EXTENSION OF DIVESTITURE PERIOD FOR CONTROL OR HOLDING A SUBSTANTIAL INVESTMENT BY A FOREIGN BANK OR ENTITY ASSOCIATED WITH A FOREIGN BANK OBTAINED AS A RESULT OF REALIZATION OF A SECURITY INTEREST OR A LOAN DEFAULT

Document Properties

  • Type of Publication: Transaction Instructions
  • Revised: April 2009
  • Index A No: 15
  • Category: Non Deemed Approval

Legislative Authorities

  • subsections 522.15(2) and 522.15(3) of the Bank Act

Information Requirements

The applicant is generally expected to provide:

  1. where the request for the proposed extension is for a specified period:

    1. business rationale for requesting the extension and the plan for divestiture,

    2. details relating to the acquisition of control of, or the holding of a substantial investment in, the entity, including the date of the acquisition, a list of the entity’s majority shareholders, a description of the debt restructuring, if applicable, and

    3. a description of the current and proposed business activities, and the most recent financial statements of the entity;

  2. where the application is for a further extension period, the reasons the plan for divestiture did not occur and a revised plan for divestiture; and

  3. where the proposed extension is for an indeterminate period, refer to the information requirements set out in the documents A No. 7.0 to 7.3 and 7.5, which can be found in this series of Instruction Guides.

Administrative Guidance

This guidance note is applicable to a foreign bank or entity associated with a foreign bank to which Part XII of the Bank Act applies, pursuant to section 508, and that has a financial establishment in Canada.

An extension may be subject to terms and conditions that the Minister considers necessary.

The information requirements and administrative guidance are intended to satisfy typical applications. They have been derived from OSFI’s experience in assessing applications. Applicants who provide all information and material requested can generally expect a more timely assessment of their applications. As appropriate to the circumstances, OSFI may request additional information, take into account other matters, impose terms and conditions, or require undertakings.