BILL 6 – 2010
FINANCE STATUTES AMENDMENT ACT, 2010

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Financial Administration Act

1 Section 65 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding the following subsection:

(7) Subsections (1) to (4) and (6) of this section do not apply to an uncertificated security as defined in section 65.1 (1).

2 The following section is added:

Uncertificated government securities

65.1  (1) In this section, "uncertificated security" means a security that is not represented by a certificate.

(2) For the purposes of subsection (4), the Lieutenant Governor in Council may designate

(a) one or more persons as certifiers, and

(b) one or more persons as counter-certifiers.

(3) If a designation is made under subsection (2), it may be a designation of a person by the person's name or it may be a designation of a title or office and, if a title or office is designated, the designation applies to every person holding or appointed to that title or office while the person holds that title or office, including in an acting capacity.

(4) The Lieutenant Governor in Council may order that before the government issues an uncertificated security of a type specified in the order during the period of time set out in the order, if any,

(a) a certifier designated under subsection (2) (a) must sign, and

(b) a counter-certifier designated under subsection (2) (b) must countersign

a statement in a form established by the minister certifying that the security is consistent with the terms and conditions of the transaction to which the security relates.

Financial Institutions Act

3 Section 1 (1) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended

(a) in the definition of "depositor" by striking out "trust company," and by adding ", extraprovincial credit union" after "credit union",

(b) by adding the following definition:

"financial services" includes deposit business, insurance business, trust business, trading in securities, mortgage brokerage and real estate services; , and

(c) in the definition of "unaffiliated director" by striking out "or" at the end of paragraph (f), by adding "or" at the end of paragraph (g) and by adding the following paragraph:

(h) unless determined to be an unaffiliated director by the commission under section 97 (2),

(i) an individual,

(ii) a partner in or an employee of a partnership,

(iii) an officer or employee of a corporation, or

(iv) an owner of 10% or more of the voting shares of a corporation

that provides goods or services to the company, if the total annual billing to the company in respect of the goods or services exceeds 10% of the total annual billings of the individual, partnership or corporation, as the case may be; .

4 Section 77 is repealed and the following substituted:

Reserves

77  An insurance company must

(a) establish adequate reserves against the value, as determined by the company's actuary,

(i) under section 126.23 (1) (a), of its actuarial and other policy liabilities, and

(ii) under section 126.23 (1) (b), of any other matter specified in an order made by the commission, and

(b) include those reserves in the liabilities set out in its annual return.

5 Section 78 is amended by striking out everything after "lawful contract".

6 Section 97 is amended

(a) by renumbering the section as section 97 (1), and

(b) by adding the following subsection:

(2) On application by a trust company or an insurance company, if the commission believes, on reasonable grounds, that it is in the public interest, the commission may, for the purposes of subsection (1) and sections 61 (8) (b), 103 (2), 111 (3) and (4), 112 (1), 115 (1) (b) and 135 (c), make a determination that an individual described by paragraph (h) of the definition of "unaffiliated director" is an unaffiliated director, unless that individual is also described in one or more of paragraphs (a) to (g) of that definition.

7 Section 99 (2) is amended by striking out "or" at the end of paragraph (e), by adding "or" at the end of paragraph (f) and by adding the following paragraph:

(g) is an individual who has been

(i) convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or

(ii) found by a regulator or a court in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services, .

8 Section 114 is amended by striking out "trust company or credit union" wherever it appears and substituting "credit union" and by striking out everything after "auditor from" and substituting "the credit union, its affiliates and its directors and officers."

9 Section 115 (3) is repealed and the following substituted:

(3) In addition to the requirements of section 187 (4) of the Company Act as it applies for the purposes of this Act, the audit committee of a financial institution must

(a) review the following documents:

(i) returns of the financial institution that are to be filed with the superintendent under section 127 (1);

(ii) reports that have been made by the auditor under section 123;

(iii) prescribed reports, transactions or matters, and

(b) in the case of an insurance company, meet with the actuary of the company to discuss the parts of the annual financial statements and the annual return prepared by the actuary.

10 Section 121 (2) is amended by striking out "and" at the end of paragraph (a), by adding ", and" at the end of paragraph (b) and by adding the following paragraph:

(c) deliver the amended report, in writing, to the directors and, in the case of an insurance company, the company's actuary.

11 Section 122 (3) is repealed.

12 Section 123 (1) is amended by adding "and, in the case of an insurance company, the company's actuary" after "directors".

13 Section 124 (3) is amended by adding "and, in the case of an insurance company, the company's actuary" after "financial institution".

14 The following Division is added to Part 4:

Division 2.1 — Actuaries — Insurance Companies

Definition

126.1 In this Division, "designated individual" means the individual that is required to be designated under section 126.13.

Actuaries

126.11  The directors of an insurance company must appoint an actuary for the company.

Notice of appointment

126.12  An insurance company must, immediately after the directors appoint a person to be the actuary of the company in accordance with section 126.11, notify the superintendent in writing of the appointment.

Designated individual

126.13 If the actuary of an insurance company is not an individual, the actuary must designate an individual who is responsible for acting on behalf of the actuary.

Qualifications of actuary

126.14  (1) A designated individual or an individual who is the actuary of an insurance company that is authorized to carry on life insurance business must be a fellow in good standing of the Canadian Institute of Actuaries.

(2) A designated individual or an individual who is the actuary of an insurance company that is authorized to carry on one or more classes of general business insurance, but is not authorized to carry on life insurance business, must be a fellow in good standing of the Canadian Institute of Actuaries or be approved by the commission as having the training and experience necessary to perform the duties of an actuary of a provincial company.

Senior officers precluded

126.15  (1) A senior officer of an insurance company may not be appointed as or hold the position of actuary of the insurance company unless authorized in writing by the commission.

(2) An authorization under subsection (1) may contain limitations and conditions, including a limitation on the time during which the person named in the authorization may hold the position of actuary of the insurance company.

(3) If an authorization under subsection (1) includes a time limit as described in subsection (2), the person holding the position of actuary pursuant to the authorization may not hold that position after the time limit expires.

Revocation of actuary's appointment

126.16  (1) The directors of an insurance company may revoke the appointment of the actuary of the company.

(2) The directors of an insurance company must revoke the appointment of its actuary if

(a) the actuary no longer meets the requirements of section 126.14 and does not resign, or

(b) the actuary's designated individual no longer meets the requirements of section 126.14 and the actuary does not replace its designated individual with an individual who does meet the requirements of that section.

(3) The commission may revoke the appointment of an actuary of an insurance company if the commission is satisfied that the actuary or the actuary's designated individual no longer meets the requirements of section 126.14.

Declaration of vacancy by court

126.17 Any interested party may apply to the Supreme Court for an order declaring that an actuary or its designated individual no longer meets the requirements of section 126.14 and that the office of actuary is vacant.

Ceasing to hold office

126.18  (1) The office of actuary of an insurance company becomes vacant when

(a) the actuary resigns,

(b) if the actuary is an individual, the individual dies,

(c) if the actuary is not an individual, the actuary is dissolved,

(d) the appointment of the actuary is revoked, or

(e) the office of actuary is declared to be vacant under section 126.17.

(2) The resignation of an actuary becomes effective at the time a written resignation is delivered to the insurance company or at the time specified in the resignation, whichever is later.

Filling vacancy

126.19 When a vacancy occurs in the office of actuary of an insurance company, the directors must immediately

(a) submit a written statement to the superintendent of the circumstances and the reasons why, in the directors' opinion, the office of actuary became vacant, and

(b) fill the vacancy.

Statement of actuary

126.2  An actuary of an insurance company who resigns or whose appointment is revoked must submit a written statement of the circumstances and reasons why the actuary resigned or why, in the actuary's opinion, the actuary's appointment was revoked, to

(a) the directors of the insurance company,

(b) the superintendent, and

(c) the replacement actuary of the company, when the replacement actuary requests the statement.

Duty of replacement actuary

126.21  (1) Where an actuary of an insurance company resigns or the appointment of an actuary is revoked, a person may not accept an appointment or consent to be appointed as actuary of the insurance company before requesting and receiving from the other actuary the statement referred to in section 126.2.

(2) A person may accept an appointment or consent to be appointed as actuary of an insurance company if no reply is received from the other actuary within 15 days after a request under subsection (1) is made.

(3) Unless subsection (2) applies, an appointment as actuary of an insurance company is void if subsection (1) is contravened.

Right to information

126.22  (1) On the demand of the actuary of an insurance company, a person who is a former actuary of or is or has been a director, officer, employee or agent of the insurance company or any of its subsidiaries or holding companies must, to the best of the person's ability to do so,

(a) furnish all information and explanations to the actuary, and

(b) allow the actuary access to and furnish to the actuary copies of records, documents, books, accounts and vouchers of the insurance company and of any of its subsidiaries or holding companies

as the actuary considers necessary to enable the actuary to perform his or her duties as the company's actuary.

(2) A person who in good faith makes any communication under this section is not liable in a civil action only because of making the communication.

Actuary's valuation

126.23  (1) The actuary of an insurance company must value

(a) the actuarial and other policy liabilities of the company as at the end of a financial year, and

(b) any other matter specified in a direction made by the commission.

(2) The actuary's valuation must be in accordance with generally accepted actuarial practice, with such changes as may be specified in an order by the commission and any additional directions that may be made by the commission.

Special valuation

126.24  (1) The commission may appoint an actuary to value the matters referred to in section 126.23 (1) (a) or (b) if the commission is of the opinion that the appointment is necessary.

(2) The insurance company must pay remuneration to an actuary appointed under subsection (1), at a rate directed by the commission, for carrying out the valuation.

Notice of meeting to actuary

126.25 An insurance company must provide the company's actuary with not less than 21 days' notice of any general meeting of the company, unless the members of the insurance company have waived or reduced the period of notice for the meeting in accordance with section 143 of the Company Act.

Actuary's report

126.26  (1) The actuary of an insurance company must, not less than 21 days before the date of the annual general meeting of the members of the company, make a report to them on the valuation made under section 126.23 and on any other prescribed matter.

(2) In each report required under subsection (1), the actuary must state whether, in the actuary's opinion, the annual financial statement presents fairly the results of the valuation made under section 126.23.

Report to directors

126.27  (1) The directors or, where the directors so choose, the audit committee of the insurance company must meet with the actuary of the company at least once during each financial year.

(2) At the meeting, the actuary must report, in accordance with generally accepted actuarial practice and any change or direction made by the commission under section 126.23,

(a) on the financial position of the insurance company, and

(b) if directed to do so by the commission, the expected future financial condition of the company.

Report on matters requiring rectification

126.28  The actuary of an insurance company must report in writing to

(a) the directors, president and treasurer of the insurance company, and

(b) the superintendent

any matters that have come to the actuary's attention in the course of carrying out the actuary's duties that, in the actuary's opinion,

(c) have material adverse effects on the financial condition of the insurance company, and

(d) require rectification.

Actuary's procedures

126.29  (1) The commission may, in writing, require that the actuary of an insurance company

(a) report to the commission on the actuary's procedures in valuing the actuarially based liability figures contained in the annual return, and

(b) enlarge or extend the scope of that valuation, or perform any other procedure in any particular case,

and the actuary must comply with the commission's requirement and report to the commission.

(2) The insurance company must pay any additional remuneration, at a rate directed by the commission, to the actuary for the work required under subsection (1) by the commission.

Qualified privilege

126.3  An oral or written statement or report made under this Act by the actuary or former actuary of an insurance company has qualified privilege.

No liability

126.31  The actuary or former actuary of an insurance company who in good faith makes a statement or report under section 126.2, 126.28 or 126.29 is not liable in a civil action because of making the statement or report or because of anything in it.

15 Section 127 is amended

(a) in subsection (1.1) by striking out "whose business authorization is subject to the condition that the business of the insurance company is confined to reinsurance", by striking out "105" and substituting "60" and by striking out "in respect of its reinsurance business", and

(b) by adding the following subsection:

(1.2) The actuary of an insurance company must make, and the company must file with its annual return, a report in a form determined by the superintendent on the reserve referred to in section 77.

16 Section 158 (3) is amended by striking out ", 112, 135 to 138 (1), 140 to 150, 153 and 154" and substituting "and 136 (1) and (2)".

17 Section 160 (3) is amended by striking out "and" at the end of paragraph (e), by adding ", and" at the end of paragraph (f) and by adding the following:

(g) the commission is satisfied

(i) with the corporation's business record and past performance respecting deposit business, insurance business or trust business, and

(ii) that the corporation's operations in British Columbia will be conducted responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution.

18 Section 163 (2) is amended by striking out "whose business authorization is subject to the condition that the business of the extraprovincial insurance corporation is confined to reinsurance", by striking out "105" and substituting "60" and by striking out "in respect of its reinsurance business".

19 Section 164 (1) is amended by striking out "or" at the end of paragraph (e) and by adding the following:

(g) an extraprovincial corporation has been convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or

(h) an extraprovincial corporation has been found by a regulator in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services, .

20 Section 178 (3) is amended by striking out everything after "commission or compensation" and substituting "to a person or class of persons prescribed by regulation."

21 Section 209 is repealed and the following substituted:

Capacity outside British Columbia

209  For the purposes of the administration and enforcement of this Act and the regulations, the following persons may act outside British Columbia as if acting inside it:

(a) the superintendent;

(b) investigators, examiners or other persons

(i) acting under the direction of the superintendent under section 165 or 212,

(ii) appointed by the commission under section 214, or

(iii) appointed by the superintendent under section 215.

22 Section 211 is repealed and the following substituted:

Superintendent may require information

211  The superintendent may,

(a) for the purposes of administering this Act, or

(b) on the request of a financial regulatory authority in another Canadian jurisdiction, for the purposes of assisting in the administration of the laws of that jurisdiction regulating deposit business, insurance business or trust business,

order a financial institution to provide information or to produce records specified or otherwise described in the order within the time or at the intervals specified in the order.

Requirement for notice of action outside British Columbia

211.1 A credit union, an insurance company or a trust company must inform the superintendent immediately in writing if

(a) the credit union, insurance company or trust company has been convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or

(b) the credit union, insurance company or trust company has been found by a regulator in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services.

23 The following sections are added:

Extrajurisdictional evidence

215.1  (1) On an application made by the commission, if it appears to the Supreme Court that a person outside British Columbia may have evidence that may be relevant to

(a) an investigation ordered by the superintendent under section 215, or

(b) a hearing required or permitted under this Act,

the Supreme Court may issue a letter of request directed to the judicial authority of the jurisdiction in which the person to be examined is believed to be located.

(2) The letter of request referred to in subsection (1) must

(a) be signed by the judge hearing the application or another judge of the Supreme Court, and

(b) be provided to the commission for disposition under subsection (5).

(3) A letter of request issued under subsection (1) may request the judicial authority to which it is directed to

(a) order the person referred to in the letter of request to be examined under oath in the manner, at the place and by the date referred to in the letter of request,

(b) order, in the case of an examination for the purposes of a hearing referred to in subsection (1) (b), that a person who is a party to the hearing is entitled to

(i) be present or represented by counsel during the examination, and

(ii) examine the person referred to in paragraph (a) of this subsection,

(c) appoint a person as the examiner to conduct the examination,

(d) order the person to be examined to produce at the examination the records and things or classes of records and things specified in the letter of request,

(e) direct that the evidence obtained by the examination be recorded and certified in the manner specified by the letter of request, and

(f) take any further or other action that the Supreme Court considers appropriate.

(4) The failure of the person entitled under subsection (3) (b) to be present or represented by counsel during the examination or to examine the person referred to in subsection (3) (a) does not prevent the commission from reading in the evidence at the hearing if the examination has otherwise been conducted in accordance with the order made under that subsection.

(5) The commission must send the letter of request,

(a) if the examination is to be held in Canada, to the Deputy Attorney General for British Columbia, or

(b) if the examination is to be held outside Canada, to the Under Secretary of State for External Affairs of Canada.

(6) The letter of request must have attached to it

(a) any interrogatories to be put to the person to be examined,

(b) if known, a list of the names, addresses and telephone numbers, both in British Columbia and in the other jurisdiction, of

(i) the solicitors or agents of the commission,

(ii) the person to be examined, and

(iii) if applicable, the person entitled under subsection (3) (b) to be present or represented by counsel during the examination and to examine the person referred to in subsection (3) (a),

and

(c) a translation of the letter of request and any interrogatories into the appropriate official language of the jurisdiction where the examination is to take place, along with a certificate of the translator, bearing the full name and address of the translator, that the translation is a true and complete translation.

(7) The commission must file with the Under Secretary of State for External Affairs of Canada or with the Deputy Attorney General of British Columbia, as the case may be, an undertaking to be responsible for all of the charges and expenses incurred by the Under Secretary or the Deputy Attorney General, as the case may be, in respect of the letter of request and to pay them on receiving notification of the amount.

(8) This section does not limit any power the commission may have to obtain evidence outside British Columbia by any other means.

(9) The making of an order by a judicial authority referred to in subsection (1) in accordance with a letter of request issued under that subsection does not determine whether evidence obtained under the order is admissible in evidence in a hearing before the commission.

(10) Unless otherwise provided by this section, the practice and procedure in connection with appointing a person, conducting an examination and certifying and returning the appointment under this section are, as far as possible, the same as those that govern similar matters in civil proceedings in the Supreme Court.

Extrajurisdictional request for evidence

215.2  (1) In this section, "qualifying letter of request" means a letter of request that

(a) is issued by a court or tribunal of competent jurisdiction in a jurisdiction other than British Columbia,

(b) is issued on behalf of the body that is, in the jurisdiction from which the letter is issued, empowered by the laws of that jurisdiction to administer or regulate deposit business, insurance business or trust business in that jurisdiction,

(c) is issued in relation to

(i) a matter under investigation by the body referred to in paragraph (b), or

(ii) a matter that is the subject of a hearing before the body referred to in paragraph (b), and

(d) requests that evidence in relation to a matter referred to in paragraph (c) be obtained from a person believed to be located in British Columbia.

(2) On receipt of a qualifying letter of request, the Supreme Court may make the order it considers appropriate and may, without limitation,

(a) order that the person referred to in subsection (1) (d) be examined under oath in the manner, at the place and by the date requested by the foreign court or tribunal,

(b) order, in the case of an examination for the purposes of a hearing referred to in subsection (1) (c) (ii), that a person who is a party to the hearing is entitled to

(i) be present or represented by counsel during the examination, and

(ii) examine the person referred to in paragraph (a) of this subsection,

(c) appoint a person as the examiner to conduct the examination,

(d) order that the person referred to in subsection (1) (d) produce at the examination any records and things or classes of records and things specified in the request,

(e) direct that the evidence obtained by the examination be recorded and certified in the manner requested, and

(f) make any further or other order that the Supreme Court considers appropriate.

(3) An order under subsection (2) may be enforced in the same manner as if the order were made in or in respect of a proceeding brought in the Supreme Court and, if the person referred to in subsection (1) (d) fails without lawful excuse to comply with the order, the person is in contempt of the Supreme Court and is subject to the penalty that the Supreme Court imposes.

(4) A person ordered to give evidence under subsection (2) has the same rights

(a) to receive conduct money or any other money that the person would have had if the examination were held in relation to a proceeding in the Supreme Court, and

(b) to refuse to answer questions and produce records and things or classes of records and things that the person would have in a proceeding in the Supreme Court.

(5) The person appointed by the Supreme Court as the examiner has the authority to administer an oath or affirmation to the person to be examined.

(6) Unless otherwise provided in this section, the practice and procedure in connection with appointing a person, conducting an examination and certifying and returning the appointment under this section are, as far as possible, the same as those that govern similar matters in civil proceedings in the Supreme Court.

24 The following section is added to Division 2 of Part 7:

Collecting and sharing information respecting financial institutions

219.1  (1) For the purposes of administering this Act or assisting in the administration of the laws of another jurisdiction regulating deposit business, insurance business or trust business, the superintendent or a person described in section 209 (b) may, directly or indirectly, collect information from, and use information collected from,

(a) the Insurance Council of British Columbia, the deposit insurance corporation, an insurance compensation plan prescribed for the purposes of section 66 (2) or any entity that insures deposits of an extraprovincial trust corporation or an extraprovincial credit union in Canada,

(b) a financial institution or extraprovincial corporation or the auditor or actuary of a financial institution or extraprovincial corporation,

(c) a person licensed under Division 2, or issued a permit under Division 3, of Part 6,

(d) a society referred to in section 191, or

(e) a law enforcement agency, government, governmental authority or financial services regulatory authority,

in British Columbia or elsewhere.

(2) For the purposes of administering this Act or assisting in the administration of the laws of another jurisdiction regulating deposit business, insurance business or trust business, the superintendent may, despite section 218, disclose information to, or share information with,

(a) the Insurance Council of British Columbia, the deposit insurance corporation, an insurance compensation plan in Canada prescribed for the purposes of section 66 (2) or any entity in Canada that insures deposits of an extraprovincial trust corporation or an extraprovincial credit union,

(b) the auditor or actuary of a financial institution,

(c) a law enforcement agency, government, governmental authority, financial regulatory authority or securities regulatory authority in British Columbia, or

(d) a law enforcement agency, government, governmental authority or financial services regulatory authority in another jurisdiction in Canada with which the superintendent has entered into an arrangement or agreement that relates to or includes the sharing of information.

25 Section 235 (1) (a) is amended by striking out "253.1" and substituting "253.1 (8)".

26 Section 237 (2) (a) is amended

(a) by striking out "244 (2)" and substituting "244 (2) or (5)", and

(b) by striking out "253.1,".

27 Sections 238 (1) (a) and 238.1 (1) (a) are amended by striking out "244 (2)" and substituting "244 (2) or (5)".

28 Sections 242 (1) (a) and 242.4 (1) (a) are amended

(a) by striking out "244 (2)" and substituting "244 (2) or (5)", and

(b) by striking out "253.1" and substituting "253.1 (8)".

29 Section 242 (2) is amended by striking out "trust company or credit union" and substituting "credit union, an extraprovincial credit union or an extraprovincial trust corporation" and by adding "or extraprovincial insurance corporation" after "insurance company".

30 Section 243 is amended

(a) in subsection (1) by adding "a person appointed under section 277.2," after "277 (e),", and

(b) in subsection (2) (b) by adding "or a person appointed under section 277.2" after "277 (e)".

31 Section 244 is amended by adding the following subsection:

(5) If a person has been

(a) convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or

(b) found by a regulator or a court in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services,

the commission may order the person to

(c) cease doing any act or pursuing any course of conduct that is the same or similar to the act or course of conduct that resulted in the conviction or finding described in paragraph (a) or (b), or

(d) carry out specified actions that the commission considers necessary to remedy the situation.

32 Section 249 is amended by adding the following subsection:

(1.1) The commission may make an order under subsection (1) (h), (i) or (j) if a financial institution has been

(a) convicted of an offence in Canada or another jurisdiction arising from a transaction, business or course of conduct related to financial services, or

(b) found by a regulator or a court in Canada or another jurisdiction to have contravened the laws of that jurisdiction respecting financial services.

33 Section 251 (2) (a) is amended by striking out ", depositors".

34 Section 253.1 is repealed and the following substituted:

Administrative penalties

253.1  (1) If, in the opinion of the commission, a person has contravened

(a) a prescribed provision of the Act,

(b) a prescribed provision of the regulations,

(c) a condition of a business authorization,

(d) an order under section 244 (2) (f), 245 (1) (f) to (j) or 247, or

(e) an undertaking given to the commission or the superintendent under section 208 or 244 (2) (g),

the commission may give written notice to the person requiring the person to pay an administrative penalty in the amount specified in the notice.

(2) A notice of administrative penalty under subsection (1) must specify all of the following:

(a) the contravention;

(b) the amount of the administrative penalty;

(c) the date by which the person must pay the administrative penalty;

(d) the right of the person, within 14 days after the notice is delivered, to dispute the administrative penalty, including disputing the amount of the administrative penalty, and the procedure for disputing the penalty.

(3) A person to whom an administrative penalty notice is given must, within 14 days after receiving the notice,

(a) pay the administrative penalty, or

(b) by delivering notice in writing to the commission, dispute the administrative penalty, including disputing the amount of the administrative penalty, in accordance with the regulations.

(4) A notice of dispute respecting a penalty described under subsection (5) (b) must indicate whether the person wishes to proceed by way of written submissions or oral hearing.

(5) A person may dispute an administrative penalty as follows:

(a) by written submissions only, if the administrative penalty specified in the notice is less than

(i) $5 000, in the case of a corporation, or

(ii) $2 000, in the case of an individual;

(b) by written submissions or oral hearing, if the administrative penalty specified in the notice is

(i) $5 000 or more, in the case of a corporation, or

(ii) $2 000 or more, in the case of an individual.

(6) If a person is proceeding by way of written submissions, the submissions must be delivered to the commission no later than 30 days after the person receives the administrative penalty notice.

(7) If a person requests an oral hearing, the commission must hold an oral hearing within a reasonable time after delivery of the notice referred to in subsection (3) (b).

(8) The commission must, within a reasonable time after receiving written submissions or holding an oral hearing, confirm whether the person committed the contravention, and if so, may, by order, confirm the penalty specified in the notice under subsection (1) or order a lesser penalty or no penalty.

(9) If a person requests an oral hearing respecting a penalty described under subsection (5) (b) and fails to appear at the time scheduled for the hearing, the commission may exercise its powers under subsection (8) in the person's absence.

(10) An administrative penalty for a contravention must not exceed the amount prescribed by regulation for that contravention, and in any event must not exceed

(a) $50 000, in the case of a corporation, and

(b) $25 000, in the case of an individual.

(11) An order made under subsection (8) must specify all of the following:

(a) the contravention;

(b) the amount of the administrative penalty;

(c) the date by which the person must pay the administrative penalty;

(d) the person's right to an appeal.

(12) The commission must deliver to the person a copy of any order made under subsection (8).

(13) A person on whom an administrative penalty is imposed by order under subsection (8) must, within 30 days after receiving the order,

(a) pay the administrative penalty, or

(b) file notice of appeal.

(14) An appeal of an order made under subsection (8) operates as a stay and suspends the order until disposition of the appeal.

(15) The time limit for serving an administrative penalty notice under subsection (1) is 2 years after the date that the superintendent or the commission first had knowledge of the facts on which the notice of contravention is based, whichever is earlier.

(16) If a corporation commits a contravention referred to in subsection (1), the commission may, in accordance with this section, impose an administrative penalty on an officer, director or agent of the corporation who authorized, permitted or acquiesced in the contravention, even though the corporation is liable for or pays an administrative penalty.

(17) An administrative penalty must be paid into the consolidated revenue fund.

35 Section 253.2 (2) is amended by striking out "may not make an order under section 253.1 (1)" and substituting "may not impose an administrative penalty under section 253.1".

36 Section 253.3 is amended by striking out "as ordered under 253.1 in accordance with section 253.1 (4) (a)" and substituting "within the time period specified in a notice under section 253.1 (1) or an order under section 253.1 (8), as applicable,".

37 Section 289 is amended

(a) in subsection (3) by adding the following paragraphs:

(i.1) for the purposes of section 178 (3), prescribing a person or class of persons to whom a commission or compensation may be paid, allowed to be paid, offered or promised;

(m.1) for the purposes of section 126.17, prescribing matters to be included in an actuary's report;

(u.1) respecting administrative penalties, including the following:

(i) prescribing provisions of this Act or the regulations for the purposes of section 253.1 (1) (a) or (b);

(ii) prescribing a schedule of penalties for the purposes of section 253.1;

(iii) prescribing the manner and method for paying an administrative penalty. ,

(b) in subsection (4) (i) by striking out everything after "this power," and substituting "restricting the extent to which an insurance company may cause itself, or prohibiting an insurance company from causing itself, to be reinsured against risks undertaken under its policies,", and

(c) by adding the following subsection:

(4.2) A regulation made under subsection (4) (i) may do one or both of the following:

(a) delegate a matter to the commission;

(b) confer a discretion on the commission.

Finance Statutes Amendment Act, 2009

38 Section 19 (b) of the Finance Statutes Amendment Act, 2009, S.B.C. 2009, c. 15, as it amends section 170 (1) of the Securities Act, R.S.B.C. 1996, c. 418, is amended by striking out "audit" in both places and substituting "auditor".

Home Owner Grant Act

39 Section 8 of the Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended

(a) in subsections (1) and (1.1) by striking out "on the form and in the manner prescribed." and substituting "in the approved form and in accordance with the regulations.", and

(b) by adding the following subsection:

(4) In addition to any information required to be provided under subsection (1) or (1.1), an applicant who is a person with disabilities must submit an approved form, completed by a medical practitioner or other prescribed person, certifying

(a) that the person is a person with disabilities,

(b) the nature and extent of the disability, and

(c) that costs were incurred because of that disability.

40 Section 10 (1) (a) is amended by striking out "in the manner prescribed," and substituting "in the manner approved by the minister,".

41 Section 18 (2) is amended

(a) by repealing paragraph (d.1) and substituting the following:

(d.1) prescribe persons in addition to medical practitioners who may certify that a person is a person with disabilities; , and

(b) by adding the following paragraph:

(d.2) make provisions concerning applications for a grant and the information, authorizations and verifications that must be supplied in support of an application; .

42 Section 18.2 is amended

(a) by adding the following subsection:

(1.1) The minister may approve the manner in which collectors must comply with section 10 (1) (a). , and

(b) by repealing subsection (2) and substituting the following:

(2) Deviations from an approved form under subsection (1) or an approved manner of compliance under subsection (1.1) that do not affect the substance of the form or manner of compliance and are not intended to mislead do not invalidate the form or manner of compliance used.

Personal Property Security Act

43 Section 7 of the Personal Property Security Act, R.S.B.C. 1996, c. 359, is amended

(a) by repealing subsection (1) and substituting the following:

(1) In this section:

"registered organization" means one that is organized by or under a law of the United States of America or of a state, which law requires the organization of the organization to be disclosed in a public record;

"state" means a state of the United States of America, the District of Columbia, Puerto Rico, the United States Virgin Islands or a territory or insular possession subject to the jurisdiction of the United States of America.

(1.1) For the purpose of this section, a debtor is located,

(a) if the debtor is an individual, in the jurisdiction in which the debtor's principal residence is located,

(b) if the debtor is a partnership, other than a limited partnership, and the partnership agreement governing the partnership states that the agreement is governed by the laws of a province, in that province,

(c) if the debtor is a corporation, a limited partnership or an organization and is incorporated, continued, amalgamated or otherwise organized by or under a law of a province, which law requires the incorporation, continuance, amalgamation or organization to be disclosed in a public record, in that province,

(d) if the debtor is a corporation incorporated, continued or amalgamated by or under a law of Canada, which law requires the incorporation, continuance or amalgamation to be disclosed in a public record, in the jurisdiction in which the registered office or head office of the debtor is located,

(i) as set out in the special Act, letters patent, articles or other constating instrument by or under which the debtor was incorporated, continued or amalgamated, or

(ii) as set out in the debtor's bylaws, if subparagraph (i) does not apply,

(e) if the debtor is a registered organization that is organized by or under a law of a state, in that state,

(f) if the debtor is a registered organization that is organized by or under a law of the United States of America,

(i) in the state that the law of the United States of America designates, if the law designates a state of location,

(ii) in the state that the registered organization designates, if the law of the United States of America authorizes the registered organization to designate a state of location, or

(iii) in the District of Columbia in the United States of America, if subparagraphs (i) and (ii) do not apply,

(g) if the debtor is one or more trustees acting for a trust,

(i) if the trust instrument governing the trust states that the instrument is governed by the laws of a province, in that province, or

(ii) in the jurisdiction in which the administration of the trust by the trustees is principally carried out, if subparagraph (i) does not apply, or

(h) if none of paragraphs (a) to (g) applies, in the jurisdiction in which the chief executive office of the debtor is located.

(1.2) For the purposes of this section, a debtor continues to be located in the jurisdiction specified in subsection (1.1),

(a) in the case of a debtor who is an individual, despite the death or incapacity of the individual, or

(b) in the case of a debtor who is not an individual, despite

(i) the suspension, revocation, forfeiture or lapse of the debtor's status in its jurisdiction of incorporation, continuation, amalgamation or organization, or

(ii) the dissolution, winding-up or cancellation of the debtor. , and

(b) in subsection (2) by striking out ", including the conflict of laws rules,".

44 Section 7.1 is amended

(a) in subsection (2) by striking out "is governed by the law" and substituting "are governed by the law", and

(b) in subsection (3) (a) by striking out "section 7 (1)" and substituting "section 7 (1.1)".

45 The following sections are added:

Transition — definitions and application for mobile goods, intangibles, etc.

7.2  (1) In this section and in sections 7.3 to 7.5:

"effective date" means the date on which this section comes into force;

"prior law" means this Act as it read immediately before the effective date, including the applicable law as determined under this Act;

"prior security agreement" means a security agreement entered into before the effective date;

"prior security interest" means a security interest referred to in section 7 (2) (a) or (b) that arises under a prior security agreement.

(2) Subject to subsection (3), if a prior security agreement is amended, renewed or extended by an agreement entered into on or after the effective date, the amended, renewed or extended security agreement is a prior security agreement.

(3) If an amendment, renewal or extension to a prior security agreement referred to in subsection (2) includes collateral that was not subject to the security interest created or provided by the prior security agreement, the amended, renewed or extended security agreement is not a prior security agreement in relation to that collateral.

Transition — validity of prior security interest

7.3  For the purpose of determining the location of the debtor in order to determine the law governing the validity of a prior security interest, section 7 (1) of the prior law governs.

Transition — perfection of security interest and prior security interest

7.4  (1) Subject to subsections (2) and (3), for the purpose of determining the location of the debtor in order to determine the law governing the perfection of a security interest referred to in section 7 (2) (a) or (b), section 7 (1), (1.1) and (1.2) governs, whether attachment occurs before, on or after the effective date.

(2) A prior security interest that is a perfected security interest under prior law immediately before the effective date continues perfected until the earlier of

(a) the day perfection ceases under prior law, and

(b) the 5th anniversary of the effective date.

(3) A prior security interest referred to in subsection (2) that is perfected in accordance with the applicable law as determined under this Act on or after the effective date but before the earlier of the days referred to in subsection (2) is continuously perfected from the day of its perfection under prior law.

Transition — effect of perfection or non-perfection

7.5  (1) Subject to subsections (2) to (4), for the purpose of determining the location of the debtor in order to determine the law governing the effect of perfection or non-perfection of a security interest referred to in section 7 (2) (a) or (b), section 7 (1), (1.1) and (1.2) governs, whether attachment occurs before, on or after the effective date.

(2) For the purpose of determining the location of the debtor in order to determine the law governing the effect of perfection or non-perfection of a prior security interest in relation to an interest, other than a security interest, in the same collateral arising before the effective date, section 7 (1) of the prior law governs, whether or not the prior security interest is perfected on or after the effective date in accordance with the applicable law as determined under this Act.

(3) Subject to subsection (4), for the purpose of determining the location of the debtor in order to determine the law governing the priority of a prior security interest in relation to another prior security interest in the same collateral, section 7 (1) of the prior law governs.

(4) If a prior security interest is not a perfected security interest under prior law immediately before the effective date, but is perfected in accordance with the applicable law as determined under this Act on or after the effective date, for the purpose of determining the location of the debtor in order to determine the law governing the priority of the prior security interest in relation to another security interest in the same collateral, section 7 (1), (1.1) and (1.2) governs.

Transition — investment property

7.6  (1) In this section:

"effective date" means the date on which this section comes into force;

"prior law" means this Act as it read immediately before the effective date, including the applicable law as determined under this Act;

"prior security agreement" means a security agreement entered into before the effective date;

"prior security interest" means a security interest in investment property that arises under a prior security agreement.

(2) If a prior security agreement is amended, renewed or extended by an agreement entered into on or after the effective date, the amended, renewed or extended security agreement is a prior security agreement.

(3) Subject to subsections (4) to (6) and section 79, for the purpose of determining the law governing the validity, the perfection, the effect of perfection or non-perfection and the priority of a security interest in investment property, section 7.1 governs, whether attachment occurs before, on or after July 1, 2007, being the date that section 7.1 came into force.

(4) For the purpose of determining the law governing the validity of a prior security interest, prior law governs.

(5) A prior security interest that is perfected by registration and that is a perfected security interest under prior law immediately before the effective date continues perfected until the earlier of

(a) the day perfection ceases under prior law, and

(b) the 5th anniversary of the effective date.

(6) A prior security interest referred to in subsection (5) that is perfected in accordance with the applicable law as determined under this Act on or after the effective date but before the earlier of the days referred to in subsection (5) is continuously perfected from the day of its perfection under prior law.

46 Section 8 (1) and (2) is amended by striking out "sections 5 to 7.1" and substituting "sections 5 to 7.6".

47 Section 8.1 is amended by striking out "section 7.1" and substituting "sections 5 to 8".

48 Section 46 (2) is amended by adding "or" at the end of paragraph (b) and by repealing paragraph (c).

49 Section 50 is amended

(a) in subsection (4) by striking out "and the secured party must amend or discharge the registration not later than 15 days after the demand is given." and substituting "and the secured party must register a financing change statement amending or discharging the registration not later than 40 days after the demand is given.",

(b) by repealing subsection (5) and substituting the following:

(5) If the secured party fails to register a financing change statement amending or discharging the registration as required in subsection (4), the person who gave the demand may, on giving the registrar proof satisfactory to the registrar that the demand has been given to the secured party, register a financing change statement amending or discharging the registration in accordance with the demand, unless in the meantime the secured party registers an order of a court maintaining the registration. ,

(c) in subsection (6) by striking out "and the notice referred to in subsection (5)",

(d) by repealing subsection (7), and

(e) in subsection (9) by striking out "Subsections (5) and (7) do not apply" and substituting "Subsection (5) does not apply".

50 The Schedule is amended by striking out item 10 and substituting the following:

Repairers Lien Act

51 Section 5 (2) of the Repairers Lien Act, R.S.B.C. 1996, c. 404, is amended

(a) by striking out "15 days" and substituting "40 days", and

(b) by repealing subsection (3) and substituting the following:

(3) If the garage keeper fails to comply with a demand referred to in subsection (2), the person who gave the demand may, on giving the registrar proof satisfactory to the registrar that the demand has been given to the garage keeper, register a financing change statement discharging or partially discharging the registration in accordance with the demand, unless in the meantime the garage keeper registers an order of a court maintaining the registration.

52 Section 6 (2) is amended by adding "or" at the end of paragraph (b) and by repealing paragraph (c).

Securities Act

53 Section 1 (1) of the Securities Act, R.S.B.C. 1996, c. 418, is amended in the definition of "forward-looking information" by striking out "results of operations" in both places and substituting "financial performance".

54 Section 55 is amended

(a) by striking out "or" at the end of paragraph (b),

(b) by adding ", or" at the end of paragraph (c), and

(c) by adding the following paragraph:

(d) a credit rating organization or a credit rating.

55 Section 83 is amended

(a) in subsection (1) by adding ", subject to the regulations," after "to which section 61 applies must",

(b) in subsections (3) and (5) by striking out "the latest prospectus, and any amendment to the prospectus," and substituting "the latest prospectus, any amendment to the prospectus or another prescribed document,", and

(c) in subsection (5) by striking out "the prospectus and any amendment to that prospectus." and substituting "that prospectus, amendment or other prescribed document."

56 Section 114 (2) is amended by adding "or the regulations relating to this Part" after "requirement under this Part".

57 Section 135 (a) is repealed and the following substituted:

(a) a purchaser of a security to whom a prospectus, any amendment to a prospectus or other prescribed document was required under section 83 to be sent but which prospectus, amendment to a prospectus or other prescribed document was not sent or was not filed under the Act, or .

58 Section 140.1 is amended

(a) in paragraphs (a) and (b) of the definition of "core document" by striking out "interim financial statements" and substituting "an interim financial report", and

(b) in the definition of "management's discussion and analysis" by striking out "results of operations" and substituting "financial performance".

59 Subsection 141 (2) is amended by adding the following paragraph:

(o) a credit rating organization.

60 Section 141.1 (1) is amended by striking out "or a clearing agency" and substituting ", a clearing agency or a credit rating organization".

61 Section 148 is amended

(a) by repealing subsection (1) and substituting the following:

(1) For the purpose of protecting the integrity of an investigation authorized under section 142, the commission may make an order, that applies for the duration of the investigation, prohibiting a person from disclosing to any person the existence of the investigation, the inquiries made by persons appointed under section 142, or the name of any witness examined or sought to be examined in the course of the investigation.

(1.1) An order made under subsection (1) does not apply to the disclosure of information between a person and the person's lawyer. ,

(b) in subsection (2) by striking out "Subsection (1)" and substituting "An order made under subsection (1)", and

(c) by repealing subsection (3).

62 Section 153 (1) (a) is amended

(a) by striking out "or" at the end of subparagraph (v),

(b) at the end of subparagraph (vi) by striking out "and" and substituting "or", and

(c) by adding the following subparagraph:

(vii) a credit rating organization, and .

63 Section 161 (7) is amended by adding the following paragraph:

(c.1) a credit rating organization, .

64 Section 169.1 (1) is amended by adding the following paragraph:

(a.1) a credit rating organization, .

65 Section 170, as amended by section 19 (b) of the Finance Statutes Amendment Act, 2009, S.B.C. 2009, c. 15, is amended by striking out "audit" in both places and substituting "auditor".

66 Section 183 is amended

(a) by adding the following paragraph:

(9.1) respecting any matter necessary or advisable to regulate credit rating organizations, including, but not limited to, rules that refer to a credit rating organization, or a class of credit rating organizations, designated by the commission; ,

(b) in paragraph (13) by striking out "and" at the end of subparagraph (i), by adding ", and" at the end of subparagraph (ii) and by adding the following subparagraph:

(iii) regulating or prohibiting the use of a class of disclosure documents during a distribution; , and

(c) in paragraph (41) by adding "or otherwise" after "under paragraph (40)".

Tobacco Tax Act

67 Section 1 (1) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by adding the following definition:

"cigar" has the same meaning as in section 2 of the Excise Act, 2001 (Canada); .

Commencement

68  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: