On February 26, 2008, the Office of the Superintendent of
Financial Institutions ("OSFI")
published a revised version of its "Guide to Intervention
for Federally Regulated Deposit-Taking Institutions" (the
"Guide") which reflects both changes
in applicable legislation and a much more aggressive and
comprehensive approach to intervention. The Guide outlines, in
great detail, the actions that may be taken by, and remedies
available to, both OSFI and the Canada Deposit Insurance
Corporation ("CDIC"), where they
have determined that intervention in the management and
operation of a deposit-taking institution is appropriate.
The Guide sets out the actions that a deposit-taking
institution can expect OSFI and CDIC to take depending on the
risk level or "stage" assigned to the institution by
OSFI. Some key changes to the Guide are as follows:
at all stages, there are significant increases in the
comprehensiveness and extent of OSFI and CDIC reviews and
there is an increase in the level and extent of
intervention at each stage;
the Minister of Finance will be informed of concerns
regarding a deposit-taking institution at an earlier
CDIC and OSFI will share more information and co-ordinate
their activities to a greater extent; and
CDIC is prepared to turn to the courts for orders
directing member institutions to comply with, or restrain
members from breaching, the Canada Deposit Insurance
Corporation Act, Canada Deposit Insurance Corporation By-laws
or the policy of deposit insurance.
Compliance officers of all member institutions should
carefully review the revised Guide and inform senior officers
and members of their board of directors of OSFI's and
CDIC's apparent willingness to act more quickly and
forcefully in fulfilling their mandates. Our Financial Services
Regulatory Group has prepared a version of the Guide that
identifies changes from the previous version.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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