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This Act is current to April 24, 2024
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Financial Institutions Act

[RSBC 1996] CHAPTER 141

Part 1 — Interpretation and Application
1Definitions and interpretation
2Application of Business Corporations Act
8Pre-existing trust company
10.1Specific rules respecting Business Corporations Act application to extraprovincial corporations
11This Act paramount
Part 2 — Incorporation, Significant Changes and Winding Up
Division 1 — Names
12Names for trust companies and insurance companies
12.1False representation prohibited
Division 1.1 — Formation of Trust Companies and Insurance Companies
13Consent required for incorporation
14Preliminary activities
Division 1.2 — Alteration of Charter of Trust Companies and Insurance Companies
15Consent required for alteration of memorandum, notice of articles or articles
Division 1.3 — Conversion of Special Act Insurance Companies
16Consent required for conversion of special Act insurance company
17Continuation of business authorization on conversion of special Act insurance company
Division 1.4 — Continuation of Trust Companies and Insurance Companies
18Consent required for continuation of extraprovincial trust corporation or extraprovincial insurance corporation into British Columbia
19Consent required for continuation of trust company or insurance company out of British Columbia
Division 1.5 — Amalgamation of Trust Companies and Insurance Companies
20Consent required for amalgamation of trust company or insurance company
Division 1.6 — Arrangements, Acquisitions or Dispositions by Trust Companies and Insurance Companies
21Consent of Authority to arrangement, acquisition or disposition
Division 1.7 — Background for Consents
22Consent required for continuation or amalgamation
23Superintendent may obtain information to support consent considerations
Division 2 — Dissolution and Winding Up of Trust Companies and Insurance Companies
24Notice to superintendent required on voluntary dissolution or winding up
25Winding up by Supreme Court order — superintendent is party
25.1Liquidation and dissolution by court order
26Liquidation and dissolution on direction of Authority
27Application of this Part
28Duties of liquidators on Authority-ordered liquidation and dissolution
29Deferral of dissolution
30Publication of notice
31Filing quarterly statements and producing records
32Examination of trust and insurance companies being liquidated and dissolved
33Information required on restoration applications
33.1Provisional liquidator
Division 3 — Special Provisions Respecting Insurance Companies Ceasing Business or Winding Up
41Provisions for subsisting contracts of insurance
42Reinsurance arranged by liquidator
43Rights of the insured on reinsurance
44Termination if reinsurance is not arranged
45Liquidator's duty to give notice
46Provision for payment of losses, preferred claims and unearned premiums
47Endowment and life funds distributed
Division 4 — Ownership of Trust and Insurance Companies
48Definitions and interpretation for Division
49Determination of base level ownership percentage
50Share acquisition restrictions
51Grounds for refusal of consent to major share acquisition
52Reporting requirement
53Shares acquired in contravention of section 50 not registrable
54Prohibition on dividends
55No voting rights if excess shareholdings
56Validity of transfer of voting shares
57Directors' bylaws — members' declarations
58Superintendent may require declaration of share ownership
Part 3 — Business Authorization and Business
Division 1 — Business Authorization of Financial Institution
59Commencement of business
60Business authorizations for corporations now in business
61Application for business authorization
62Conditions on business authorization
63Certificate of business authorization
64Voluntary revocation of business authorization
Division 2 — Operation of Financial Institutions
65Authorized business
66Membership in insurance plan
67Capital and liquidity of financial institutions
69Restriction on right to appoint receiver
Division 3 — Trust Business
70Unauthorized trust business by corporations prohibited
72Common trust funds authorized
73Extent of liability
74Execution of trusts
Division 4 — Insurance Business
74.1Mutual company definition
75Unauthorized insurance business prohibited
79Rebates of premiums prohibited
80Separation of class funds of insurance company
80.1Coverage by property insurer
80.2Obligation of insurer with respect to agent's commission
80.3Insurer — complaint resolution
Division 5 — Deposits and Borrowing of Trust Companies and Credit Unions
81Unauthorized deposit business prohibited
82Deposits in credit unions
83Deposits from persons unable to contract
84Disposition of deposits
85Inactive deposits
86Limitation on lending
87Subordinated notes
Division 6 — Marketing of Financial Products
91Disclosure of identity in advertising, etc
92Insurers to file policy forms
92.1Requirements of out of province insurers
92.2Online sale of insurance
93Prohibition against unfair, misleading or deceptive documents
94Coercive tied selling prohibited
94.1Insurance company — code of market conduct
94.2Credit union — code of market conduct
94.3Credit union — complaint resolution
96Substitute action of superintendent
Part 4 — Corporate Governance
Division 1 — Directors and Officers of Financial Institutions
97Number of directors and unaffiliated directors
98.1Cumulative voting for directors
99Removal of directors and officers
100Credit union directors ceasing to hold office
101Standard of care for directors and officers
101.1Director's application to Supreme Court — superintendent is party
102Indemnification of directors and officers
103Quorum and unaffiliated directors
104Misuse of confidential information
105Information required of directors and senior officers
106Meeting requested by auditor
107Meeting requested by superintendent
108Director's statement on own resignation or pending removal
109Circulation of director's statement
110Directors' remuneration
112Conduct review committee
Division 2 — Auditors and Audit Committees of Financial Institutions
114Auditor may be a depositor
115Audit committee and unaffiliated directors
116Auditor has right to attend directors' meetings
117Appointment and removal of auditor
118Report to accounting body
119Resignation of auditor
120Auditor appointment for subsidiary
121Amendment of financial statements and auditor's report
123Report to directors
124Additional reporting
125Additional auditor
126No liability
Division 2.1 — Actuaries — Insurance Companies
126.12Notice of appointment
126.13Designated individual
126.14Qualifications of actuary
126.15Senior officers precluded
126.16Revocation of actuary's appointment
126.17Declaration of vacancy by court
126.18Ceasing to hold office
126.19Filling vacancy
126.2Statement of actuary
126.21Duty of replacement actuary
126.22Right to information
126.23Actuary's valuation
126.24Special valuation
126.25Notice of meeting to actuary
126.26Actuary's report
126.27Report to directors
126.28Report on matters requiring rectification
126.29Actuary's procedures
126.3Qualified privilege
126.31No liability
Division 3 — Books, Records, Returns and Financial Statements of Financial Institutions
128Financial statements
129Accounting principles
130Public access to financial information
131Financial year end
132Records filed with registrar
133Location of records
Division 4 — Investments and Lending of Financial Institutions
135Investment and loan committee
136Investment and loan standards
137Superintendent's powers over investment and lending policy
138Compliance with investment and lending limits
139Credit unions not permitted to invest in other credit unions
139.1Credit unions require consent for prescribed transactions
140Other authorized loans, investments and activities of subsidiaries
141Investment in a corporation
142Other authorized investments
143Disposal of investments
143.1Loans and guarantees prohibited
143.2Financial assistance restricted
143.3Contract enforceable
Part 5 — Related Parties
144Interpretation and designation of related parties
145When related party transactions are permitted
146Conduct review committee's power to approve other transactions
147When superintendent may consent to related party transactions
148Restrictions on self dealing as a fiduciary
149Disclosure by related parties
150Voidable transactions
151Derivative action
152Liability arising from related party transactions
153Burden of proof
154Reporting by auditor
Part 6 — Regulation of Other Persons
Division 1 — Extraprovincial Corporations
157Definition of "primary jurisdiction"
158Application of this Division
159Authorized business
160Business authorization for extraprovincial trust or insurance corporation
160.1Business authorization for extraprovincial credit union
164Requirement for notice of regulatory action outside British Columbia
165Examination of extraprovincial corporations
166Amalgamation of extraprovincial corporations
167Notice of ceasing business
Division 2 — Insurance Agents and Adjusters
168Definitions for Division
169Exercise of rights under licence
171Prohibition of unlicensed agents and salespersons
174Issue of licences
176Insurance applications to be accepted only from holders of licences
177Selling offences
178Payment of commission to unlicensed agents prohibited
179Persons who may negotiate settlement of personal injury claim
180Prohibition of unlicensed adjusters
Division 3 — Reciprocal Exchanges for Insurance
187Permit for reciprocal insurance
Division 4 — Mutual Fire Insurance Companies
Division 5 — Societies Engaged in Insurance
190Definition of society
191Deemed business authorization for certain existing societies
192Provisions applicable
193Certain other existing societies exempt
194When society not entitled to receive business authorization
195Actuarial certificates
196Limit of insurance money payable
197Amendment of charter
197.1Consent required for alteration to constitution or bylaws or for amalgamation of authorized society
198Society operating outside British Columbia
200Provisions applicable to certain societies
Part 7 — Administration of the Regulation of Financial Institutions
Division 1 — BC Financial Services Authority
201BC Financial Services Authority
201.1Rules of the Authority
201.2Procedures for rules
201.3Regulation prevails over rule
206Requirement to insure
207Superintendent of Financial Institutions
208Power to require undertakings and make agreements
209Capacity outside British Columbia
210Examinations, audits, inspections
211Superintendent may require information
211.1Requirement for notice of action outside British Columbia
Division 1.1 — Special Examinations and Investigations
214Special examination
215.1Extrajurisdictional evidence
215.2Extrajurisdictional request for evidence
216Witnesses in a special examination or investigation
216.1Powers of entry
216.2Warrant to enter residence
216.3Powers on inspection
216.4Certified copies of records as evidence
216.5Obstructing or interfering with inspection
216.6Immunities on special examination or investigation
Division 1.2 — Information and Records
217Extension of time
218Confidential information
218.1Privileged information — supervisory information
218.2Privileged information — self-evaluative compliance audits
219Agreements with other jurisdictions
219.01Agreement with other authorities and market conduct database administrator
219.1Collecting and sharing information respecting financial institutions
Division 2 — Insurance Council of British Columbia
220Establishment of the Insurance Council of British Columbia
222Executive director
225.1Rules of council
225.2Procedures for and availability of rules
225.3Regulation prevails over council rule
226Administrative policies
227Duties of council
230Effect of a transfer of powers to superintendent
231Council may suspend, cancel or restrict licences and impose fines
232.1Witnesses on an investigation
232.2Powers of entry
232.3Warrant to enter residence
232.4Powers on investigation
232.5Certified copies of records as evidence
232.6Obstructing or interfering with investigation
Division 3 — Hearings and Appeals
235Orders, consents and refusals to be in writing
236Power to impose conditions
237Hearing requirements
238Summary procedure — superintendent or council
238.1Summary procedure — superintendent or Authority
239Public hearing
240Witnesses at hearings
241Costs of investigation
241.1Assessment of costs
242Appeal from a decision of the superintendent or council
242.1Financial Services Tribunal
242.2Practice and procedure
242.3Judicial review
242.4Appeal from a decision of the Authority
243Personal liability protection
Part 8 — Sanctions
Division 1 — General Sanctions
244Authority's order to cease or remedy
245Order to freeze property
246Order for compliance
247Valuation of assets and insurance contracts
248Supervision of central credit union
249Revocation of business authorization
250Notice of revocation of business authorization
251Court order to appoint receiver, etc.
Division 2 — Offences and Penalties
253.1Administrative penalties
253.2Limitation on proceedings
253.3Failure to pay administrative penalty
254Remedies preserved
255Limitation period
256Court order to comply
258Innocent third parties
259Remedy of irregularities
Part 9 — Deposit Insurance and Stabilization of Credit Unions
260Definitions and interpretation for Part
Division 1 — Credit Union Deposit Insurance Corporation of British Columbia
261Credit Union Deposit Insurance Corporation of British Columbia
262General powers of the deposit insurance corporation
263Accounting records
264Appointment of auditor
265Auditor's report
Division 2 — Deposit Insurance
266Guarantee of credit union deposits
268Contributions to fund
269Issue of debentures
270Redemption of debentures
271Fund impaired
272Investment by deposit insurance corporation
273Acts not applicable
274Fund protection symbol
Division 3 — Stabilization
275Supervision of credit union
276Duration of supervision
277Orders in relation to credit union that is subject to supervision
277.1Additional circumstances in which section 277 (2) orders may be made
277.2Assistance to administrator in relation to section 277 (2) orders
278Administrator's powers
280Financial assistance
Division 4 — Stabilization Authority
281Stabilization authority defined
283Mandatory membership
284Revocation of stabilization authority status and delegated powers
285Superintendent may delegate to stabilization authority
287Advance from fund to stabilization authority
288Annual report of stabilization authority
Part 10 — Regulations and Transition
Division 1 — Regulations
290Transfer of disciplinary powers
Division 2 — Transitional Provisions
291Validity of loans
292Validity of credit union amalgamations before June 25, 1975
293Variation of agreements
Part 11 — Review of Act
294Review of Act