Vol. 150, No. 13 — June 29, 2016

Registration

SOR/2016-144 June 14, 2016

BANKRUPTCY AND INSOLVENCY ACT
COMPANIES’ CREDITORS ARRANGEMENT ACT
WINDING-UP AND RESTRUCTURING ACT

Regulations Amending Certain Department of Industry Regulations (Miscellaneous Program)

P.C. 2016-513 June 14, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, makes the annexed Regulations Amending Certain Department of Industry Regulations (Miscellaneous Program) pursuant to

(a) section 209 (see footnote a) of the Bankruptcy and Insolvency Act (see footnote b);

(b) section 62 (see footnote c) of the Companies’ Creditors Arrangement Act (see footnote d); and

(c) subsection 22.1(3) (see footnote e) of the Winding-up and Restructuring Act (see footnote f).

Regulations Amending Certain Department of Industry Regulations (Miscellaneous Program)

Bankruptcy and Insolvency Act

Eligible Financial Contract General Rules (Bankruptcy and Insolvency Act)

1 The portion of the definition contrat dérivé in section 1 of the French version of the Eligible Financial Contract General Rules (Bankruptcy and Insolvency Act) (see footnote 1) before paragraph (a) is replaced by the following:

contrat dérivé Contrat financier dont les obligations sont dérivées d’un ou de plusieurs éléments de référence sous-jacents — tels que les taux d’intérêt, les indices, les devises, les matières premières, les titres ou autres titres de participation, les obligations de crédit ou de garantie, les titres de créance, les variables climatiques, la bande passante, le tarif pour le fret, les droits d’émission, les indices de bien immobilier et l’inflation ou autres données macroéconomiques — ou qui se rapportent à un ou plusieurs de ces éléments ou en sont fonction, y compris :

Companies’ Creditors Arrangement Act

Eligible Financial Contract Regulations (Companies’ Creditors Arrangement Act)

2 The portion of the definition contrat dérivé in section 1 of the French version of the Eligible Financial Contract Regulations (Companies’ Creditors Arrangement Act) (see footnote 2) before paragraph (a) is replaced by the following:

contrat dérivé Contrat financier dont les obligations sont dérivées d’un ou de plusieurs éléments de référence sous-jacents — tels que les taux d’intérêt, les indices, les devises, les matières premières, les titres ou autres titres de participation, les obligations de crédit ou de garantie, les titres de créance, les variables climatiques, la bande passante, le tarif pour le fret, les droits d’émission, les indices de bien immobilier et l’inflation ou autres données macroéconomiques — ou qui se rapportent à un ou plusieurs de ces éléments ou en sont fonction, y compris :

Winding-Up and Restructuring Act

Eligible Financial Contract Regulations (Winding-up and Restructuring Act)

3 The portion of the definition contrat dérivé in section 1 of the French version of the Eligible Financial Contract Regulations (Winding-up and Restructuring Act) (see footnote 3) before paragraph (a) is replaced by the following:

contrat dérivé Contrat financier dont les obligations sont dérivées d’un ou de plusieurs éléments de référence sous-jacents — tels que les taux d’intérêt, les indices, les devises, les matières premières, les titres ou autres titres de participation, les obligations de crédit ou de garantie, les titres de créance, les variables climatiques, la bande passante, le tarif pour le fret, les droits d’émission, les indices de bien immobilier et l’inflation ou autres données macroéconomiques — ou qui se rapportent à un ou plusieurs de ces éléments ou en sont fonction, y compris :

Coming into Force

4 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Standing Joint Committee for the Scrutiny of Regulations (SJCSR) has advised the Superintendent of Bankruptcy that there were discrepancies between the English and French versions of the Eligible Financial Contract General Rules (Bankruptcy and Insolvency Act), the Eligible Financial Contract Regulations (Companies’ Creditors Arrangement Act), and the Eligible Financial Contract Regulations (Winding-Up and Restructuring Act) [hereinafter referred to as the regulations]. The definition of « contrat dérivé (derivatives agreement) » is not consistent in the French and English versions of the regulations.

Objective

The objective of the amendments is to ensure harmonization between the English and French versions of the definition for « contrat dérivé (derivatives agreement) ».

Description

The Regulations amend the French definition of “contrat dérivé (derivatives agreement)” to “les titres ou autres titres de participation”.

“One-for-One” Rule

The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to these amendments, as there are no costs to small business.

Rationale

The amendments are in response to the SJCSR’s review of the regulations. The amendments do not impose any costs on government or stakeholders. The amendments ensure harmonization between the English and French versions of the regulations and help to ensure their consistency and clarity.

The French version used “les titres de participation ou autres titres” while the English version used “securities or other ownership interest.” By reversing the list in the French version, it allowed for the possibility that “autres titres” did not have to be “titres de participation.” With the amendments, all “autres titres” will also have to be “titres de participation.”

Contact

Sonia Villeneuve
Senior Policy Analyst
Office of the Superintendent of Bankruptcy
Small Business, Tourism and Marketplace Services
Industry Canada
155 Queen Street
Ottawa, Ontario
K1A 0H5
Email: Sonia.Villeneuve@canada.ca