Canada: Quebec Introduces Much Anticipated Bill 141 To Revise Framework For Quebec Financial Sector

On October 5, 2017, Quebec's Minister of Finance Carlos Leitão (Minister) introduced Bill 141, An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions (Bill) in the National Assembly, a much anticipated omnibus bill that is meant to improve the framework of Quebec's financial sector and strengthen consumer protection.

The Bill proposes significant and targeted amendments to 14 different laws in order to update and modernize the framework applicable to Quebec's financial sector. It also proposes corresponding amendments to almost 50 other laws.

This bulletin provides a summary of the main legislation impacted and the key points of the Bill. The Blakes Financial Services Regulatory group is currently performing an in-depth analysis of Bill 141 in order to provide insight into the Bill's impact on businesses. Additional information will be made available in the following weeks on specific subject matters covered by the Bill.

BACKGROUND

The Bill follows the public consultation process that the Minister started in June 2015, after he tabled four reports on Quebec's financial sector framework at the National Assembly (the Report on the Application of the Act respecting the distribution of financial products and services; the Report on the Application of the Real Estate Brokerage Act; the Report on the Application of the Derivatives Act; and the Report on the Act respecting the Caisse de dépôt de placement du Québec) (Reports) and invited interested parties to provide comments on the proposals set out in the Reports. Certain proposals, including the proposal to regulate the distribution of insurance products over the internet and eliminate the Chambre de la sécurité financière and the Chambre de l'assurance de dommages (collectively the Chambres), generated strong reactions from industry stakeholders — the Minister received close to 400 briefs during the consultation process.

The Bill was expected to be introduced by the legislative 2016 calendar's year-end, but was delayed by the general strike of the Quebec government lawyers and notaries. At the end of the spring's parliamentary session, the Minister indicated that the Bill would be introduced early in fall 2017.

FINANCIAL SECTOR LEGISLATIVE REFORM

The Bill proposes to replace the Act respecting insurance with the Insurers Act and the Act respecting trust companies and savings companies with the Trust Companies and Savings Companies Act. Once the Bill is passed, the proposed Insurers Act will govern the supervision and control of insurance business and the activities of licensed insurers in Quebec. The legislation governing trust and loan companies, which has been renamed Trust Companies and Savings Companies Act, has been entirely redrafted to be better harmonized and aligned with the proposed amendments set out in the new Insurers Act.

The Bill further proposes substantial amendments to the Act respecting financial services cooperatives and the Deposit Insurance Act (renamed the Deposit Institutions and Deposit Protection Act). The Act respecting financial services cooperatives is amended to, among other things, specify the rules for organizing a network of financial services cooperatives and those for the issuance of their capital shares and investment shares; provide for the continuation of financial services cooperative constituted under the laws of another jurisdiction under the Act; grant federations special powers regarding member credit unions' activities; and add a chapter on the Groupe coopératif Desjardins, which will replace the Act respecting the Mouvement Desjardins. The proposed amendments to the deposit insurance legislation include a proposal to govern the supervision and control of deposit-taking business and the activities of licensed deposit-taking institutions in Quebec.

INDUSTRY TARGETED MEASURES AND REQUIREMENTS

The Bill includes amendments to the following legislations: the Civil Code of Quebec, the Automobile Insurance Act, an Act respecting the Autorité des marchés financiers (renamed Act respecting the regulation of the financial sector), the Professional Code, the Real Estate Brokerage Act, the Act respecting the distribution of financial products and services, the Money-Services Businesses Act, the Derivatives Act and the Securities Act.

The amendments that have attracted the most media coverage since the Reports were initially tabled by the Minister are those that propose:

  • To allow and provide a framework for the direct distribution of insurance products over the internet by licensed insurers (Insurers Act and Act respecting the distribution of financial products and services); and
  • To eliminate and transfer the responsibilities of certain self-regulating bodies (i.e., the Chambres) that currently have jurisdiction over the professional conduct, discipline and continuing legal education of licensed representatives that distribute various types of financial products (insurance, mutual funds and scholarship plans) and provide financial planning services in Quebec over to the Autorité des marchés financiers (AMF) (Act respecting the distribution of financial products and services).

In addition to the transfer of jurisdictions from the Chambres to the AMF, there are also amendments that are meant to clarify and consolidate the AMF's role as the sole regulator of Quebec's financial services industry. These amendments propose:

  • To define the concept of "real estate contract" to clarify the scope of the Real Estate Brokerage Act and transfer the jurisdiction of the supervision and control of mortgage brokerage from the Organisme d'autoréglementation du courtage immobilier du Québec to the AMF (Real Estate Brokerage Act and Act respecting the distribution of financial products and services)
  • To establish the "Comité consultatif des consommateurs de produits et utilisateurs de services financiers" within the AMF and update the rules applicable to the Financial Markets Administrative Tribunal (Act respecting the regulation of the financial sector).

Finally, other amendments introduce requirements to address new business realities, mostly to improve the protection of Quebec consumers. This set of proposals includes:

  • Requirements to provide an insurer with information regarding an individual's automobile driving experience when applying for, or renewing, automobile insurance coverage (Automobile Insurance Act)
  • The requirement for the AMF to obtain updated security clearance reports from the Quebec police force on each licensed money-services business every three years (Money-Services Businesses Act)
  • The addition of derivatives trading platforms as regulated entities under the Derivatives Act
  • The possibility to distribute funeral insurance policies and the inclusion of requirements specific to this type of insurance product (Civil Code of Quebec and Act respecting prearranged funeral services and sepultures)
  • Additional protections for whistleblowers who disclose breaches of financial sector legislation (Act respecting the regulation of the financial sector)
  • The definition of the role, functions and powers of the board of directors of a professional order and its professional liability insurance decision-making committee regarding the order's insurance business and, if applicable, insurer activities (Professional Code).

TIMELINE FOR IMPLEMENTATION

The government house leader has not yet indicated if Bill 141 will be subject to parliamentary committee review. Considering that there was extensive public consultation prior to the Bill's introduction, the house leader may choose to skip this step of the legislative process and, after the Bill has been passed in respect of its principle, move the Bill directly for adoption (commonly referred to as "third reading") by the National Assembly. The Bill is therefore expected to be adopted in its final form by the end of the 2018 spring parliamentary session, in time before the next election call, which is tentatively scheduled for October 2018.

Once Bill 141 is adopted, stakeholders will need to carefully monitor and watch for the release of various draft regulations to be in a position to prepare and present the Minister with comments. Various regulations will need to be enacted to implement the different measures provided in each of the legislation impacted by the Bill.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
13 Dec 2017, Seminar, Toronto, Canada

Class actions across Canada continue to grow in volume and complexity, triggering significant policy and financial implications for businesses in Canada. With the Law Commission of Ontario’s recent announcement that it is reactivating its comprehensive review of class actions in Ontario, we may see important law reform on the horizon to evolve with the changing landscape.

 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions