Regulations Amending the Administrative Monetary Penalties (OSFI) Regulations (Miscellaneous Program): SOR/2020-68
Canada Gazette, Part II, Volume 154, Number 9
Registration
SOR/2020-68 April 7, 2020
OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT
P.C. 2020-222 April 3, 2020
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 25(1) footnote a of the Office of the Superintendent of Financial Institutions Act footnote b, makes the annexed Regulations Amending the Administrative Monetary Penalties (OSFI) Regulations (Miscellaneous Program).
Regulations Amending the Administrative Monetary Penalties (OSFI) Regulations (Miscellaneous Program)
Amendments
1 Item 8 of the schedule to the Administrative Monetary Penalties (OSFI) Regulations footnote 1 is repealed.
2 Items 28 and 29 of the schedule to the Regulations are repealed.
3 The portion of item 30 of the schedule to the Regulations in columns 1, 2, 4 and 5 is replaced by the following:
| Item |
Column 1 |
Column 2 |
Column 4 |
Column 5 |
|---|---|---|---|---|
30 |
Failure to comply without delay with a direction of the Superintendent |
245(2) (with modifications required, as the case may be, under section 598) and 822(2) |
268(2) (with modifications required, as the case may be, under section 649) and 876(2) |
250(2) |
4 The portion of item 31 of the schedule to the Regulations in columns 2 and 4 is replaced by the following:
| Item |
Column 2 |
Column 4 |
|---|---|---|
31 |
312 and 844 |
335, 667(2) and 891 |
5 Item 38 of the schedule to the Regulations is repealed.
6 The portion of item 72 of the schedule to the Regulations in columns 2, 4 and 5 is replaced by the following:
| Item |
Column 2 |
Column 4 |
Column 5 |
|---|---|---|---|
72 |
973.02(2) |
1016.2(2) |
527.4(2) |
Coming into Force
7 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
Canada’s financial sector legislative and regulatory framework supports the stability, efficiency, and utility of the financial service industry to the benefit of all Canadians. As the primary financial regulatory agency responsible for administering the federal financial sector statutes, the Office of the Superintendent of Financial Institutions (OSFI) requires the ability to enforce compliance with key legislative and regulatory provisions, including through the Administrative Monetary Penalties (OSFI) Regulations (the Regulations), to impose an administrative monetary policy for non-compliance with an order or direction of the Superintendent.
As a result of amendments in 2007 to the Bank Act, the Trust and Loan Companies Act, and the Insurance Companies Act, several of the items of the Schedule to the Regulations reference incorrect legislative provisions or are no longer relevant, as the associated legislative provisions have been repealed.
Objective
The objective of the amendments is to ensure that the Schedule to the Regulations accurately reflects provisions under which the Superintendent may impose an administrative monetary penalty.
Description and rationale
The Regulations Amending the Administrative Monetary Penalties Regulations (OSFI) (Miscellaneous Program) amend the Regulations to
- repeal obsolete or spent regulatory provisions which have no current application, as the relevant provisions of the federal financial statutes were repealed in 2007;
- correct references to section numbering; and
- add clarity to a regulatory provision by removing imprecise language in the short-form description.
- Specifically, the current short-form description for item 30 of the Schedule reads: “Failure to comply without delay with a direction to maintain copies of records or further process information in Canada.” Although the short-form description is inserted for convenience of reference only, the current language does not fully capture the underlying legislative provisions and has been simplified to read: “Failure to comply without delay with a direction of the Superintendent.”
The correction of inaccuracies in the Schedule will enhance the ability of the OSFI to enforce compliance with key legislative and regulatory provisions, including through the ability under the Regulations to impose an administrative monetary penalty for non-compliance with an order or direction of the Superintendent. Corrections will also improve clarity for regulated federal financial institutions and other stakeholders regarding requirements under the financial sector statutes and associated regulations.
One-for-one rule
The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business.
Small business lens
The small business lens does not apply to these amendments, as there are no costs to small businesses.
Contact
Richard Bilodeau
Director General
Financial Institutions Division
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario
K1P 5E9
Telephone: 613‑369‑3904
Email: fin.finlegis-legisfin.fin@canada.ca