On November 23, 2011, the Government of Canada introduced a bill
known as the Financial System Review Act1. The
related announcement of the Department of Finance stated that this
proposed legislation is designed to help ensure the continued
strength and stability of Canada's financial system. Key
highlights of the Financial System Review Act include:
medium and large financial institutions would require the
approval of the Minister of Finance for any foreign control
acquisition that would, in the aggregate with its other foreign
control acquisitions over the preceding 12-month period, exceed 10%
of the institution's total consolidated assets as reported
prior to such 12-month period (under the current legislation only a
prudential review by the Office of the Superintendent of Financial
Institutions is required);
relaxation of certain capital-raising restrictions on Canadian
federal financial institutions by allowing such institutions to
issue shares to foreign government-owned banks and
the widely held ownership threshold for large banks would be
increased from C$8 billion to C$12 billion; and
facilitation of the ability of Canadian regulators to share
information with regulators in foreign jurisdictions.
A copy of the Minister of Finance announcement and
"Backgrounder Paper" can be accessed here: http://www.fin.gc.ca/n11/data/11-120_1-eng.asp.
The Financial System Review Act is a product of the
Government of Canada's required periodic review of the statutes
regulating Canadian federally-regulated financial institutions
(which includes Canadian banks and bank holding companies, foreign
banks, loan and trust companies, insurance companies and
cooperative credit associations). The current review must be
completed by April 2012.
Norton Rose OR LLP is a member of Norton Rose Group, a leading
international legal practice offering a full business law service
to many of the world's pre-eminent financial institutions and
corporations from offices in Europe, Asia Pacific, Canada, Africa
and the Middle East.
The Group's lawyers share industry knowledge and sector
expertise across borders to support clients anywhere in the world.
The Group is strong in financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and pharmaceuticals and life sciences.
Norton Rose Group has more than 2600 lawyers operating from 39
offices in Abu Dhabi, Amsterdam, Athens, Bahrain, Bangkok, Beijing,
Brisbane, Brussels, Calgary, Canberra, Cape Town, Dubai, Durban,
Frankfurt, Hamburg, Hong Kong, Johannesburg, London, Melbourne,
Milan, Montréal, Moscow, Munich, Ottawa, Paris, Perth,
Piraeus, Prague, Québec, Rome, Shanghai, Singapore, Sydney,
Tokyo, Toronto and Warsaw; and from associate offices in Dar es
Salaam, Ho Chi Minh City and Jakarta.
Norton Rose Group comprises Norton Rose LLP, Norton Rose
Australia, Norton Rose OR LLP, Norton Rose South Africa
(incorporated as Deneys Reitz Inc), and their respective
On January 1, 2012, Macleod Dixon merges with Norton
Rose OR, creating a global energy and mining powerhouse within
Norton Rose Group. For more information, please visit
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