) by delivering notice in writing to the superintendent or the council, as appropriate, may require a hearing

(i) before the superintendent in any case in which it is the superintendent who intends to take the action, and

(ii) before the council in any case in which it is the council that intends to take the action.

(4) A hearing required under subsection (3) must be held within a reasonable time after delivery of the written notice under subsection (2).

(5) After a hearing before the commission, in a case in which the minister proposes to take action the commission must report the results of the hearing to the minister.

(6) After

(a) the expiry of the 14 day period referred to in subsection (3) if no hearing has been required within that period, or

(b) after the hearing, if one has been required within that period,

the minister, the commission, the superintendent or the council, as the case may be, may proceed in the exercise of the powers conferred under this Act in respect of the matter that was the subject of the notice delivered under subsection (2).

Section 238 — Summary procedure in certain cases

238 (1) If the commission, superintendent or council, depending on which of them has the power to make the order,

(a) intends to make an order under section 48 (2), 93 (1) or (2), 99 (2), 145 (1), 231 (1) (g), (h), (i) or (j), 244 (2), 245 (1), 275 or 277 (d) to (f), and

(b) considers that the length of time that would be required to hold a hearing would be detrimental to the due administration of this Act,

then, despite section 237, the commission, superintendent or council, as the case may be, may make the intended order without giving a person directly affected by it an opportunity to be heard, but the commission, superintendent or council, after making the order, must deliver to that person immediately

(c) a copy of the order and written reasons for it, and

(d) written notice of the person's right of appeal under section 242.

(2) Within 14 days after receiving a copy of an order made under subsection (1), the person directly affected by the order,

(a) by written notice delivered to the commission, superintendent or council, may require a hearing before the commission, superintendent or council as the case may be, or

(b) may appeal the order to the Commercial Appeals Commission.

(3) Within a reasonable time after receiving written notice referred to in subsection (2) (a), the commission, superintendent or council, as the case may be, must hold the required hearing and following the hearing must confirm, revoke or vary the order.

(4) On an appeal referred to in subsection (2) (b) to the Commercial Appeals Commission, the appellant may include with the notice of appeal a written request that the Commercial Appeals Commission hear the appeal within 21 days, and in that case, the Commercial Appeals Commission must commence hearing the appeal within 21 days after it receives the notice of appeal.

Section 239 — Public hearing

239 (1) A hearing before the commission, superintendent or council must be open to the public.

(2) If the commission, superintendent or council considers that a public hearing would be unduly prejudicial to a party or witness, the commission, superintendent or council, as the case may be, may order that the public be excluded from all or part of the hearing.

Section 240 — Witnesses at hearings

240 (1) For the purpose of hearings under this Act, the commission, a panel of it, the superintendent or the council has the same power

(a) to summon and enforce the attendance of witnesses,

(b) to compel witnesses to give evidence on oath or in any other manner, and

(c) to compel witnesses to produce records and things

that the Supreme Court has for the trial of civil actions, and the failure or refusal of a person

(d) to attend,

(e) to take an oath,

(f) to answer questions, or

(g) to produce the records or things in his custody or possession

makes the person, on application to the Supreme Court, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.

(2) Section 34 (5) of the Evidence Act does not apply for the purpose of hearings under this Act.

(3) A person giving evidence at a hearing under this Act may be represented by counsel.

Section 241 — Costs of investigation

241 (1) A person convicted of an offence under this Act or the regulations is liable, after review and filing of a certificate under this section, for the costs of the investigation of the offence.

(2) The superintendent may prepare a certificate setting out the cost of the investigation of an offence, including the cost of the time spent by the superintendent or the superintendent's staff and any fees paid to an expert, investigator or witness.

(3) The superintendent may apply to a master or registrar of the Supreme Court to review the certificate under the rules of court as if the certificate were a bill of costs, and on the review the master or registrar must review the costs and may vary them if the master or registrar considers that they are unreasonable or not related to the investigation.

(4) The tariff of costs in the rules of court does not apply to and in respect of a certificate reviewed under this section.

(5) On the review, the master or registrar of the Supreme Court must take into account any costs already paid by the defendant under section 233 in respect of the same investigation.

(6) After review, the certificate may be filed in the court in which the proceedings were heard and may be enforced against the person convicted as if it were an order of the court.

Section 242 — Appeal

242 (1) A person directly affected by a decision described in any of the following paragraphs that is made by the commission, superintendent or council under this Act may appeal the decision to the Commercial Appeals Commission:

(a) an order under section 48 (2), 68 (4), 93 (1) or (2), 99 (2), 109 (2), 125 (1), 137, 143, 145, 193, 197, 231 (1), 233, 244 (2), 245 (1), 247 (2) or (4), 275 or 277 (d) to (g);

(b) a consent referred to in section 235 (2) (b) or (c) given subject to conditions;

(c) the imposition or variation of conditions on a previously given consent referred to in section 235 (2) (b) or (c);

(d) a refusal to give a consent referred to in section 235 (2) (b) or (c);

(e) the issuance subject to conditions

(i) of a business authorization,

(ii) of a permit under section 187 (1), or

(iii) of a licence under Division 2 of Part 6;

(f) the imposition or variation of a condition on a previously issued

(i) business authorization,

(ii) permit under section 187 (1), or

(iii) licence under Division 2 of Part 6;

(g) a refusal to issue

(i) a business authorization,

(ii) a permit under section 187 (1), or

(iii) a licence under Division 2 of Part 6.

(2) No person is disqualified from acting as a member of a panel of the Commercial Appeals Commission on the hearing of an appeal only because the person is a depositor in a trust company or credit union or is a policy holder of an insurance company that is the subject of the proceedings before the panel.

(3) The superintendent

(a) is a party to an appeal of a decision of the council to the Commercial Appeals Commission, and

(b) may appeal a decision of the council to the Commercial Appeals Commission.

Section 243 — Immunities

243 (1) No action for damages because of anything done or omitted to be done in good faith

(a) in the performance or purported performance of any duty, or

(b) in the exercise or purported exercise of any power

under this Act or the regulations may be brought against the commission, a member of it, an administrator appointed under section 248 (4) or 277 (e), the superintendent, the council, a member of it or a person who is subject to the commission's, superintendent's, council's or deposit insurance corporation's direction.

(2) Subsection (1) does not absolve the government from vicarious liability for an act or omission of

(a) the commission or a member of it,

(b) an administrator appointed under section 248 (4) or 277 (e),

(c) the superintendent,

(d) the council or a member of it, or

(e) a person who is subject to the commission's or the superintendent's direction

for which act or omission the government would be vicariously liable if this section were not in force.

(3) Subsection (1) does not absolve the deposit insurance corporation from vicarious liability for an act or omission of a person who is subject to the deposit insurance corporation's direction for which act or omission the deposit insurance corporation would be vicariously liable if this section were not in force.