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Volume 63, No. 12

141/2020

The British Columbia Gazette,

Part II

June 30, 2020

B.C. Reg. 141/2020 , deposited June 22, 2020, under the FINANCIAL INSTITUTIONS AMENDMENT ACT, 2019 [section 133] and the FINANCIAL INSTITUTIONS ACT [section 289]. Order in Council 341/2020, approved and ordered June 22, 2020.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that

(

a) the Financial Institutions Amendment Act, 2019 , S.B.C. 2019, c. 39, is brought into force as set out in the attached

Schedule 1,

and

(

b) the Financial Services Authority Rule-Making Procedure Regulation is made

as set out in the attached

Schedule 2.

— C. JAMES, Minister of Finance and Deputy Premier ; H. BAINS, Presiding Member of the Executive Council .

Schedule 1

1 The following provisions of the Financial Institutions Amendment Act, 2019 , S.B.C. 2019, c. 39, are brought into force:

(

a) section 1 (

a) and (f);

(

b) section 9 (

a) as it adds "and the rules made by the Authority";

(

c) sections 9 (

b) and (c), 10, 11, 18, 27, 28 (a), 29 and 42 (a);

(

d) section 42 (

b) as it adds subparagraph (vii.1);

(

e) section 43 except as it adds sections 201.1 (1) (

e) and 201.4;

(

f) sections 48, 57 and 58;

(

g) section 60 as it adds paragraph (e.1);

(

h) sections 71 (a), 72, 74 (

a) and (d), 75 (a), 76, 79 (

d) and (e), 105 and 111;

(

i) section 112 (

a) as it adds paragraph (a.2);

(

j) sections 112 (

b) and (

c) and 131.

Schedule 2

FINANCIAL SERVICES AUTHORITY

RULE-MAKING PROCEDURE REGULATION

Contents

Definitions

Approval in principle

Publication of proposed rule

Alteration of proposed rule

Consent to rule by minister

Amendments to existing rules

Urgent rules

Publication of rule

Repeal of rule

Definitions

1 In this regulation:

"publish" includes posting information on a publicly accessible website maintained by or on

behalf of the Authority;

"rule" means a rule under

section 201.1 of the Financial Institutions Act .

Approval in principle

(1) Except as provided in

section 6 or 7, if the Authority proposes to make a rule,

it must

(

a) provide to the minister a written explanation of the need for and the anticipated

effect of the proposed rule,

(

b) obtain the minister's written approval in principle to the proposal, and

(

c) otherwise comply with this regulation.

(2) After receiving the explanation referred to in subsection (1) (a), the minister

may

(

a) approve the proposal in principle, with or without conditions, or

(

b) disapprove the proposal.

Publication of proposed rule

(1) If the minister gives written approval in principle to the proposed rule, the

Authority must, before proceeding under

section 5, publish

(

a) the text of the proposed rule,

(

b) an explanation of the need for and the anticipated effect of the proposed

rule, and

(

c) a notice that public comment on the proposed rule may be provided in written

form to the Authority for a specified period of

(

i) at least 30 days if the Authority is republishing the proposed rule under

section 4 (a), or

(ii) at least 60 days in all other cases.

(2) If the Authority has not received notice of a decision under

section 2 (2)

within 30 days after providing the explanation referred to in

section 2 (1) (a), the

Authority may publish the information referred to in subsection (1) of this section.

(3) If a proposed rule is published under subsection (2), the publication must

include a notice that the minister's approval in principle for the proposed rule had

not been obtained by the date of the publication.

(4) If, after a proposed rule is published under subsection (2), the minister

notifies the Authority that the minister disapproves the proposal, the Authority must

withdraw the proposed rule and must promptly publish notice of that withdrawal.

Alteration of proposed rule

4 If the Authority wishes to alter a proposed rule after its publication under

section 3

but before its submission to the minister under

section 5, the Authority must,

(

a) if in its opinion the alteration changes the proposed rule in a material way,

make the alteration to the proposed rule and proceed under sections 2 and 3 as if

the proposed rule, as altered, were a new proposed rule, or

(

b) in any other case, make the alteration to the proposed rule and proceed under

section 5 as if the original publication under

section 3 contained the alteration.

Consent to rule by minister

(1) After expiry of the period specified under

section 3 (1) (

c) and after considering

the comments received during that period, the Authority must, before proceeding under

section 8, obtain the minister's written consent to the proposed rule and, for that

purpose, must provide to the minister

(

a) the text of the proposed rule,

(

b) a copy of the notice published under

section 3,

(

c) a copy of the written comments received in response to the notice, and

(

d) the Authority's written analysis of the significant issues and concerns raised

by those comments.

(2) After receiving the material referred to in subsection (1) (

a) to (d), the

minister may

(

a) consent to the proposed rule, with or without conditions, or

(

b) reject the proposed rule.

(3) If the minister has neither consented to nor rejected the proposed rule within

60 days after receipt of the material referred to in subsection (1), the minister

is deemed to have consented to the proposed rule.

Amendments to existing rules

(1) If the Authority proposes to amend a rule, the Authority must,

(

a) if in its opinion the proposed amendment will change the rule in a material

way, proceed under sections 2, 3 and 5, or

(

b) if in its opinion the proposed amendment will not change the rule in a material

way, obtain the minister's written consent to the proposed amendment, and for that

purpose must provide to the minister

(

i) the text of the proposed amendment, and

(ii) an explanation of the need for and the anticipated effect of the proposed

amendment.

(2) After receiving a proposed amendment under subsection (1) (b), the minister

may

(

a) consent to the proposed amendment, with or without conditions,

(

b) reject the proposed amendment, or

(

c) approve the proposed amendment in principle, with or without conditions, and

direct the Authority to proceed under sections 3 and 5 with respect to the proposed

amendment.

(3) If the minister has not notified the Authority of a decision under subsection

(2) within 60 days after receipt of the records referred to in subsection (1) (b), the

minister is deemed to have consented to the proposed amendment.

Urgent rules

(1) In this section, "proposed rule" includes a proposed amendment to a rule.

(2) If the Authority considers it necessary and in the public interest to make

or amend a rule without delay, it must obtain the minister's written consent to the

proposed rule and to the making of the proposed rule under this

section and, for that

purpose, must provide to the minister

(

a) the text of the proposed rule,

(

b) an explanation of the need for and the anticipated effect of the proposed

rule,

(

c) the date on which the proposed rule is to come into force, and

(

d) an explanation of the need for seeking the minister's consent under this

section rather

than under

section 5 or 6.

(3) If a proposed rule approved under this

section is not published in accordance

with

section 8 within 10 days after the minister's consent under subsection (2) is

obtained, the Authority must notify the minister that the proposed rule has not been

published and must provide reasons for the delay.

(4) Failure to receive the consent of the minister required under subsection

(2) does not prevent the Authority from proceeding under sections 2 to 5 in respect of

the proposed rule.

(5) Unless earlier repealed or revoked, a rule made by the Authority and consented

to by the minister under this

section is revoked on the 275th day after the day it

is published in accordance with

section 8.

Publication of rule

(1) After obtaining the consent of the minister required by

section 5, 6 or 7, as

the case may be, the Authority, if it wishes to proceed with the making of the rule,

must publish

(

a) the text of the rule, and

(

b) the date on which the rule comes into force.

(2) Except for a rule consented to by the minister under

section 7, a rule must

not come into force before the day that is 30 days after the first day of its publication

as required by subsection (1).

Repeal of rule

9 This regulation applies to the repeal of a rule.

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