SOR/2018-5820183

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BANK ACTBank Recapitalization (Bail-in) Issuance RegulationsP.C.2018-33720183

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Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 485(2)a, section 485.01b and subsection 978(1)c of the Bank Actd, makes the annexed Bank Recapitalization (Bail-in) Issuance Regulations.aS.C. 2016, c. 7, s. 160(1)bS.C. 2016, c. 7, s. 161cS.C. 2010, c. 12, s. 2092dS.C. 1991, c. 46Shares and Liabilities

Prescribed shares and liabilities1For 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 liability2A domestic systemically important bank must ensure that a prescribed liability issued by the bank includes terms that provide for each of the following:(a)the holder of the liability is bound, in respect of that liability, by the Canada Deposit Insurance Corporation Act, including the conversion of the liability into common shares under subsection 39.2(2.3) of that Act and the variation or extinguishment of the liability in consequence, and by the application of the laws of Canada or of a province in respect of the operation of that Act with respect to that liability;(b)the holder of the liability attorns to the jurisdiction of courts in Canada with respect to that Act and those laws; and(c)the terms referred to in paragraphs (a) and (b) are binding on the holder of the liability despite any other terms of the liability, any other law that governs the liability and any other agreement, arrangement or understanding between the parties with respect to the liability.

Prescribed share3A 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.

Disclosure4A 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 — prohibition5A 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*6These Regulations come into force on the 180th day after the day on which they are registered.*[Note: Regulations in force September 23, 2018.]