Bill 19 — Second Session, 22Nd Legislature, 39 Elizabetii Ii the Legislative Assembly of Alberta Bill 19 Financial Consumers Act (Legislature 22, Session 2)

L22 S2 2694

Alberta — Bills

1990 BILL 19 Second Session, 22nd Legislature, 39 Elizabetii II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 19 FINANCIAL CONSUMERS ACT THE MINISTER OF CONSUMER AND CORPORATE AFFAIRS Fkst Reading Second Reading Committee of tiie Whole Thkd Readmg Royal Assent

Bill 19 BILL 19 1990 FINANCIAL CONSUMERS ACT (Assented to , 1990) Table of Contents PARTI PURPOSE, APPLICATION AND EXEMPTIONS Purpose statement ^

Definitions 2 Application 3 Exemptions 4

PART 2 RESPONSIBIUTIES OF CONSUMERS AND DUTIES OF SUPPLIERS, AGENTS AND FINANCIAL PLANNERS Division 1 Responsibilities of consumers Consumers' responsibilities before investing Consumers' responsibilities after investing Effect of consumers' failure to fulfil responsibilities Division 2 Duties of suppliers, agents and financial planners Duty to provide appropriate advice or product 8 Duty of financial plaimer 9 Duty to provide information about named financial products 10 Duty to provide infonnation about registered plans 11 Duty to provide financial statements 12 Duty to use plain language 13 Duty to provide copies of documents 14 Terminology 15 Prohibited busuiess practices 16 Payment for named financial products 17

Use of personal financial uiformation 18 Right to cancel some named financial products 19 Effect of failure by supplier, agent or fmancial planner to carry out duties 20

PART 3 FINANCIAL PLANNERS Licensing of financial planners 21

PART 4 DISPUTE RESOLUTION Division 1 Arbitration and court proceedings Requkement for arbittation clause 22 Appoinunent of arbitrator 23 Arbittation award 24 Startmg court proceedmgs 25 Matters tiiat tiie courts and arbittators must consider 26 Court proceedings by a consumer organization 27 Division 2 Proceedings Initiated by the Director Investigative powers of tiie Dkector 28 Order to enter and search 29 Effect of an entty and search order 30 Appeal of entty and search order 31 Undertakings 32 Dkector's order 33 Appeal of Dkector's order 34 Court proceedmgs started by tiie Dkector 35 Court order protecting funds 36 PARTS PREVENTING AVOIDANCE AND OFFENCES AND PENALTIES Division 1 Preventing avoidance Avoidmg tiiis Act 37 Failiu-e does not permit avoidance 38 Effect of tills Act 39

Division 2 Offences and penalties Offences 40 Penalty for mdividuals 42 Penalty for corporations 42

PART 6 REGULATORY BOARDS Regulatory boards 43 By-laws of regulatory board 44 Report 45

PART 7 ADMINISTRATIVE MATTERS Delegation of Dkector's duties 46 Evidence 47 Regulations 48 Coming into force 49

Schedule HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as foUows: PARTI PURPOSE, APPLICATION AND EXEMPTIONS Purpose statement 1

(1) The purpose of this Act is (

a) to require suppUers, agents and financial planners to disclose to consumers important information about named financial products described in

section 2(i), (

b) to inform consumers that they have responsibUities as well as rights when they invest in named financial products, (

c) to set standards for persons who caU themselves financial planners.

(

d) to make a variety of remedies avaUable so that disputes about named financial products can be resolved efficientiy and effectively, and (

e) to encourage the use of readily understandable language in the financial marketplace.

(2) The purpose statement is to be used to help interpret tiiis Act and to guide those who make decisions under it

Definitions 2 In diis Act, (a) "Act" includes regulations made under diis Act; (b) "agent" means a person who seUs or offers to seU to consmners named financial products not of tiiat person's own issue; (c) "commission" means compensation, reward or benefit, but does not include salary; (d) "consumer" means an individual; (e) "Dkector" means die individual appointed as die Dkector for this Act; (f) "financial planner" means a person referred to in

section 21; (g) "financial planning" means reviewing, analyzing or organizing personal financial information for the purpose of preparing a plan to manage a consumer's financial affaks; (h) "Mmister" means tiie member of tiie Executive CouncU charged by the Lieutenant Govemor in CouncU witii the administiation of this Act; (1) "named financial product" means any of the following: (

i) life insmance as defined in die Insurance Act; (ii) an account on which interest is payable by a bank, tieasiuy branch, credit union, trust company or securities dealer or by any other person listed in regulations; (iu) a mutual fund unit which is a security that entitles die holder to receive, on demand or within a specified

period after demand, an amount computed by reference to tiie value of a proportionate interest in tiie whole or in a part of tiie net assets, including a separate fund or tiust account, of the issuer of the securities; (iv) an investinent on which a specified rate of interest is paid or guaranteed, commonly known as an "investtnent certificate", "guaranteed investment certificate" or "term deposit", but does not mclude govemment or corporate bonds, tieasury biUs or shares; (

v) an investinent described in regulations; (j) "supplier" means a person who seUs or offers to seU to consumers named financial products of tiiat person's own issue, and includes the employees of a supplier. Application 3

(1) This Act appUes (

a) when a supplier, agent or financial planner is a resident of Alberta regardless of the residence of tiie consumer, (

b) when advice is given, or business is solicited or ttansacted, in Alberta relating to a named financial product, regardless of the residence of the parties to the advice, solicitation or tiansaction, and (

c) to advice given and investments made on or after the date this Act comes into force.

(2) If a suppUer, agent or financial planner acts in more than one of those capacities, the provisions of this Act relevant to each of those capacities apply to tiiat person. Exemptions The Lieutenant Govemor in Council may, by regulation, exempt from tiie application of aU or any provision of tiiis Act (

a) a supplier, agent or financial planner, or (

b) a named financial product or any class or type of named financial product.

PART 2 RESPONSIBILITIES OF CONSUMERS AND DUTIES OF SUPPLIERS, AGENTS AND FINANCIAL PLANNERS Division 1 Responsibilities of Consumers Consumers' responsibilities before investing 5

(1) A consumer must provide information that tiie consumer knows or should know is relevant to or would have a significant effect on advice provided to the consumer by a supplier, agent or financial planner about named financial products.

(2) Before investing in a named financial product, a consumer is responsible (

a) for becoming reasonably well informed about it, (

b) for obtaining and reviewing information about it, and (

c) for making a sensible decision about investing in it. Consumers' responsibilities after investing 6 After investing in a named financial product, a consumer who becomes aware of a contiavention of this Act by a suppUer, agent or financial planner that causes a loss to the consumer (

a) must tiy to minimize the loss, and (

b) must promptly tiy to resolve tiie matter with the supplier, agent or financial planner who the consumer thinks is responsible for the loss. Effect of consumers' failure to fulfil responsibilities 7 FaUure by a consumer to fulfil the responsibUities referred to in tills Division is to be taken into account in assessing or apportioning damages in claims for loss under tiiis Act.

Division 2 Duties of Suppliers, Agents and Financial Planners Duty to provide appropriate advice or product 8 A supplier, agent or financial planner must give appropriate advice or provide an appropriate named financial product to a consumer when die consumer tells die supplier, agent or financial planner (

a) why the consumer needs die advice, or (

b) what purpose die consumer intends to achieve by investing in a named financial product. Duty of financial planner 9

(1) Before a financial planner does financial planning for a consumer, die financial planner must tell the consumer (

a) the cost of the financial planner's services, and (

b) any other information tiiat die financial planner is requked by regulation to tell die consumer.

(2) Before a financial planner gives advice to a consumer, the financial planner must tell the consumer (

a) whether the financial planner receives a commission for giving advice about, or as a result of an investment by the consumer in, named financial products or any other financial products, (

b) if there is anything in the relationship the financial planner has with a suppUer, an agent or another financial planner that could cause the financial planner to be in a conflict of interest in his deaUngs with the consumer, and (

c) any other information that the financial planner is requked by regulation to tell the consumer. Duty to provide information about named financial products 10

(1) Before investing in a named financial product, a consumer must be told the foUowing information: (

a) the supplier's name and, on request, the suppUer's business address.

(

b) die names and business addresses of die agent or financial planner, or both, where the consumer is deaUng witii one or bodi of diem, (

c) if there is an existing plan under which the consumer can be compensated for a loss relating to a named financial product, how die consumer can obtain information about the plan, (

d) if diere is a right to cancel an agreement about an investment in a named financial product, how and when die right can be exercised, (

e) if the named financial product can be redeemed or surrendered before the end of its term, the cost and procedure for doing so, (

f) that the individual with whom tiie consumer is dealing receives a commission, if that individual does receive a commission, (

g) if tiie named financial product is Ufe insurance, the premium payable, (

h) if the named financial product is a mutual fund, the cost of pmchase, die doUar amount of the commission and any other fees that are payable by the consumer, (

i) any other information that a supplier, agent or financial planner is requked by regulation to tell a consumer, and (

j) that the consumer has the right to receive in writing any of the information disclosed according to tiiis section.

(2) If the consumer requests that the information be in writing, it must be provided within a reasonable time.

(3) The information must be given to the consumer (

a) by die agent if the consumer is deaUng witii an agent or by the financial planner if the consumer is dealing witii a financial planner, or (

b) by the suppUer if tiie consumer is not deaUng with an agent or financial planner.

Duty to provide Information about registered plans 11

(1) The Lieutenant Govemor in CouncU may make regulations respecting information diat must be given to consumers about the following plans: (

a) a registered retirement savings plan; (

b) a registered education savings plan; (

c) a registered retkement income fund; (

d) any other plan described in regulations.

(2) The regulations can describe how the information must be given and the persons who are responsible for giving the information. Duty to provide financial statements 12

(1) If financial statements are requked by law, a supplier must provide to the consumer, on request and free of charge, (

a) the most recent audited financial statement of tiie suppUer witii the auditor's report about it, and (

b) the most recent quarterly or half-yearly financial statement of the suppUer.

(2) A credit union that receives a request for an audited financial statement may give to the consumer the most recent financial statement referred to in

section 82(l)(

b) of the Credit Union Act. Duty to use plain language 13

(1) The following documents must be in readUy understandable language and form: (

a) application forms for consumers who wish to invest in named financial products; (

b) agreements setting out the terms and conditions of named financial products; (

c) any information provided to a consumer under

section 10(2) or 11(1); (

d) any other documents described in regulations.

(2) Subsection (1) does not apply to words or forms of documents tiiat are requked by law.

(3) Proof tiiat reasonable efforts have been made to comply and maintain compUance witii subsection (1) is a complete defence (

a) in a prosecution under subsection (1), or (

b) in a dispute about whetiier subsection (1) has been compUed witii. Duty to provide copies of documents 14

(1) When a consumer signs a document at the request of a supplier, agent or financial planner, the consumer must be told tiiat he can receive a copy.

(2) If a consumer requests a copy, the person asking the consumer to sign the document must provide the copy. Terminology 15 The Lieutenant Govemor in Council may make regulations (

a) definmg words that can be used by suppliers, agents and financial planners in relation to financial planning or named financial products; (

b) placing resttictions on the use of those words when tiiey relate to financial planning or named financial products. Proiiibited business practices 16 SuppUers, agents and fmancial planners must not (

a) put undue pressme on consumers to invest in named financial products, (

b) take unfak advantage of consumers, (

c) make representations or conduct themselves in a way tiiat could mislead or deceive consumers, or (

d) witiihold information about named financial products or about a suppUer, agent or financial planner if they know or should know tiiat consumers might be misled by not having the information. 10

Payment for named financial products 17

(1) An agent must not accept payment from a consumer for a named financial product unless it is a cheque, money order or other negotiable instmment payable to the suppUer, (2) Subsection (1) does not apply to an agent or class of agents described in regulations. Use of personal financial information 18

(1) Personal financial information given by a consumer to a supplier, agent or financial planner for the purpose of obtaining advice about or investing in named financial products can only be used for the purpose for which it is given unless the consumer specifically consents to another use.

(2) The consumer's consent to another use must (

a) be written, (

b) be clearly identifiable by the consumer, and (

c) specifically state the information to be released, tiie purpose of the release and the person to whom the information is to be released.

(3) This

section does not apply if die personal financial information is given (

a) to a credit grantor as defined in die Consumer Credit Transactions Act to determine the credit worthiness of tiiat consumer, (

b) to a credit bmeau or similar office to determine the credit worthiness of tiiat consumer, or (

c) to anotiier person as required by law.

(4) An application by a consumer for an mvestinent in a named financial product must not be refused because die consumer refuses to provide a consent under subsection (2). Rigiit to cancel some named financial products 19 The Lieutenant Govemor in Council may make regulations (

a) listing named financial products tiiat may be cancelled; 11

(

b) respecting the particular ckcumstances that would allow a named financial product to be cancelled; (

c) describing the conditions under which a named financial product may be cancelled. Effect of failure by supplier, agent or financial planner to carry out duties 20 FaUme by a supplier, agent or financial planner to carry out the duties described in this Act (

a) is to be taken into account in assessing or apportioning damages in claims for loss imder this Act, and (

b) may be the subject of proceedings under Parts 4 and 5.

PART 3 FINANCIAL PLANNERS Licensing of financial planners 21 A financial planner is a person who is licensed to do financial planning under regulations made under the Licensing of Trades and Businesses Act.

PART 4 DISPUTE RESOLUTION Division 1 Arbitration and Court Proceedings Requirement for arbitration clause 22 (1) Every agreement between (

a) consumers and suppliers about named financial products, (

b) consumers and agents about named financial products, and (

c) consumers and financial planners about advice about named financial products or any other fmancial products 12

must include a provision stating that after a dispute arises, unless the parties agree in writing to start court proceedings instead of arbitration proceedings, die parties must arbitiate a dispute about a loss resulting because this Act was not complied with, and that the Arbitration Act wiU apply.

(2) If an agreement referred to in subsection (1) does not include an arbitration clause, tiie model arbitiation clause set out in the

Schedule that is in force at the time a notice to arbitiate is served is part of die agreement. Appointment of arbitrator 23

(1) If the Dkector receives a notice to appoint an arbitiator under the model arbitiation clause or an arbitiation clause referred to in

section 22(1), the Dkector must appoint an arbiu-ator and notify the parties of the name of the arbitiator witiiin 14 days of receiving the notice.

(2) The Dkector can enter into an agreement regarding the appointment of arbittators and the administtation of arbitiation clauses. Arbitration award 24

(1) As soon as possible after making an award, an arbitiator appointed under this Act must file a copy of the award witii the Dkector.

(2) An award can be inspected by the public at reasonable times unless botii parties to the arbitration request tiie Director to keep it confidential, m which case the Dkector must decide whether to make all or part of the award pubUc. Starting court proceedings 25

(1) After a dispute arises about a loss resulting because this Act was not compUed widi, die parties may agree in writing to start court proceedings mstead of arbitiation proceedings.

(2) If court proceedings are started, a claim can be filed (

a) in The Civil Division of The Provincial Comt of Alberta, if the amount claimed does not exceed the Umit set by

section 36 of die Provincial Court Act, or (

b) in die Court of Queen's Bench. 13

(3) A copy of the claim must be served on die Dkector before any further step is taken. Matters that the courts and arbitrators must consider 26

(1) A court or an arbitiator must consider (

a) whetiier each party to tiie dispute has complied with tiiis Act and, if not, why not, (

b) the degree to which each party has faded to comply witii this Act, (

c) the abiUty of each party to eliminate or minimize the loss, and (

d) any otiier factors that tiie court or the arbitiator considers appropriate.

(2) Based on the factors described in subsection (1), the court or an arbitrator can make a decision and can, if appropriate, apportion the damages and any costs awarded. Court proceedings by a consumer organization 27

(1) In this section, "consumer organization" means a corporation tiiat has as its primary objective the protection or advancement of tiie interests of consumers and that is not incorporated for the purpose of acquiring financial gain for its members.

(2) A consumer organization can start proceedings in the Court of Queen's Bench against a supplier, agent or financial planner in respect of an activity that die consumer organization alleges contravenes this Act.

(3) A consumer organization does not need to have an interest in or be affected by die subject matter of the proceedings in order to start proceedings under subsection (2).

(4) When proceedings are started under diis section, the court may order a consumer organization to give security for the costs of the proceedings in an amount the court considers proper.

(5) If a consumer organization is successful in its claim, the court may do any or all of the foUowing: (

a) declare that die supplier, agent or financial planner has contiavened diis Act; 14

(b) ^ant an injunction restiaining die suppUer, agent or financial planner from engaging in die activity or a simUar activity tiiat would or could contravene this Act; (

c) award costs. Division 2 Proceedings initiated by the Director Investigative powers of the Director 28

(1) If die Director has reason to beUeve that this Act is not being compUed with, the Dkector must carry out an inquiry or investigation to determine whether tiiis Act has been contiavened.

(2) In the comse of an inquiry or investigation, the Director can requke a person (

a) to give written replies to questions, and (

b) to give the Director any information that the Dkector considers necessary for the inquiry or investigation. Order to enter and search 29

(1) If tiie Dkector has reason to believe that this Act is not being compUed with, the Dkector can apply to tiie Provincial Court for an order autiiorizing the Dkector to enter and search anywhere for evidence tiiat this Act has been contiavened or of die extent of the conttavention.

(2) The application can be made without notice to any person.

(3) The court may make any order it considers appropriate, witii or without conditions. Effect of an entry and search order 30

(1) If an entiy and search order is made, die Dkector can look at, take away, take extiacts from or copy anything relevant to tiie search.

(2) The Dkector must give to tiie person who is in contiol of the premises tiiat have been entered and searched a receipt for anytiiing taken away after a search and must rettun the original as soon as possible after it is removed. 15

(3) If die Dkector keeps die original of anytiiing, tiie Dkector must aUow die owner of die tiling to have reasonable access to it. Appeal of entry and search order 31

(1) A person can apply to the Court of Queen's Bench (

a) to have the order changed or canceUed, or (

b) for an order declaring that die entiy and search order was improperly made.

(2) The court may make any order it considers appropriate, witii or without conditions. Undertakings 32

(1) In this section, "undertaking" means a binding written commitment to tiie Dkector by a supplier, agent or financial planner.

(2) When tiie Dkector is of the opinion that a supplier, agent or financial planner is not complying with tiiis Act, the supplier, agent or financial planner, as the case may be, can enter into an undertaking with the Dkector,

(3) An undertaking can include any of die following agreements: (

a) to stop engaging in the practice described in the undertaking or to change the practice; (

b) to provide compensation to consumers who have incurred a loss; (

c) to pubUcize the undertaking or the action being taken to stop or change a former practice; (

d) to pay the costs of the Dkector's investigation and any costs associated with the undertaking; or any other provision that the Director and die supplier, agent or financial planner, as the case may be, agree on.

(4) The content and form of an undertaking must be satisfactory to the Dkector.

(5) The Dkector must keep a public record of undertakings given under diis section. 16

Director's order 33

(1) If die Dkector has reason to beUeve that this Act is not being compUed widi, the Dkector can make an order dkecting a supplier, agent or financial planner to stop engaging in the practice described m the order or to change the practice.

(2) Information about die right to appeal a Dkector's order must be included in the order.

(3) The Dkector must serve a copy of an order made under this

section on the person who is die subject of the order. Appeal of Director's order 34

(1) A person who is affected by an order of the Dkector made under

section 33 can appeal the order to the Court of Queen's Bench witiiin 30 days of service of the order on that person.

(2) The court may confirm, change or cancel the order on any terms or conditions it considers appropriate.

(3) The court may, on appUcation, suspend aU or part of the operation of the order on any condition it considers appropriate, pending the outcome of an appeal tmder this section. Court proceedings started by the Director 35

(1) The Dkector can start legal proceedings in the Comt of Queen's Bench against a supplier, agent or financial planner if the Dkector has reason to believe that die suppUer, agent or financial planner has not compUed witii this Act, an undertaking given under

section 32 or a Dkecttjr's order made under

section 33.

(2) In proceedings under this section, the court may make any order it considers appropriate taking into consideration (

a) the purposes of this Act, (

b) the responsibilities and rights of persons under this Act, (

c) the need to protect die pubUc against unfak business practices, and (

d) when appropriate, die need to award punitive damages. 17

Court order protecting funds 36

(1) If a supplier or agent has been paid money by a consumer for a named financial product or if a financial planner has been paid money by a consumer for financial planning and (

a) the supplier, agent or financial planner has absconded from Alberta, or (

b) the Dkector has reason to believe that the supplier, agent or financial planner (

i) is about to abscond from Alberta, (ii) has attempted to remove any property from Alberta in order to avoid legal UabiUties, (iu) has attempted to sell or dispose of property in order to avoid legal liabilities, or (iv) is misusing money or other assets paid or deUvered to him by a consumer, the Dkector can, whether or not any other action has been taken under this Act, apply to the Court of Queen's Bench for an order under subsection (2), without notice to the person affected by the order.

(2) The comt may make one or more of the following orders: (

a) an order prohibiting any person who has on deposit or under contiol or for safekeeping any money, property or otiier assets on behalf of the supplier, agent or financial planner from dispersing or otherwise deaUng with the money, property or other assets, except as approved by the court; (

b) an order appointing a tmstee or receiver, or botii, to hold or take possession of tiie money, property or other assets of the supplier, agent or financial planner on any terms and conditions the comt approves; (

c) an order dkecting die supplier, agent or financial planner not to disperse any money or deal witii any property or assets, except as approved by the comt or as directed by die tiiistee or receiver.

(3) The court may make an order under tiiis

section on any terms and conditions the comt considers appropriate. 18

(4) Any persoii who is affected by an order made under this

section can, on notice to tiie Dkector, apply to the court to have the order changed or canceUed.

(5) The court may refuse die application or may change or cancel the order on any terms and conditions it considers appropriate.

(6) In tills section, "suppUer" does not include (

a) a ttust company as defined in tiie Trust Companies Act, (

b) a credit union as defined in die Credit Union Act, (

c) a tieasury branch, or (

d) a bank as defined in die Bank Act (Canada). PARTS PREVENTING AVOIDANCE AND OFFENCES AND PENALTIES Division 1 Preventing Avoidance Avoiding this Act 37

(1) No person can release or waive a right, benefit or requkement of this Act.

(2) Any attempt to release or waive a right, benefit or requkement of this Act is invalid. Failure does not permit avoidance 38 The failme of one person to comply with this Act does not relieve any other person from complying with this Act. Effect of this Act 39

(1) This Act does not affect otiier legal rights or obligations.

(2) A faUme to comply witii this Act does not, by itself, invalidate an agreement about a named financial product. 19

Division 2 Offences and Penalties Offences 40

(1) A person is guUty of an offence who (

a) contiavenes

section 9, 10, 12, 13, 17 or 18, (

b) contiavenes a regulation made under

section 11 or 15(b), (

c) interferes witii an inquiry or investigation under

section 28, (

d) faUs to comply with an undertaking given under

section 32, or (

e) faUs to comply with a Dkector's order made under

section 33.

(2) A prosecution under subsection (1) can be commenced not more than 2 years after the commission of the offence. Penalty for individuals 41 An individual who is guilty of an offence is Uable to a fine not exceeding (a) $10 000, or (b) 3 times the loss incurred by a consumer as a result of the contiavention, whichever is greater, and in default of payment to imprisonment for not more tiian 12 months. Penalty for corporations 42

(1) A corporation tiiat is guilty of an offence is Uable to a fine not exceeding (a) $100 000, or (b) 3 times the loss incurred by a consumer as a result of the contiavention, whichever is greater. 20

(2) If a corporation has failed to comply with this Act, every officer, dkector, employee or otiier person who directed, authorized, assented to, knowingly acquiesced in or knowingly participated in die faUme is also guilty of an offence and is liable to a fine not exceeding (a) $10 000, or (b) 3 times the loss incurred by a consumer as a result of the contiavention, whichever is greater, whether or not die corporation has been prosecuted or convicted for the failme.

PART 6 REGULATORY BOARDS Regulatory boards 43

(1) The Lieutenant Govemor in Council may establish regulatory boards consisting of the members appointed by the Lieutenant Govemor in Council.

(2) The Lieutenant Govemor in Council may provide for the number of members of a regulatory board, die metiiod of appointment of the members, the terms of office of the members and the fiUing of vacancies.

(3) A regidatory board estabUshed under this

section is a corporation.

(4) A regulatory board must exercise the powers, duties and functions delegated to it under

section 46. By-laws of regulatory board 44

(1) A regulatory board can make by-laws respecting (

a) die conduct of die business and affaks of the board; (

b) the calUng of meetings of the members and conduct of business at tiiose meetings; (

c) the appointment, removal, functions, powers, duties, remuneration and benefits of members, officers and employees of the board; 21

(

d) the delegation to officers of tiie board or any committee of it any powers of the board required to manage the business and affaks of die board, except the power to make by-laws; (

e) the estabUshment, membership, duties and functions of special, standing and otiier committees.

(2) A by-law made by a regulatory board is not effective until it is approved by the Dkector.

(3) The Regulations Act does not apply to a by-law of a board. Report 45 A regulatory board must provide the Minister with any reports requked by regulation.

PART 7 ADMINISTRATIVE MATTERS Delegation of Director's duties 46

(1) The Minister may, in writing and with or witiiout conditions, (

a) delegate to an individual or a regulatory board under tiiis Act or any other Act or regulation any power, duty or function of the Dkector under this Act, and (

b) amend or revoke a delegation under this subsection.

(2) With the approval of the Minister, the Dkector can, in writing and witii or witiiout conditions, (

a) delegate to a regulatory board under this Act or any otiier Act or regulation any or aU of his powers, duties or functions under this Act, and (

b) amend or revoke a delegation under this subsection. Evidence 47 Copies of anythmg taken under an entty and search order under this Act that are certified by die Dkector as trae copies can be admitted in any court or arbitiation proceedings as sufficient proof of the original without proof of die signatme or appointment of tiie Dkector. 22

Regulations 48 The Lieutenant Govemor in Council may make regulations (

a) listing persons who issue accounts on which interest is payable for the purpose of

section 2(i)(ii); (

b) describing invesunents tiiat are named financial products; (

c) respecting information that a financial planner must tell a consumer under

section 9; (

d) respecting information that a supplier, agent or financial planner must tell a consumer under

section 10(1); (

e) describmg documents tiiat must be in readily understandable language and form; (

f) describing "readily understandable language and form"; (

g) describmg an agent or class of agents for the purpose of

section 17(2); (

h) respecting the reports tiiat a regulatory board must provide; (!) definmg any word or phrase used in this Act that is not defined in this Act; (

j) amending tiie Schedule. Coming into force 49 This Act comes into force on Proclamation. 23

SCHEDULE Model Arbitration Clause Dispute to be resolved by the parties if possible 1 If a dispute arises about whether loss has resulted to one of us because the other did not follow the Financial Consumers Act (Alberta) or the regulations made under it, we agree to tty to resolve die dispute ourselves. Notice to arbitrate 2 (

a) If we cannot resolve tiie dispute, eitiier of us can serve on the other a written notice to arbitiate. (

b) A notice to arbitiate must (

i) describe what the claim is about and tiie remedy sought, and (ii) give the name of the person proposed as a single arbitrator or state tiiat the Dkector must appoint tiie arbitrator, in which case a copy of the notice to arbitrate must be sent to the Director. Reply to the notice to arbitrate 3 Whoever receives the notice to arbitiate must notify the other, within 7 days of receiving the notice, (

a) diat die proposed arbitiator is acceptable, or (

b) that the proposed arbitrator is not acceptable, in which case a copy of the notice to arbitiate and the reply must be sent to the Dkector. Jurisdiction of arbitrator 4 (

a) The arbitiator has jurisdiction as soon as the appointtnent is accepted. (

b) The arbitiator must inquke into die claim and any matters relating to it. (

c) The award is binding on us and die arbitiator need not give reasons for die award. 24

(

d) The Arbitration Act (Alberta) and Alberta law apply to arbitrations under this model arbitiation clause, except as modified by the Financial Consumers Act (Alberta) and this model arbitiation clause. Agreement that model clause does not apply 5 This model arbitiation clause does not apply if, after a dispute arises, we agree in writing tiiat the dispute is not to be resolved by arbitration proceedings under this model arbittation clause.

Definitions 6 (

a) In this model arbittation clause, (!) "Dkector" means the Dkector under the Financial Consumers Act (Alberta); (ii) "we" and "us" mean the parties to whom this clause applies under

section 22(2), of the Financial Consumers Act (Alberta). (

b) References to the Financial Consumers Act (Alberta) and to regulations under that Act are to that Act and the regulations as amended from time to time. 25 Title: 1990 (22nd 2nd) Bill 19, Financial Consumers Act

Document details

Collection	Alberta — Bills
Citation	L22 S2 2694
Type	bill
Volume / chapter	L22 S2 2694
Language	en
Format	json
Source	PROVINCIAL
Identifier	e4dc0882d37ae78b3a234414286a6bd2ac84fcd2

Source file is stored in the law ingest library (json).