CONSOLIDATION

Disclosure of Interest (Authorized Foreign Banks) Regulations

SOR/99-272

Current to June 20, 2022 Last amended on November 21, 2014



OFFICIAL STATUS OF CONSOLIDATIONS Subsections 31(1) and (3) of the Legislation Revision and Consolidation Act, in force on June 1, 2009, provide as follows: Published consolidation is evidence

31 (1) Every copy of a consolidated statute or consolidated regulation published by the Minister under this Act in either print or electronic form is evidence of that statute or regulation and of its contents and every copy purporting to be published by the Minister is deemed to be so published, unless the contrary is shown. ... Inconsistencies in regulations

(3) In the event of an inconsistency between a consolidated regulation published by the Minister under this Act and the original regulation or a subsequent amendment as registered by the Clerk of the Privy Council under the Statutory Instruments Act, the original regulation or amendment prevails to the extent of the inconsistency.

LAYOUT The notes that appeared in the left or right margins are now in boldface text directly above the provisions to which they relate. They form no part of the enactment, but are inserted for convenience of reference only.

NOTE This consolidation is current to June 20, 2022. The last amendments came into force on November 21, 2014. Any amendments that were not in force as of June 20, 2022 are set out at the end of this document under the heading “Amendments Not in Force”.

Current to June 20, 2022 Last amended on November 21, 2014

TABLE OF PROVISIONS Disclosure of Interest (Authorized Foreign Banks) Regulations 1

Interpretation

Application

Disclosure in Respect of Deposit Accounts

Disclosure in Respect of Advertising

Coming into Force

Current to June 20, 2022 Last amended on November 21, 2014

ii

Registration SOR/99-272 June 23, 1999

BANK ACT Disclosure of Interest (Authorized Foreign Banks) Regulations P.C. 1999-1158

June 23, 1999

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 560 to 562a of the Bank Actb, hereby makes the annexed Disclosure of Interest (Authorized Foreign Banks) Regulations.

a

S.C. 1999, c. 28, s. 35(1)

b

S.C. 1991, c. 46

Current to June 20, 2022 Last amended on November 21, 2014

Disclosure of Interest (Authorized Foreign Banks) Regulations

Interpretation 1 The definitions in this section apply in these Regulations. Act means the Bank Act. (Loi) deposit account means an interest-bearing deposit account. (compte de dépôt) point of service means a physical location to which the public has access and at which an authorized foreign bank carries on business with the public and opens or initiates the opening of deposit accounts through natural persons in Canada. (point de service) SOR/2009-44, s. 1.

Application 2 These regulations apply to authorized foreign banks that are not subject to the restrictions and requirements referred to in subsection 524(2) of the Act.

Disclosure in Respect of Deposit Accounts 3 (1) Subject to subsection (1.1), an authorized foreign bank shall disclose to a person who requests the authorized foreign bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated (a) where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or (b) where no statement of account is provided in respect of the deposit account, by means of (i) a written statement copies of which are available and displayed in each branch of the authorized foreign bank where deposit accounts are kept, or (ii) a general notice that is displayed in each of the

authorized foreign bank’s branches where deposit accounts are kept, at each of the authorized foreign bank’s points of service and on the authorized

Current to June 20, 2022 Last amended on November 21, 2014

Disclosure of Interest (Authorized Foreign Banks) Regulations Disclosure in Respect of Deposit Accounts Sections 3-5

foreign bank’s websites through which it offers deposit accounts in Canada. (1.1) In the case of the opening of a deposit account on a

telephone request as contemplated by subsection 564(3) of the Act, an authorized foreign bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated. (2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include (a) the annual rate of interest; (b) the frequency of payment of interest; (c) the manner, if any, in which the balance in the deposit account affects the rate of interest; and (d) any other circumstance that affects the rate of interest. (3) A written statement referred to in subsection (1.1) that is sent to a customer by mail is deemed to be provided to the customer on the fifth day after the postmark date on the statement. SOR/2001-468, s. 1; SOR/2009-44, s. 2; SOR/2014-273, s. 3(F).

4 Where there is a change in the rate of interest, or in the manner of calculating the amount of interest, that is applicable to a deposit account, the authorized foreign bank shall disclose the changes by means of (a) a written statement delivered to the person in

whose name the account is maintained; (b) a written statement copies of which are available

and displayed in each branch of the authorized foreign bank where deposit accounts are kept; or (c) a general notice that is displayed in each of the authorized foreign bank’s branches where deposit accounts are kept, at each of the authorized foreign bank’s points of service and on the authorized foreign bank’s websites through which it offers deposit accounts in Canada. SOR/2009-44, s. 3; SOR/2014-273, s. 4(F).

5 [Repealed, SOR/2009-44, s. 4]

Current to June 20, 2022 Last amended on November 21, 2014

Disclosure of Interest (Authorized Foreign Banks) Regulations Disclosure in Respect of Advertising Sections 6-7

Disclosure in Respect of Advertising 6 For the purposes of section 561 of the Act, in all advertisements in respect of interest-bearing deposits or debt obligations, an authorized foreign bank shall disclose how the amount of interest applicable to each deposit and debt obligation is to be calculated by means of a statement in the advertisement that clearly discloses (a) in respect of interest-bearing deposits, the manner, if any, in which the balance of a deposit account will affect the rate of interest; and (b) any other circumstance that will affect the rate of

interest.

Coming into Force 7 These Regulations come into force on June 28,

1999. Current to June 20, 2022 Last amended on November 21, 2014

Disclosure of Interest (Authorized Foreign Banks) Regulations AMENDMENTS NOT IN FORCE

AMENDMENTS NOT IN FORCE — SOR/2021-181, par. 122 (c) 122 The following Regulations are repealed: (c) the Disclosure of Interest (Authorized Foreign Banks) Regulations14;

SOR/99-272

Current to June 20, 2022 Last amended on November 21, 2014

