| Contents |
|---|
| Part 1 — Interpretation and Application |
| | | 1 Definitions and interpretation |
| | | 2 Application of Business Corporations Act |
| | | 3 to 5 Repealed |
| | | 6 Repealed |
| | | 7 Repealed |
| | | 8 Pre-existing trust company |
| | | 9 and 10 Repealed |
| | | 10.1 Specific rules respecting Business Corporations Act application to extraprovincial corporations |
| | | 11 This Act paramount |
| Part 2 — Incorporation, Significant Changes and Winding Up |
| | Division 1 — Names |
| | | 12 Names for trust companies and insurance companies |
| | Division 1.1 — Formation of Trust Companies and Insurance Companies |
| | | 13 Consent required for incorporation |
| | | 14 Preliminary activities |
| | Division 1.2 — Alteration of Charter of Trust Companies and Insurance Companies |
| | | 15 Consent required for alteration of memorandum, notice of articles or articles |
| | Division 1.3 — Conversion of Special Act Insurance Companies |
| | | 16 Consent required for conversion of special Act insurance company |
| | | 17 Continuation of business authorization on conversion of special Act insurance company |
| | Division 1.4 — Continuation of Trust Companies and Insurance Companies |
| | | 18 Consent required for continuation of extraprovincial trust corporation or extraprovincial insurance corporation into British Columbia |
| | | 19 Consent required for continuation of trust company or insurance company out of British Columbia |
| | Division 1.5 — Amalgamation of Trust Companies and Insurance Companies |
| | | 20 Consent required for amalgamation of trust company or insurance company |
| | Division 1.6 — Arrangements, Acquisitions or Dispositions by Trust Companies and Insurance Companies |
| | | 21 Consent of commission to arrangement, acquisition or disposition |
| | Division 1.7 — Background for Consents |
| | | 22 Consent required for continuation or amalgamation |
| | | 23 Commission may obtain information to support consent considerations |
| | Division 2 — Dissolution and Winding Up of Trust Companies and Insurance Companies |
| | | 24 Notice to superintendent required on voluntary dissolution or winding up |
| | | 25 Winding up by Supreme Court order — commission is party |
| | | 26 Liquidation and dissolution on direction of commission |
| | | 27 Application of this Part |
| | | 28 Duties of liquidators on commission-ordered liquidation and dissolution |
| | | 29 Deferral of dissolution |
| | | 30 Publication of notice |
| | | 31 Filing quarterly statements and producing records |
| | | 32 Examination of trust and insurance companies being liquidated and dissolved |
| | | 33 Information required on restoration applications |
| | Division 2 — Repealed |
| | | 34 to 40 Repealed |
| | Division 3 — Special Provisions Respecting Insurance Companies Ceasing Business or Winding Up |
| | | 41 Provisions for subsisting contracts of insurance |
| | | 42 Reinsurance arranged by liquidator |
| | | 43 Rights of the insured on reinsurance |
| | | 44 Termination if reinsurance is not arranged |
| | | 45 Liquidator's duty to give notice |
| | | 46 Provision for payment of losses, preferred claims and unearned premiums |
| | | 47 Endowment and life funds distributed |
| | Division 4 — Ownership of Trust and Insurance Companies |
| | | 48 Definitions and interpretation for Division |
| | | 49 Determination of base level ownership percentage |
| | | 50 Share acquisition restrictions |
| | | 51 Grounds for refusal of consent to major share acquisition |
| | | 52 Reporting requirement |
| | | 53 Shares acquired in contravention of section 50 not registrable |
| | | 54 Prohibition on dividends |
| | | 55 No voting rights if excess shareholdings |
| | | 56 Validity of transfer of voting shares |
| | | 57 Directors' bylaws — members' declarations |
| | | 58 Commission may require declaration of share ownership |
| Part 3 — Business Authorization and Business |
| | Division 1 — Business Authorization of Financial Institution |
| | | 59 Commencement of business |
| | | 60 Business authorizations for corporations now in business |
| | | 61 Application for business authorization |
| | | 62 Conditions on business authorization |
| | | 63 Certificate of business authorization |
| | | 64 Voluntary revocation of business authorization |
| | Division 2 — Operation of Financial Institutions |
| | | 65 Authorized business |
| | | 66 Membership in insurance plan |
| | | 67 Capital and liquidity of financial institutions |
| | | 68 Repealed |
| | | 69 Restriction on right to appoint receiver |
| | Division 3 — Trust Business |
| | | 70 Unauthorized trust business by corporations prohibited |
| | | 71 Repealed |
| | | 72 Common trust funds authorized |
| | | 73 Extent of liability |
| | | 74 Execution of trusts |
| | Division 4 — Insurance Business |
| | | 74.1 Mutual company definition |
| | | 75 Unauthorized insurance business prohibited |
| | | 76 Exceptions |
| | | 77 Reserves |
| | | 78 Reinsurance |
| | | 79 Rebates of premiums prohibited |
| | | 80 Separation of class funds of insurance company |
| | | 80.1 Coverage by property insurer |
| | | 80.2 Obligation of insurer with respect to agent's commission |
| | | 80.3 Complaint resolution |
| | Division 5 — Deposits and Borrowing of Trust Companies and Credit Unions |
| | | 81 Unauthorized deposit business prohibited |
| | | 82 Deposits in credit unions |
| | | 83 Deposits from persons unable to contract |
| | | 84 Disposition of deposits |
| | | 85 Inactive deposits |
| | | 86 Limitation on lending |
| | | 87 Subordinated notes |
| | Division 6 — Marketing of Financial Products |
| | | 88–90 Repealed |
| | | 91 Disclosure of identity in advertising, etc |
| | | 92 Insurers to file policy forms |
| | | 92.1 Requirements of out of province insurers |
| | | 93 Prohibition against unfair forms of contract |
| | | 94 Coercive tied selling prohibited |
| | | 95 Repealed |
| | | 96 Substitute action of commission |
| Part 4 — Corporate Governance |
| | Division 1 — Directors and Officers of Financial Institutions |
| | | 97 Number of directors and unaffiliated directors |
| | | 98 Repealed |
| | | 98.1 Cumulative voting for directors |
| | | 99 Removal of directors and officers |
| | | 100 Credit union directors ceasing to hold office |
| | | 101 Standard of care for directors and officers |
| | | 101.1 Director's application to Supreme Court — commission is party |
| | | 102 Indemnification of directors and officers |
| | | 103 Quorum and unaffiliated directors |
| | | 104 Misuse of confidential information |
| | | 105 Information required of directors and senior officers |
| | | 106 Meeting requested by auditor |
| | | 107 Meeting requested by commission |
| | | 108 Director's statement on own resignation or pending removal |
| | | 109 Circulation of director's statement |
| | | 110 Directors' remuneration |
| | | 111 Committees |
| | | 112 Conduct review committee |
| | Division 2 — Auditors and Audit Committees of Financial Institutions |
| | | 113 Auditor |
| | | 114 Auditor may be a depositor |
| | | 115 Audit committee and unaffiliated directors |
| | | 116 Auditor has right to attend directors' meetings |
| | | 117 Appointment and removal of auditor |
| | | 118 Report to accounting body |
| | | 119 Resignation of auditor |
| | | 120 Auditor appointment for subsidiary |
| | | 121 Amendment of financial statements and auditor's report |
| | | 122 Repealed |
| | | 123 Report to directors |
| | | 124 Additional reporting |
| | | 125 Additional auditor |
| | | 126 No liability |
| | Division 2.1 — Actuaries — Insurance Companies |
| | | 126.1 Definition |
| | | 126.11 Actuaries |
| | | 126.12 Notice of appointment |
| | | 126.13 Designated individual |
| | | 126.14 Qualifications of actuary |
| | | 126.15 Senior officers precluded |
| | | 126.16 Revocation of actuary's appointment |
| | | 126.17 Declaration of vacancy by court |
| | | 126.18 Ceasing to hold office |
| | | 126.19 Filling vacancy |
| | | 126.2 Statement of actuary |
| | | 126.21 Duty of replacement actuary |
| | | 126.22 Right to information |
| | | 126.23 Actuary's valuation |
| | | 126.24 Special valuation |
| | | 126.25 Notice of meeting to actuary |
| | | 126.26 Actuary's report |
| | | 126.27 Report to directors |
| | | 126.28 Report on matters requiring rectification |
| | | 126.29 Actuary's procedures |
| | | 126.3 Qualified privilege |
| | | 126.31 No liability |
| | Division 3 — Books, Records, Returns and Financial Statements of Financial Institutions |
| | | 127 Filings |
| | | 128 Financial statements |
| | | 129 Accounting principles |
| | | 130 Public access to financial information |
| | | 131 Financial year end |
| | | 132 Records filed with registrar |
| | | 133 Location of records |
| | | 134 Repealed |
| | Division 4 — Investments and Lending of Financial Institutions |
| | | 135 Investment and loan committee |
| | | 136 Investment and loan standards |
| | | 137 Commission's powers over investment and lending policy |
| | | 138 Compliance with investment and lending limits |
| | | 139 Credit unions not permitted to invest in other credit unions |
| | | 140 Other authorized loans, investments and activities of subsidiaries |
| | | 141 Investment in a corporation |
| | | 142 Other authorized investments |
| | | 143 Disposal of investments |
| | | 143.1 Loans and guarantees prohibited |
| | | 143.2 Financial assistance restricted |
| | | 143.3 Contract enforceable |
| Part 5 — Related Parties |
| | | 144 Interpretation and designation of related parties |
| | | 145 When related party transactions are permitted |
| | | 146 Conduct review committee's power to approve other transactions |
| | | 147 When commission may consent to related party transactions |
| | | 148 Restrictions on self dealing as a fiduciary |
| | | 149 Disclosure by related parties |
| | | 150 Voidable transactions |
| | | 151 Derivative action |
| | | 152 Liability arising from related party transactions |
| | | 153 Burden of proof |
| | | 154 Reporting by auditor |
| | | 155–156 Repealed |
| Part 6 — Regulation of Other Persons |
| | Division 1 — Extraprovincial Corporations |
| | | 157 Definition of "primary jurisdiction" |
| | | 158 Application of this Division |
| | | 159 Authorized business |
| | | 160 Application for business authorization |
| | | 161 Name |
| | | 162 Records |
| | | 163 Annual audited statements required |
| | | 164 Requirement for notice of regulatory action outside British Columbia |
| | | 165 Examination of extraprovincial corporations |
| | | 166 Amalgamation of extraprovincial corporations |
| | | 167 Notice of ceasing business |
| | Division 2 — Insurance Agents and Adjusters |
| | | 168 Definitions for Division |
| | | 169 Exercise of rights under licence |
| | | 170 Nominees |
| | | 171 Prohibition of unlicensed agents and salespersons |
| | | 172–173 Repealed |
| | | 174 Issue of licences |
| | | 175 Repealed |
| | | 176 Insurance applications to be accepted only from holders of licences |
| | | 177 Selling offences |
| | | 178 Payment of commission to unlicensed agents prohibited |
| | | 179 Persons who may negotiate settlement of personal injury claim |
| | | 180 Prohibition of unlicensed adjusters |
| | | 181–185 Repealed |
| | Division 3 — Reciprocal Exchanges for Insurance |
| | | 186 Interpretation |
| | | 187 Permit for reciprocal insurance |
| | Division 4 — Mutual Fire Insurance Companies |
| | | 188 Definition |
| | | 189 Application |
| | Division 5 — Societies Engaged in Insurance |
| | | 190 Definition of society |
| | | 191 Deemed business authorization for certain existing societies |
| | | 192 Provisions applicable |
| | | 193 Certain other existing societies exempt |
| | | 194 When society not entitled to receive business authorization |
| | | 195 Actuarial certificates |
| | | 196 Limit of insurance money payable |
| | | 197 Amendment of charter |
| | | 198 Society operating outside British Columbia |
| | | 199 Societies |
| | | 200 Provisions applicable to certain societies |
| Part 7 — Administration of the Regulation of Financial Institutions |
| | Division 1 — Financial Institutions Commission |
| | | 201 Financial Institutions Commission |
| | | 202 Constitution of commission |
| | | 202.1 Application of Administrative Tribunals Act |
| | | 203 Panels |
| | | 204 Commission is subject to direction |
| | | 205 Staff |
| | | 206 Requirement to insure |
| | | 207 Superintendent of Financial Institutions |
| | | 208 Power to require undertakings and make agreements |
| | | 209 Capacity outside British Columbia |
| | | 210 Examinations, audits, inspections |
| | | 211 Superintendent may require information |
| | | 211.1 Requirement for notice of action outside British Columbia |
| | | 212 Examination |
| | | 213 Inquiries |
| | | 214 Special examination |
| | | 215 Investigation |
| | | 215.1 Extrajurisdictional evidence |
| | | 215.2 Extrajurisdictional request for evidence |
| | | 216 Immunities, witnesses on a special examination or on an investigation |
| | | 217 Extension of time |
| | | 218 Confidential information |
| | | 219 Agreements with other jurisdictions |
| | Division 2 — Insurance Council of British Columbia |
| | | 219.1 Collecting and sharing information respecting financial institutions |
| | | 220 Establishment of the Insurance Council of British Columbia |
| | | 221 Alternates |
| | | 222 Executive director |
| | | 223 Committees |
| | | 224 Voting |
| | | 225 Meetings |
| | | 225.1 Rules of council |
| | | 225.2 Procedures for and availability of rules |
| | | 225.3 Regulation prevails over council rule |
| | | 226 Administrative policies |
| | | 227 Duties of council |
| | | 228–229 Repealed |
| | | 230 Effect of a transfer of powers to superintendent |
| | | 231 Council may suspend, cancel or restrict licences and impose fines |
| | | 232 Investigation |
| | | 232.1 Powers on investigation |
| | | 233–234 Repealed |
| | Division 3 — Hearings and Appeals |
| | | 235 Orders, consents and refusals to be in writing |
| | | 236 Power to impose conditions |
| | | 237 Hearing requirements |
| | | 238 Summary procedure — superintendent or council |
| | | 238.1 Summary procedure — commission |
| | | 239 Public hearing |
| | | 240 Witnesses at hearings |
| | | 241 Costs of investigation |
| | | 241.1 Assessment of costs |
| | | 242 Appeal from a decision of the superintendent or council |
| | | 242.1 Financial Services Tribunal |
| | | 242.2 Practice and procedure |
| | | 242.3 Judicial review |
| | | 242.4 Appeal from a decision of the commission |
| | | 243 Immunities |
| Part 8 — Sanctions |
| | Division 1 — General Sanctions |
| | | 244 Commission's order to cease or remedy |
| | | 245 Order to freeze property |
| | | 246 Order for compliance |
| | | 247 Valuation of assets and insurance contracts |
| | | 248 Supervision of central credit union |
| | | 249 Revocation of business authorization |
| | | 250 Notice of revocation of business authorization |
| | | 251 Appointment of receiver, etc |
| | Division 2 — Offences and Penalties |
| | | 252 Offences |
| | | 253 Penalties |
| | | 253.1 Administrative penalties |
| | | 253.2 Limitation on proceedings |
| | | 253.3 Failure to pay administrative penalty |
| | | 254 Remedies preserved |
| | | 255 Limitation period |
| | | 256 Court order to comply |
| | | 257 Restitution |
| | | 258 Innocent third parties |
| | | 259 Remedy of irregularities |
| Part 9 — Deposit Insurance and Stabilization of Credit Unions |
| | | 260 Definitions and interpretation for Part |
| | Division 1 — Credit Union Deposit Insurance Corporation of British Columbia |
| | | 261 Credit Union Deposit Insurance Corporation of British Columbia |
| | | 262 General powers of the deposit insurance corporation |
| | | 263 Accounting records |
| | | 264 Appointment of auditor |
| | | 265 Auditor's report |
| | Division 2 — Deposit Insurance |
| | | 266 Guarantee of credit union deposits |
| | | 267 Fund |
| | | 268 Contributions to fund |
| | | 269 Issue of debentures |
| | | 270 Redemption of debentures |
| | | 271 Fund impaired |
| | | 272 Investment by deposit insurance corporation |
| | | 273 Acts not applicable |
| | | 274 Fund protection symbol |
| | Division 3 — Stabilization |
| | | 275 Supervision of credit union |
| | | 276 Duration of supervision |
| | | 277 Orders in relation to credit union that is subject to supervision |
| | | 277.1 Additional circumstances in which section 277 orders may be made |
| | | 277.2 Assistance to administrator in relation to section 277 orders |
| | | 278 Administrator's powers |
| | | 279 Administrator |
| | | 280 Financial assistance |
| | Division 4 — Stabilization Authority |
| | | 281 Stabilization authority defined |
| | | 282 Designation |
| | | 283 Mandatory membership |
| | | 284 Revocation of stabilization authority status and delegated powers |
| | | 285 Commission may delegate to stabilization authority |
| | | 286 Stabilization authority is subject to direction |
| | | 287 Advance from fund to stabilization authority |
| | | 288 Annual report of stabilization authority |
| Part 10 — Regulations and Transition |
| | Division 1 — Regulations |
| | | 289 Regulations |
| | | 290 Transfer of disciplinary powers |
| | Division 2 — Transitional Provisions |
| | | 291 Validity of loans |
| | | 292 Validity of credit union amalgamations before June 25, 1975 |
| | | 293 Variation of agreements |
| Part 11 — Review of Act |
| | | 294 Review of Act |
