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This Act is current to June 30, 2026

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

Contents

Part 1 —

Interpretation and Application

Definitions and

interpretation

Application of Business Corporations Act

3-5

Repealed

Repealed

Repealed

Pre-existing trust company

9-10

Repealed

10.1

Specific rules respecting Business Corporations Act application to extraprovincial corporations

This Act paramount

Part 2 — Incorporation, Significant Changes and Winding Up

Division 1 — Names

Names for trust companies and insurance companies

12.1

False representation prohibited

Division 1.1 — Formation of Trust Companies and Insurance Companies

Consent required for incorporation

Preliminary activities

Division 1.2 — Alteration of Charter of Trust Companies and Insurance Companies

Consent required for alteration of memorandum, notice of articles or articles

Division 1.3 — Conversion of Special Act Insurance Companies

Consent required for conversion of special Act insurance company

Continuation of business authorization on conversion of special Act insurance company

Division 1.4 — Continuation of Trust Companies and Insurance Companies

Consent required for continuation of extraprovincial trust corporation or extraprovincial insurance corporation into British Columbia

Consent required for continuation of trust company or insurance company out of British Columbia

Division 1.5 — Amalgamation of Trust Companies and Insurance Companies

Consent required for amalgamation of trust company or insurance company

Division 1.6 — Arrangements, Acquisitions or Dispositions by Trust Companies and Insurance Companies

Consent of Authority to arrangement, acquisition or disposition

Division 1.7 — Background for Consents

Consent required for continuation or amalgamation

Superintendent may obtain information to support consent considerations

Division 2 — Dissolution and Winding Up of Trust Companies and Insurance Companies

Notice to superintendent required on voluntary dissolution or winding up

Winding up by Supreme Court order — superintendent is party

25.1

Liquidation and dissolution by court order

Liquidation and dissolution on direction of Authority

Application of this Part

Duties of liquidators on Authority-ordered liquidation and dissolution

Deferral of dissolution

Publication of notice

Filing quarterly statements and producing records

Examination of trust and insurance companies being liquidated and dissolved

Information required on restoration applications

33.1

Provisional liquidator

34-40

Repealed

Division 3 — Special Provisions Respecting Insurance Companies Ceasing Business or Winding Up

Provisions for subsisting contracts of insurance

Reinsurance arranged by liquidator

Rights of the insured on reinsurance

Termination if reinsurance is not arranged

Liquidator's duty to give notice

Provision for payment of losses, preferred claims and unearned premiums

Endowment and life funds distributed

Division 4 — Ownership of Trust and Insurance Companies

Definitions and

interpretation for Division

Determination of base level ownership percentage

Share acquisition restrictions

Grounds for refusal of consent to major share acquisition

Reporting requirement

Shares acquired in contravention of

section 50 not registrable

Prohibition on dividends

No voting rights if excess shareholdings

Validity of transfer of voting shares

Directors' bylaws — members' declarations

Superintendent may require declaration of share ownership

Part 3 — Business Authorization and Business

Division 1 — Business Authorization of Financial Institution

Commencement of business

Business authorizations for corporations now in business

Application for business authorization

Conditions on business authorization

Certificate of business authorization

Voluntary revocation of business authorization

Division 2 — Operation of Financial Institutions

Authorized business

Membership in insurance plan

Capital and liquidity of financial institutions

Repealed

Restriction on right to appoint receiver

Division 3 — Trust Business

Unauthorized trust business by corporations prohibited

Repealed

Common trust funds authorized

Extent of liability

Execution of trusts

Division 4 — Insurance Business

74.1

Mutual company definition

Unauthorized insurance business prohibited

Exceptions

Reserves

Reinsurance

Rebates of premiums prohibited

Separation of class funds of insurance company

80.1

Coverage by property insurer

80.2

Obligation of insurer with respect to agent's commission

80.3

Insurer — complaint resolution

Division 5 — Deposits and Borrowing of Trust Companies and Credit Unions

Unauthorized deposit business prohibited

Deposits in credit unions

Deposits from persons unable to contract

Disposition of deposits

Inactive deposits

Limitation on lending

Subordinated notes

Division 6 — Marketing of Financial Products

88-90

Repealed

Disclosure of identity in advertising, etc

Insurers and licensees to file policy forms

92.1

Requirements of out of province insurers

92.2

Online sale of insurance

Prohibition against unfair, misleading or deceptive documents

Coercive tied selling prohibited

94.1

Insurance company — code of market conduct

94.2

Credit union — code of market conduct

94.3

Credit union — complaint resolution

Repealed

Substitute action of superintendent

Part 4 — Corporate Governance

Division 1 — Directors and Officers of Financial Institutions

Number of directors and unaffiliated directors

Repealed

98.1

Cumulative voting for directors

Removal of directors and officers

Credit union directors ceasing to hold office

Standard of care for directors and officers

101.1

Director's application to Supreme Court — superintendent is party

Indemnification of directors and officers

Quorum and unaffiliated directors

Misuse of confidential information

Information required of directors and senior officers

Meeting requested by auditor

Meeting requested by superintendent

Director's statement on own resignation or pending removal

Circulation of director's statement

Directors' remuneration

Committees

Conduct review committee

Division 2 — Auditors and Audit Committees of Financial Institutions

Auditor

Auditor may be a depositor

Audit committee and unaffiliated directors

Auditor has right to attend directors' meetings

Appointment and removal of auditor

Report to accounting body

Resignation of auditor

Auditor appointment for subsidiary

Amendment of financial statements and auditor's report

Repealed

Report to directors

Additional reporting

Additional auditor

No liability

Division 2.1 — Actuaries — Insurance Companies

126.1

Definition

126.11

Actuaries

126.12

Notice of appointment

126.13

Designated individual

126.14

Qualifications of actuary

126.15

Senior officers precluded

126.16

Revocation of actuary's appointment

126.17

Declaration of vacancy by court

126.18

Ceasing to hold office

126.19

Filling vacancy

126.2

Statement of actuary

126.21

Duty of replacement actuary

126.22

Right to information

126.23

Actuary's valuation

126.24

Special valuation

126.25

Notice of meeting to actuary

126.26

Actuary's report

126.27

Report to directors

126.28

Report on matters requiring rectification

126.29

Actuary's procedures

126.3

Qualified privilege

126.31

No liability

Division 3 — Books, Records, Returns and Financial Statements of Financial Institutions

Filings

Financial statements

Accounting principles

Public access to financial information

Financial year end

Records filed with registrar

Location of records

Repealed

Division 4 — Investments and Lending of Financial Institutions

Investment and loan committee

Investment and loan standards

Superintendent's powers over investment and lending policy

Compliance with investment and lending limits

Credit unions not permitted to invest in other credit unions

139.1

Credit unions require consent for prescribed transactions

Other authorized loans, investments and activities of subsidiaries

Investment in a corporation

Other authorized investments

Disposal of investments

143.1

Loans and guarantees prohibited

143.2

Financial assistance restricted

143.3

Contract enforceable

Part 5 — Related Parties

Interpretation and designation of related parties

When related party transactions are permitted

Conduct review committee's power to approve other transactions

When superintendent may consent to related party transactions

Restrictions on self dealing as a fiduciary

Disclosure by related parties

Voidable transactions

Derivative action

Liability arising from related party transactions

Burden of proof

Reporting by auditor

155-156

Repealed

Part 6 — Regulation of Other Persons

Division 1 — Extraprovincial Corporations

Definition of "primary jurisdiction"

Application of this Division

Authorized business

Business authorization for extraprovincial trust or insurance corporation

160.1

Business authorization for extraprovincial credit union

Name

Records

Filings

Requirement for notice of regulatory action outside British Columbia

Examination of extraprovincial corporations

Amalgamation of extraprovincial corporations

Notice of ceasing business

Division 2 — Insurance Agents and Adjusters

Definitions for Division

Exercise of rights under licence

Nominees

Prohibition of unlicensed agents and salespersons

172-173

Repealed

Issue of licences

Repealed

Insurance applications to be accepted only from holders of licences

Selling offences

Payment of commission to unlicensed agents prohibited

Persons who may negotiate settlement of personal injury claim

Prohibition of unlicensed adjusters

181-185

Repealed

Division 3 — Reciprocal Exchanges for Insurance

Interpretation

Permit for reciprocal insurance

Division 4 — Mutual Fire Insurance Companies

Definition

Application

Division 5 — Societies Engaged in Insurance

Definition of society

Deemed business authorization for certain existing societies

Provisions applicable

Certain other existing societies exempt

When society not entitled to receive business authorization

Actuarial certificates

Limit of insurance money payable

Amendment of charter

197.1

Consent required for alteration to constitution or bylaws or for amalgamation of authorized society

Society operating outside British Columbia

Societies

Provisions applicable to certain societies

Part 7 — Administration of the Regulation of Financial Institutions

Division 1 — BC Financial Services Authority

BC Financial Services Authority

201.1

Rules of the Authority

201.2

Procedures for rules

201.3

Regulation prevails over rule

202-202.1

Repealed

Panels

204-205

Repealed

Requirement to insure

Superintendent of Financial Institutions

Power to require undertakings and make agreements

Capacity outside British Columbia

Examinations, audits, inspections

Superintendent may require information

211.1

Requirement for notice of action outside British Columbia

Examination

Inquiries

Division 1.1 — Special Examinations and Investigations

213.1

Definitions

Special examination

Investigation

215.1

Extrajurisdictional evidence

215.2

Extrajurisdictional request for evidence

Witnesses in a special examination or investigation

216.1

Powers of entry

216.2

Warrant to enter residence

216.3

Powers on inspection

216.4

Certified copies of records as evidence

216.5

Obstructing or interfering with inspection

216.6

Immunities on special examination or investigation

Division 1.2 — Information and Records

Extension of time

Confidential information

218.1

Privileged information — supervisory information

218.2

Privileged information — self-evaluative compliance audits

Agreements with other jurisdictions

219.01

Agreement with other authorities and market conduct database administrator

219.1

Collecting and sharing information respecting financial institutions

219.2

Collecting personal information

Division 2 — Insurance Council of British Columbia

Establishment of the Insurance Council of British Columbia

Alternates

Executive director

Committees

Voting

Meetings

225.1

Rules of council

225.2

Procedures for and availability of rules

225.3

Regulation prevails over council rule

Administrative policies

Duties of council

228-229

Repealed

Effect of a transfer of powers to superintendent

Council may suspend, cancel or restrict licences and impose fines

Investigation

232.1

Witnesses on an investigation

232.2

Powers of entry

232.3

Warrant to enter residence

232.4

Powers on investigation

232.5

Certified copies of records as evidence

232.6

Obstructing or interfering with investigation

233-234

Repealed

Division 3 — Hearings and Appeals

Orders, consents and refusals to be in writing

Power to impose conditions

Hearing requirements

Summary procedure — superintendent or council

238.1

Summary procedure — superintendent or Authority

Public hearing

Witnesses at hearings

Costs of investigation

241.1

Assessment of costs

Appeal from a decision of the superintendent or council

242.1

Financial Services Tribunal

242.2

Practice and procedure

242.3

Judicial review

242.4

Appeal from a decision of the Authority

Personal liability protection

Part 8 — Sanctions

Division 1 — General Sanctions

Authority's order to cease or remedy

Order to freeze property

Order for compliance

Valuation of assets and insurance contracts

Supervision of central credit union

Revocation of business authorization

Notice of revocation of business authorization

Court order to appoint receiver, etc.

Division 2 — Offences and Penalties

Offences

Penalties

253.1

Administrative penalties

253.2

Limitation on proceedings

253.3

Failure to pay administrative penalty

Remedies preserved

Limitation period

Court order to comply

Restitution

Innocent third parties

Remedy of irregularities

Part 9 — Deposit Insurance and Stabilization of Credit Unions

Definitions and

interpretation for Part

Division 1 — Credit Union Deposit Insurance Corporation of British Columbia

Credit Union Deposit Insurance Corporation of British Columbia

General powers of the deposit insurance corporation

Accounting records

Appointment of auditor

Auditor's report

Division 2 — Deposit Insurance

Guarantee of credit union deposits

Fund

Contributions to fund

Issue of debentures

Redemption of debentures

Fund impaired

Investment by deposit insurance corporation

Acts not applicable

Fund protection symbol

Division 3 — Stabilization

Supervision of credit union

Duration of supervision

Orders in relation to credit union that is subject to supervision

277.1

Additional circumstances in which

section 277 (2) orders may be made

277.2

Assistance to administrator in relation to

section 277 (2) orders

Administrator's powers

Administrator

Financial assistance

Division 4 — Stabilization Authority

Stabilization authority defined

Designation

Mandatory membership

Revocation of stabilization authority status and delegated powers

Superintendent may delegate to stabilization authority

Repealed

Advance from fund to stabilization authority

Annual report of stabilization authority

Part 10 — Regulations and Transition

Division 1 — Regulations

Regulations

Transfer of disciplinary powers

Division 2 — Transitional Provisions

Validity of loans

Validity of credit union amalgamations before June 25, 1975

Variation of agreements

Part 11 — Review of Act

Review of Act

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