CONSOLIDATION

Bank Recapitalization (Bail-in) Issuance Regulations

SOR/2018-58

Current to June 20, 2022 Last amended on September 23, 2018



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 September 23, 2018. 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 September 23, 2018

TABLE OF PROVISIONS Bank Recapitalization (Bail-in) Issuance Regulations

Shares and Liabilities 1

Prescribed shares and liabilities

Terms of Issuance 2

Prescribed liability

Prescribed share

Disclosure

Promotion as deposit — prohibition

Coming into Force *6

180th day after registration

Current to June 20, 2022 Last amended on September 23, 2018

ii

Registration SOR/2018-58 March 27, 2018

BANK ACT Bank Recapitalization (Bail-in) Issuance Regulations

P.C. 2018-337

March 26, 2018

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 485(2)a, section 485.01b and subsection 978(1)c of the Bank Actd, makes the annexed Bank Recapitalization (Bail-in) Issuance Regulations.

a

S.C. 2016, c. 7, s. 160(1)

b

S.C. 2016, c. 7, s. 161

c

S.C. 2010, c. 12, s. 2092

d

S.C. 1991, c. 46

Current to June 20, 2022 Last amended on September 23, 2018

Bank Recapitalization (Bail-in) Issuance Regulations

Shares and Liabilities Prescribed shares and liabilities 1 For the purposes of subsection 485(1.21) and section

485.01 of the Bank Act, the prescribed shares and liabilities are the shares and liabilities that are prescribed under the Bank Recapitalization (Bail-in) Conversion Regulations.

Terms of Issuance Prescribed liability 2 A domestic systemically important bank must ensure that a prescribed liability issued by the bank includes terms that provide for each of the following: (a) the holder of the liability is bound, in respect of that liability, by the Canada Deposit Insurance Corporation Act, including the conversion of the liability into common shares under subsection 39.2(2.3) of that Act and the variation or extinguishment of the liability in consequence, and by the application of the laws of Canada or of a province in respect of the operation of that Act with respect to that liability; (b) the holder of the liability attorns to the jurisdiction of courts in Canada with respect to that Act and those laws; and (c) the terms referred to in paragraphs (a) and (b) are

binding on the holder of the liability despite any other terms of the liability, any other law that governs the liability and any other agreement, arrangement or understanding between the parties with respect to the liability. Prescribed share 3 A domestic systemically important bank must ensure that the terms attached to a prescribed share issued by the bank provide that the share is subject to conversion into common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

Current to June 20, 2022 Last amended on September 23, 2018

Bank Recapitalization (Bail-in) Issuance Regulations Terms of Issuance Sections 4-6

Disclosure 4 A domestic systemically important bank must disclose, in a prospectus, information circular, other offering document or similar document related to a prescribed share or liability, that the share or liability is subject to conversion into common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

Promotion as deposit — prohibition 5 A domestic systemically important bank must not advertise or otherwise promote a prescribed liability, including in its name, to a purchaser in Canada, as a deposit or any variation of that term.

Coming into Force 180th day after registration 6 These Regulations come into force on the 180th day after the day on which they are registered. *

*

[Note: Regulations in force September 23, 2018.]

Current to June 20, 2022 Last amended on September 23, 2018

