What changed

Issuance

• (1)

  An institution shall, before entering into an agreement with a person for the issuance of a deposit-type instrument, a principal-protected note or a prescribed product, disclose to the person (a) the term of the product, how and when the principal is to be repaid and how and when the interest, if any, is to be paid; (b) if the rate of interest in respect of the product is fixed, the annual rate of interest or, if the rate of interest is variable, (i) how the rate of interest is determined, (ii) the prime lending rate or the bankers’ acceptanceinterest rate benchmark, as the case may be, that is used for the calculation of the rate of interest, (iii) the prime lending rate or the banker’s acceptanceinterest rate benchmark in effect when the information is disclosed, and (iv) how the person may obtain the rate of interest from the institution during the investment period; (c) any charges applicable to the product and their impact on the interest payable; (d) how interest is accrued and any limitations in respect of the interest payable; (e) any risks associated with the product, including, if applicable, the risk that no interest may accrue; (f) if the product relates to a deposit that is not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation, the fact that it is not eligible; (g) whether the person may cancel their purchase of the product and, if so, how the purchase may be cancelled; (h) whether the proposed agreement provides that the institution may amend a term or condition with respect to the product and, if so, in what circumstances; (i) whether the manner in which the product is structured or administered may place the institution in a conflict of interest; (j) any other information that could reasonably be expected to affect the person’s decision to enter into the agreement; and (k) any prescribed information.

• (b)

  if the rate of interest in respect of the product is fixed, the annual rate of interest or, if the rate of interest is variable, (i) how the rate of interest is determined, (ii) the prime lending rate or the bankers’ acceptanceinterest rate benchmark, as the case may be, that is used for the calculation of the rate of interest, (iii) the prime lending rate or the banker’s acceptanceinterest rate benchmark in effect when the information is disclosed, and (iv) how the person may obtain the rate of interest from the institution during the investment period;

• (ii)

  the prime lending rate or the bankers’ acceptanceinterest rate benchmark, as the case may be, that is used for the calculation of the rate of interest,

• (iii)

  the prime lending rate or the banker’s acceptanceinterest rate benchmark in effect when the information is disclosed, and

Sunset provision

• (1)

  Subject to subsections (2) and (4), bank holding companies shall not carry on business after June 30, 20252026.