Bank Recapitalization (Bail-in) Issuance Regulations: SOR/2018-58

Canada Gazette, Part II: Volume 152, Number 8

Registration

March 27, 2018

BANK ACT

P.C. 2018-337 March 26, 2018

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 485(2) footnotea, section 485.01 footnoteb and subsection 978(1) footnotec of the Bank Act footnoted, makes the annexed Bank Recapitalization (Bail-in) Issuance Regulations.

Bank Recapitalization (Bail-in) Issuance Regulations

Shares and Liabilities

Prescribed shares and liabilities

1 For the purposes of subsection 485(1.21) and section 485.01 of the Bank Act, the prescribed shares and liabilities are the shares and liabilities that are prescribed under the Bank Recapitalization (Bail-in) Conversion Regulations.

Terms of Issuance

Prescribed liability

2 A domestic systemically important bank must ensure that a prescribed liability issued by the bank includes terms that provide for each of the following:

Prescribed share

3 A domestic systemically important bank must ensure that the terms attached to a prescribed share issued by the bank provide that the share is subject to conversion into common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

Disclosure

4 A domestic systemically important bank must disclose, in a prospectus, information circular, other offering document or similar document related to a prescribed share or liability, that the share or liability is subject to conversion into common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

Promotion as deposit — prohibition

5 A domestic systemically important bank must not advertise or otherwise promote a prescribed liability, including in its name, to a purchaser in Canada, as a deposit or any variation of that term.

Coming into Force

180th day after registration

6 These Regulations come into force on the 180th day after the day on which they are registered.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2018-57, Bank Recapitalization (Bail-in) Conversion Regulations.