Interpretation

Marginal note:Definition of “Act”

1 In these Regulations, Act means the Bank Act.

Exemptions

Marginal note:Exempt distributions

2 Sections 273, 274 and 276 to 282 of the Act do not apply in respect of a distribution

• (a) outside Canada or to persons residing outside Canada;

• (b) that consists solely of trades made between a bank holding company, or a person or group of persons referred to in paragraph 273(3)(b) of the Act, and not more than 25 persons, if the trades result in not more than 25 persons being beneficial owners of the securities so traded;

• (c) that consists of a trade or trades made in the course of

  • (i) a transaction under which a bank holding company acquires ownership of the assets of an entity that in turn ceases to exist, or

  • (ii) an amalgamation by a bank holding company with one or more other bodies corporate;

• (d) that is in the form of

  • (i) a share issued as a share dividend,

  • (ii) shares issued to shareholders of a bank holding company as a result of the exercise of a pre-emptive right referred to in section 712 of the Act,

  • (iii) shares issued to shareholders of a bank holding company as a result of the exercise of a right to purchase additional shares of the bank holding company,

  • (iv) shares issued as a result of the exercise of options or rights granted to directors, officers or employees of a bank holding company, or

  • (v) any other securities transferred or issued as a result of the exercise by a person of a right to purchase, convert or exchange shares;

• (e) in respect of which no prospectus is required to be filed under the laws of, or under a policy or practice in effect in, the province in which the distribution is to be made; or

• (f) that is made in accordance with a short-form prospectus system under the laws of, or under a policy or practice in effect in, the province in which the distribution is to be made.

Marginal note:Information

3 When a bank holding company or other person applies to the Superintendent under section 276 of the Act for the exemption of a proposed distribution from the application of sections 273, 274 and 277 to 282 of the Act, the bank holding company or other person must send the Superintendent a copy of all information that is required to be provided to the authority charged with the administration of the laws, policy or practice regarding distributions in the jurisdiction in which the distribution is to be made.

Coming into Force

Marginal note:Coming into force

Footnote ^*4. These Regulations come into force on the day on which section 835 of the Bank Act, as enacted by section 183 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.

• Return to footnote ^*[Note: Regulations in force October 24, 2001, see SI/2001-102.]