Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsections 23.1(4) a and 25(1) b and section 38 c of the Office of the Superintendent of Financial Institutions Act d, hereby makes the annexed Administrative Monetary Penalties (OSFI) Regulations. S.C. 1999, c. 28, s. 131 S.C. 2001, c. 9, s. 476 S.C. 1997, c. 15, s. 339; S.C. 2001, c. 9, s. 477 R.S., c. 18 (3rd Supp.), Part I
Interpretation
In these Regulations, Act means the Office of the Superintendent of Financial Institutions Act.
The short-form descriptions that are set out in column 1 of the schedule form no part of these Regulations and are inserted for convenience of reference only.
Violations
The contravention of a provision of a financial institutions Act that is set out in columns 2 to 5 of an item of the schedule is a violation that may be proceeded with under sections 26 to 37 of the Act.
The non-compliance with any order or direction made, any terms and conditions imposed, any undertaking given or any prudential agreement entered into, under a provision of a financial institutions Act that is set out in columns 2 to 5 of an item of the schedule is a violation that may be proceeded with under sections 26 to 37 of the Act.
Classification
Each violation is classified as a minor, serious or very serious violation, as set out in column 6 of the schedule.
Penalties for Late or Erroneous Filings
Subject to subsection (2), the penalty in respect of a violation that is classified as minor under any of items 10, 19, 23, 24, 31, 32, 34 to 36, 60, 61, 63 and 69 to 71 of the schedule is
if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets less than or equal to $250 million, $100;
if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets greater than $250 million but less than or equal to $10 billion, $250; and
if the violation is committed by a financial institution, bank holding company or insurance holding company that has total assets greater than $10 billion, $500.
If a minor violation referred to in subsection (1) committed by a financial institution, bank holding company or insurance holding company is continued on more than one day, the penalty in respect of each of the separate violations that, because of section 35 of the Act, result from that continuation shall be the lesser of the penalty fixed under that subsection and the amount determined by dividing $25,000 by the total number of those separate violations.
Repeal
[Repeal]
Coming into Force
These Regulations come into force on the day on which they are registered.
Item Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Short-form Description of Violation Provisions of the Bank Act Provisions of the Cooperative Credit Associations Act Provisions of the Insurance Companies Act Provisions of the Trust and Loan Companies Act Classification of Violation 1 Failure to obtain approval of Superintendent for carrying on business 48(1) and 534(2) 56(1) 52(1) 52(1) Very serious 2 Failure to obtain approval of Superintendent for the insuring in Canada of risks N/A N/A 573(1) N/A Very serious 3 Failure to comply with conditions or limitations on an order approving the commencement and carrying on of business 53, 54 and 534(5) and (6) 61 and 62 58(2), 59 and 657(3) and (4) 57(4) and 58 Very serious 4 Failure to comply with conditions or limitations on an order approving the insuring in Canada of risks N/A N/A 581(2) and 586(1) N/A Very serious 5 Failure to obtain approval of Superintendent for issuing shares paid for in property 65(1) and 709(1) 74(1) 69(1) and 748(1) 68(1) Serious 6 Holding of own shares 70 and 714 78 74 and 753 73 Serious 7 Failure to notify Superintendent of declaration of dividend on time 79(2) and 722(2) 86(2) 83(2) and 761(2) 82(2) Minor 8[Repealed, SOR/2020-68, s. 1] 9 Failure to obtain approval of Superintendent for issuing subordinated debt paid for in property 80(1) and 723(1) 87(1) 84(1) and 762(1) 83(1) Serious 10 Failure to file with Superintendent proxy circular, notice of meeting, form of proxy or other documents on time 156.05(2)(a) (with modifications required, as the case may be, under section 746) 166.05(2)(a) 164.04(2)(a) and 789(2)(a) 160.05(2)(a) Minor 11 Failure to establish audit committee 157(2)(a) and 747(2)(a) 167(2)(a) 165(2)(a) and 794(2)(a) 161(2)(a) Very serious 12 Failure to establish conduct review committee 157(2)(b) 167(2)(b) 165(2)(b) and 660(1)(c) 161(2)(b) Very serious 13 Failure to establish procedures to resolve conflicts of interest 157(2)(c) and 747(2)(b) 167(2)(c) 165(2)(c) and 794(2)(b) 161(2)(c) Very serious 14 Failure to designate committee to monitor procedures to resolve conflicts of interest 157(2)(d) and 747(2)(c) 167(2)(d) 165(2)(d) and 794(2)(c) 161(2)(d) Very serious 15 Failure to establish investment or lending policies, standards or procedures 157(2)(g), 465, 581, 747(2)(d) and 927 167(2)(e) and 387 165(2)(h), 492, 551, 615(1), 794(2)(d) and 968 161(2)(g) and 450 Very serious 16 Failure to comply with board composition requirements 159, 160, 163(1), 164, 749, 750 and 752 169, 170 and 171 167, 168(1) and (2), 171(1), 172, 796, 797 and 799 163, 164, 167(1) and 168 Serious 17 Failure to comply with requirements in respect of self-dealing 195(3) 200(3) 204(3) and 660(2) 199(3) Very serious 18 Failure to report to Superintendent on mandate or responsibilities of conduct review committee or on procedures for complying with self-dealing regime 195(4) 200(4) 204(4) and 660(3) 199(4) Minor 19 Failure to report to Superintendent on time on activities of conduct review committee 195(6) 200(6) 204(6) and 660(5) 199(6) Minor 20 Failure to appoint chief executive officer, principal officer or chief agent 196(1) and 536(1) N/A 205 and 579(3) 200(1) Serious 21 Failure by director or officer to disclose conflict of interest 202 and 789 206 211 and 836 207 Very serious 22 Failure by director to abstain from being present at meeting or from voting 203(1) and 790(1) 207(1) 212(1) and 837(1) 208(1) Very serious 23 Failure to notify Superintendent on time of change of address of the head office or principal office 237(3), 535(3) and 814(3) 234(3) 260(3), 544(2.2) and 868(3) 242(3) Minor 24 Failure to file with Superintendent a power of attorney appointing new chief agent or containing new address of the chief agency forthwith after the change N/A N/A 587 N/A Minor 25 Failure to prepare or maintain records 238, 597(1) and 815 235 261, 647(1), 662 and 869 243 Very serious 26 Failure to notify Superintendent of place of records 239(2), 597(3) and 816(2) 236(2) 262(2) and 870(2) 244(2) Minor 27 Failure to take precautions to protect records 244 (with modifications required, as the case may be, under section 598) and 821 241 267 (with modifications required, as the case may be, under section 649) and 875 249 Very serious 28[Repealed, SOR/2020-68, s. 2] 29[Repealed, SOR/2020-68, s. 2] 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) 242(5) 268(2) (with modifications required, as the case may be, under section 649) and 876(2) 250(2) Very serious 31 Failure to send to Superintendent copy of annual financial statement, auditor’s report, actuary’s report, annual return or other material on time 312 and 844 296 335, 667(2) and 891 317 Minor 32 Failure to notify Superintendent without delay of designation of member of firm of accountants who will conduct audit 315(3) and (4), 585(4) and (5) and 847(3) and (4) 299(3) and (4) 338(3) and (4) (with modifications required, as the case may be, under subsection 547(1)), 634(3) and (4) and 894(3) and (4) 320(3) and (4) Minor 33 Failure to fill auditor vacancy forthwith 319(1) and 851(1) 303(1) 342(1) and 638(1) 324(1) Minor 34 Failure to notify Superintendent of the appointment of an actuary forthwith after appointment N/A N/A 357 and 623(2) N/A Minor 35 Failure to notify Superintendent of the revocation of the appointment of the actuary forthwith after revocation N/A N/A 360(2) and 625(2) N/A Minor 36 Failure to notify Superintendent of a vacancy in the office of the actuary forthwith after vacancy N/A N/A 362 and 626(3) N/A Minor 37 Insuring of risk not within a class of insurance specified in order N/A N/A 443(1) and 573(2) N/A Very serious 38[Repealed, SOR/2020-68, s. 5] 39 Failure to comply within the specified time with an order of the Superintendent to amend policies 419(3) 383(3) 470(3) and 542.07(3) 419(3) Very serious 40 Failure to comply with restriction on partnerships 421(1), 553.1(1) and 924(1) 385(1) 472(1), 542.09 and 964(1) 421(1) Serious 41 Entering into a transaction resulting in aggregate debt obligations and stated capital in excess of limit N/A N/A 473(1), 476 and 542.1(1) N/A Very serious 42 Failure to obtain approval of Superintendent for giving up control of an entity 468(11) and 930(11) 390(10) 495(12) and 971(10) 453(10) Serious 43 Failure to cease to control entity or dispose of substantial investment acquired or increased by way of temporary investment within divestiture period 471(1) and (2) and 933(1) 393(1) and (2) 498(1) and (2), 557(1) and (2) and 974(1) 456(1) and (2) Serious 44 Failure to cease to control entity or dispose of substantial investment acquired by way of loan default within divestiture period 472(2) and (3) and 934(2) 394(2) and (3) 499(2) and (3) and 558(2) and (3) and 975(2) 457(2) and (3) Serious 45 Failure to cease to control entity or dispose of substantial investment acquired by way of realization within divestiture period 473(2) and (3) and 935(2) 395(2) and (3) 500(2) and (3), 559(2) and (3) and 976(2) 458(2) and (3) Serious 46 Failure to obtain approval of Superintendent for acquiring or disposing of assets in excess of 10% of total assets 482(1) and 944(1) 406(1) 512(1), 569(1) and 987(1) 470(1) Serious 47 Holding of consumer and commercial loans in excess of limit N/A 398 and 399 503, 504, 505, 562, 616 and 617 461 and 462 Very serious 48 Holding of interest in real property in excess of limit 476 and 938 401 506, 563, 618 and 981 464 Very serious 49 Holding of equity in excess of limits 477 and 939 402 507, 565, 619 and 982 465 Very serious 50 Holding of interest in real property and equity in excess of aggregate limit 478 and 940 N/A 508, 566, 620 and 983 466 Very serious 51 Failure to comply with a divestment order 480 and 942 404 510, 567 and 985 468 Very serious 52 Failure to comply with an order to increase capital, provide additional liquidity, increase assets or maintain or deposit assets in Canada 485(4), 617 and 949(4) 409(4) 515(4), 608(5), 609(3) and 992(4) 473(4) Very serious 53 Entering into a prohibited related party transaction 489(1) 413(1) 521(1) and 621 477(1) Very serious 54 Failure to obtain approval of Superintendent to be reinsured by a related party N/A N/A 523(2) and 597(1) N/A Very serious 55 Entering into a related party transaction in excess of limits 495.2, 495.3, 496(2) and 497 420(2) and 421 528.2, 528.3, 529(2) and 530 483.2, 483.3, 484(2) and 485 Very serious 56 Failure to obtain full disclosure from a party believed to be a related party 504(1) 428(1) 537(1) 492(1) Very serious 57 Failure to notify Superintendent of a prohibited or non-approved related party transaction 505 429 538 493 Very serious 58 Carrying on activities prohibited to a foreign bank or entity associated with a foreign bank 510 N/A N/A N/A Very serious 59 Failure to provide Superintendent with financial statements or other information on time 522.27 N/A N/A N/A Minor 60 Failure to submit copy of power of attorney to Superintendent without delay 536(2) and (3) N/A N/A N/A Minor 61 Failure to notify Superintendent of the appointment of the auditor without delay 585(1) N/A 633(2) N/A Minor 62 Failure to keep records at chief agency N/A N/A 647(3) N/A Serious 63 Failure to provide Superintendent with required information at the time or in the form specified 600, 628 and 950 431 664 and 993 495 Minor, if the violation relates to information required as part of periodic reports Serious, in any other case 64 Failure to comply with an order for the production of information 605, 635 and 954 N/A 671 and 997 502 Very serious 65 Failure to provide information required by Superintendent in relation to an examination 613(2), 643(2) and 957(2) 437(2) 674(3) and 1000(2) 505(2) Serious 66 Failure to comply with prudential agreement 614.1, 644.1 and 959 438.1 675.1 and 1002 506.1 Very serious 67 Failure to comply with direction of compliance 615(1) and (3), 645(1) and (3) and 960(1) and (3) 439(1) and (3) 676(1) and (3) and 1003(1) and (3) 507(1) and (3) Very serious 68 Failure to provide Superintendent with information relating to appointment of directors or officers on time 617.1(3), 647(3) and 963(3) 441.1(3) 678.1(3), 678.3(3) and 1006(3) 509.1(3) Very serious 69 Failure to provide Superintendent with information on directors and auditors on time 632(1) and 951(1) 432(1) 549(1), 661(2), 668(1) and 994(1) 499(1) Minor 70 Failure to provide Superintendent with changes to information on directors and auditors forthwith after the changes 632(2) and 951(2) 432(2) 549(2), 661(3), 668(2) and 994(2) 499(2) Minor 71 Failure to send to Superintendent copy of by-laws on time 633 and 952 632(2) and 951(2) 548(3), 661(1)(a), 669 and 995 500 Minor 72 Failure to comply with terms, conditions or undertakings relating to approval of Superintendent 973.02(2) 459.2(3) 1016.2(2) 527.4(2) Very serious