Interpretation

1  In this regulation:

"Act" means the Financial Institutions Act;

"financial institution" includes

(a) an extraprovincial corporation,

(b) a society that is deemed under section 191 of the Act to have a business authorization, and

(c) a mutual fire insurance company as defined in section 188 of the Act.

 Exception to tied selling prohibition

2  For the purpose of section 94 of the Act, the conduct described in that section and commonly called tied selling is permitted only in the following circumstances:

(a) the transaction is one under which the provision of a service or a product can be facilitated by a person maintaining an account with the financial institution;

(b) the only additional or other business required as a condition of the transaction referred to in paragraph (a) is that the person who receives the product or service must maintain an account with the financial institution for the purpose of making or receiving scheduled payments and associated costs.

 Additional disclosure to customers — s. 90 (1) of the Act

3  (1)  For the purpose of section 90 (1) (d) of the Act, there are no other particulars that must be disclosed to the customer in writing by the financial institution.

(2)  For the purpose of section 90 (1) (d) of the Act, the other particulars that must be disclosed to the customer in writing by the person described in section 90 (1) (b) of the Act are the particulars of

(a) the relationship between the person and the financial institution,

(b) the nature and extent of any business or financial interest that

(i)  the person has in the financial institution, and

(ii)  the financial institution has in the person,

(c) the nature and extent of whatever interest, if any, the person has in the transaction, including, but not limited to, whether the person has the right to receive a commission or other remuneration in respect of the transaction,

(d) where a commission or other remuneration is payable, the identity of the person paying it, and

(e) the prohibition against tied selling described in section 94 of the Act.

(3)  Subsection (2) does not apply to the person described in section 90 (1) (b) of the Act if

(a) the person is licensed under the Act as an insurance agent or insurance salesperson,

(b) the transaction is one in a series of continuing similar transactions between the same customer and the same insurance company or extraprovincial insurance corporation,

(c) in respect of the first transaction in the series of transactions described in paragraph (b), the person has made the disclosure required under subsection (2) to that customer, and

(d) the particulars that were disclosed in respect of the first transaction are the same particulars which, if it were not for this subsection, the person would be required to disclose under subsection (2) to that customer.

[am. B.C. Reg. 180/92, s. 1.]

 Additional disclosure to customers — s. 90 (2) of the Act

4  (1)  For the purpose of section 90 (2) (d) of the Act, the other particulars that must be disclosed to the customer in writing by a financial institution that arranges a transaction described in section 90 of the Act are the particulars of

(a) the relationship between the financial institution and the third party described in section 90 (2) of the Act,

(b) the nature and extent of any business or financial interest that

(i)  the financial institution has in the third party described in section 90 (2) of the Act, and

(ii)  the third party described in section 90 (2) of the Act has in the financial institution,

(c) the nature and extent of whatever interest, if any, the financial institution has in the transaction, including, but not limited to, whether the financial institution has any right to receive a commission or other remuneration in respect of the transaction,

(d) where a commission or other remuneration is payable, the identity of the person paying it, and

(e) the prohibition against tied selling described in section 94 of the Act.

(2)  For the purpose of section 90 (2) (d) of the Act, the other particulars that must be disclosed to the customer in writing by the person described in section 90 (2) (b) of the Act who arranges a transaction described in section 90 (2) of the Act are the particulars of

(a) the relationship between the person described in section 90 (2) (b) of the Act and

(i)  the financial institution, and

(ii)  the third party described in section 90 (2) of the Act,

(b) the nature and extent of any business or financial interest that

(i)  the person described in section 90 (2) (b) of the Act has in the financial institution and the third party,

(ii)  the financial institution has in the person described in section 90 (2) (b) of the Act, and

(iii)  the third party has in the person described in section 90 (2) (b) of the Act,

(c) the nature and extent of whatever interest, if any, the person described in section 90 (2) (b) of the Act has in the transaction, including, but not limited to, whether the person has the right to receive a commission or other remuneration in respect of the transaction,

(d) where a commission or other remuneration is payable, the identity of the person paying it, and

(e) the prohibition against tied selling described in section 94 of the Act.

[am. B.C. Reg. 180/92, s. 2.]

 Guaranteed investment certificates, etc.

5  Section 89 of the Act does not apply to the use by a savings institution of the word "guaranteed" to describe an investment or deposit if

(a) the investment or deposit is one commonly referred to by savings institutions

(i)  as a "guaranteed investment certificate",

(ii)  as a "guaranteed investment receipt",

(iii)  as a "guaranteed investment fund", or

(iv)  by an abbreviated form of any of those expressions,

(b) the investment or deposit

(i)  is for a term exceeding 5 years and, for that reason only, is not insured by the Canada Deposit Insurance Corporation,

(ii)  is not in Canadian currency and, for that reason only, is not insured by the Canada Deposit Insurance Corporation, or

(iii)  is not in Canadian currency and has a term exceeding 5 years and, for those 2 reasons only, is not insured by the Canada Deposit Insurance Corporation,

(c) the savings institution does not represent or imply that the investment or deposit is guaranteed by any third party guarantor, and

(d) the investment or deposit instrument conspicuously states on its face that it is not guaranteed by any third party guarantor.