Consolidated TPP Text – Annex III – Schedule of Canada

Introductory Notes

1. For Canada, in the interpretation of a reservation in Section A, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken. To the extent that:

2. For Canada, in the interpretation of a reservation in Section B, all elements of the reservation shall be considered. The Description element shall prevail over all other elements.

Headnotes

1. Commitments under this Agreement, in the subsectors listed in this Schedule, are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. To clarify Canada’s commitment with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Canada are subject to non-discriminatory limitations on juridical form.Footnote 1

3. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

4. For greater certainty, limitations on the participation of foreign capital in terms of maximum percentage limits on foreign shareholding or the total value of individual or aggregate foreign investment should not be considered a limitation to Article 11.5 (Market Access for Financial Institutions).

Section A

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)
Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Bank Act s. 159, 749
Insurance Companies Act s. 167, 796
Trust and Loan Companies Act s. 163
Foreign Institutions Subject to the Canadian Residency Requirements Regulations (Insurance Companies)
Foreign Institutions Subject to the Canadian Residency Requirements Regulations (Trust and Loan Companies)
Cooperative Credit Association Act s. 169

Description: A minimum of one half of the directors of a federally-regulated financial institution that is a subsidiary of a foreign institution and a majority of the directors of any other federally-regulated financial institution must be either Canadian citizens ordinarily resident in Canada or permanent residents ordinarily resident in Canada.


Sector: Financial Services

Sub-Sector:Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 524

Description: In order to establish a bank branch, a foreign bank must be a bank in the jurisdiction under whose laws it is incorporated.


Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 520, 524, 540, 545
Sales or Trades (Authorized Foreign Banks) Regulations

Description: A foreign bank must establish a subsidiary as a condition for accepting retail deposits. Foreign lending branches may not accept deposits.


Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Trust and Loan Companies Act
Bank Act
Cooperative Credit Associations Act
Insurance Companies Act

Description: Federal laws do not permit a trust and loan company, credit union or fraternal benefit society in Canada to be established through branches of corporations organised under a foreign country’s law.


Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 510, 522.16, 524
Insurance Companies Act s. 574, 581

Description: A bank branch must be established directly under the authorised foreign bank incorporated in the jurisdiction where the authorised foreign bank principally carries on business.

A foreign entity authorised to insure, in Canada, risks must be established directly under the foreign insurance company incorporated in the jurisdiction where the foreign insurance company, either directly or through a subsidiary, principally carries on business.


Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)

Level of Government: Central               

Measures: Bank Act s. 520, 540, 545
Bank Act sch. I, II
Canadian Deposit Insurance Corporation Act s. 2, 8, 17

Description: Full service foreign bank branches and lending foreign bank branches are prohibited from becoming member institutions of the Canadian Deposit Insurance Corporation.


Sector: Financial Services

Sub-Sector: Banking and Other Financial Services (Excluding Insurance)

Obligations Concerned: National Treatment (Article 11.3)
Market Access for Financial Institutions (Article 11.5)

Level of Government: Central                               

Measures: Canadian Payments Act s. 2, 4
Bank Act s. 524, 540

Description: Lending branches of foreign banks are prohibited from being members of the Canadian Payments Association.


Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)
Most Favoured Nation Treatment (Article 11.4)
Cross-Border Trade (Article 11.6)
Senior Management and Boards of Directors (Article 11.9)

Level of Government: Regional

Measures: -

Description: All existing non-conforming measures of all provinces and territories.

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Regional

Description: Canada reserves the right to adopt or maintain any measure that is not inconsistent with Canada’s obligations under Article XVI of GATS.

Existing Measures: -


Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: With regard to the Canada Mortgage and Housing Corporation and its subsidiaries, Canada reserves the right to adopt or maintain any measure that grants advantages to that entity or any new, reorganised or transferee entity having similar functions and objectives with respect to housing finance.

Existing Measures: -

Date Modified: