Application

This section applies to the following legal persons that wish to obtain an authorization to carry on deposit institution activities in Québec in accordance with the DIDPA, as defined in section 24:

  • Insurers authorized under the Insurers Act, CQLR, c. A-32.1 (“IA”), other than a self-regulatory organization, a reciprocal union or Lloyd’s (s. 24, 1st par. (1) DIDPA);
  • Financial services cooperatives within the meaning of the Act respecting financial services cooperatives, CQLR, c. C-67.3 (“AFSC”) (s. 24, 1st par. (2) DIDPA);
  • Trust companies authorized under the Trust Companies and Savings Companies Act, CQLR, c. S-29.02 (“TCSCA”) (s. 24, 1st par. (3) DIDPA);
  • Business corporations regulated by Title III of the TCSCA that are not authorized, under that Act, to carry on the activities of a trust company (s. 24, 1st par. (4) DIDPA);
  • Cooperatives established under the laws of a jurisdiction other than Québec and whose mission is similar to that of a financial services cooperative covered by an agreement under section 56.2 DIDPA (s. 24, 1st par. (5) DIDPA);
  • Legal persons, other than cooperatives referred to in the previous subparagraph, established under the laws of a jurisdiction other than Québec and that have the capacity to receive deposits of money from the public (s. 24, 1st par. (6) DIDPA);
  • Other legal persons constituted under an Act of Québec determined by regulation, except cooperatives within the meaning of the Cooperatives Act, CQLR, c. C-67.2 (s. 24, 1st par. (7) DIDPA).

The provisions relating to an application for authorization are found in sections 27 to 28.3 of the Deposit Institutions and Deposit Protection ActThis link will open in a new window, CQLR, c. I-13.2.2 (“DIDPA”).

Obligation to be authorized

Section 23 DIDPA provides that, except in the case of a bank listed in Schedule I or II to the Bank Act (S. C., 1991, chapter 46), the AMF’s authorization is required to carry on deposit institution activities in Québec.

Deposit institution activities consist in soliciting and receiving deposits of money from the public (s. 1.0.1 DIDPA).

The DIDPA applies to all deposits of money made in Québec (s. 1.1, 1st par. DIDPA). However, it does not apply to the following deposits, funds, sums or instruments:

  • Deposits made with banks that are not member institutions of the Canada Deposit Insurance Corporation (“CDIC”) established by the Canada Deposit Insurance Corporation Act (R.S.C., 1985, chapter C-3) (s. 1.1, 2nd par. (2) DIDPA);
  • Deposits whose term exceeds that prescribed by the regulations (s. 1.1, 2nd par. (3) DIDPA);
  • Funds obtained at the time of an issue of securities in accordance with the Securities Act, CQLR, c. V-1.1, unless otherwise provided by the regulations (s. 1.1, 2nd par. (4) DIDPA);
  • Sums payable under an insurance or annuity contract issued by an insurer carrying on business in Québec, in accordance with the IA (s. 1.1, 2nd par. (5) DIDPA);
  • A promissory note payable in one year or less and, if distributed to a natural person, evidencing a debt of $50,000 or more (s. 1.1, 2nd par. (6) DIDPA);
  • Any other deposit determined by regulation (s. 1.1, 2nd par. (7) DIDPA).

Pursuant to section 4 of the RADIDPA, a deposit of money is deemed to be made at the place where the funds are received by the depositary, subject to the provisions of subparagraphs 1 to 5 of the same section.

The deposit of money

Under the first paragraph of section 1 of Regulation respecting the application of the Deposit Institutions and Deposit Protection Act This link will open in a new window, CQLR, c. I-13.2.2, r.1 (“RADIDPA”), the term “deposit of money” means the unpaid balance, including interest thereon, of funds received by a deposit institution or a bank in the normal course of receiving cash deposits from the public for investment, account transaction and safe-keeping purposes, where the obligation of the deposit institution or bank to repay is evidenced by a credit to the depositor’s account, by a deposit certificate or by any other document issued by the deposit institution or bank. Exceptions are provided in paragraph 2 of the same section. Also refer to section 2 of the RADIDPA, which supplements this definition.

Application for authorization

Under the first paragraph of section 27 DIDPA, a legal person that intends to carry on deposit institution activities is responsible for filing an application with the AMF for its authorization, when required.

An applicant must show that it is able to comply with the applicable provisions of the DIDPA (s. 27, 2nd par. DIDPA).

The applicant must also hold at least $5 million in capital, except if the applicant is an insurer authorized under the IA, a financial services cooperatives within the meaning of the AFSC or a trust company authorized under the TCSCA (as these institutions are already subject to capital adequacy requirements (s. 24, 2nd par. DIDPA).

The information to be included in and documents to be enclosed with the application for authorization vary by type of applicant. If the applicant is an authorized financial institution referred to in any of subparagraphs 1 to 3 of the first paragraph of section 24 DIDPA, the information and documents are those referred to in sections 27.2 and 27.4 DIDPA. For other applicants (those referred to in any of subparagraphs 4 to 7 of the first paragraph of section 24 DIDPA), the information and documents are those referred to in the 3rd paragraph of section 27 and section 27.3 DIDPA.

You are invited to consult the section: “Obligations of authorized deposit institutions” » before your application.

Checklists

The following checklists describe the information to be included in, and documents to be enclosed with, the application for authorization by type of applicant:

  • Legal persons referred to in subparagraphs 1 to 3 of the first paragraph of section 24 DIDPA, i.e.:
    • Insurers authorized under the IA, other than a self-regulatory organization, a reciprocal union or Lloyd’s;
    • Financial services cooperatives within the meaning of the AFSC;
    • Trust companies authorized under the TCSC.
  • Legal persons referred to in subparagraphs 4 to 7 of the first paragraph of section 24 DIDPA, i.e.:
    • Business corporations regulated by Title III of the TCSCA that are not authorized, under that Act, to carry on the activities of a trust company;
    • Cooperatives established under the laws of a jurisdiction other than Québec and whose mission is similar to that of a financial services cooperative covered by an agreement under section 56.2 DIDPA;
    • Legal persons, other than cooperatives referred to in the previous point, established under the laws of a jurisdiction other than Québec and that have the capacity to receive deposits of money from the public;
    • Other legal persons constituted under an Act of Québec determined by regulation, except cooperatives within the meaning of the AFSC.

Legal persons referred to in subparagraphs 1 to 3 of the first paragraph of section 24 DIDPA

Contents of the application for authorization

Information/Document Source Clarification by the AMF
1. The applicant must show that it is able to comply with the applicable provisions of the DIDPA; s. 27, 2nd par. DIDPA The AMF assesses the application and required documents to determine if the information is satisfactory.
2. The applicant must provide the following information: s. 27.2 DIDPA n/a
 
2.1 If applicable, the conditions and restrictions it wishes to have attached to the authorization;
 
s. 27.2(1) and s. 27, 3rd par. (2) DIDPA n/a
 
2.2 If applicable, the name and address of the attorney designated under section 26 of the Act respecting the legal publicity of enterprises This link will open in a new window, CQLR, c P-44.1 (“Legal Publicity Act”);
 
s. 27.2(2) and s. 27, 3rd par. (6) DIDPA Consult the information in the AMF’s Register – Insurers, Deposit Institutions and Trust Companie and indicate if changes need to be made.
 
2.3 The information required to update the other information contained in the register provided for in section 32.9 DIDPA.
 
s. 27.2(3) DIDPA Consult the information in the AMF’s Register – Insurers, Deposit Institutions and Trust Companies and indicate if changes need to be made.

Documents to be enclosed with the application for authorization

Information/Document Source Clarification by the AMF
1. A copy of the applicant’s constituting act; s. 27.4 and s. 27.3(3) DIDPA n/a
2. A copy of the applicant’s by-laws or of any other document established for the same purposes; s. 27.4 and s. 27.3(3) DIDPA n/a
3. The applicant must also provide the documents and information set out in s. 6 of the RADIDPA, i.e.: s. 27.4 and s. 27.3(5) DIDPA; s. 6, 1st par. RADIDPA These documents and information must be dated within no more than 12 months prior to the date on which the applicant provides the AMF with the final information to complete the application (s. 6, 2nd par. RADIDPA).
 
3.1 An insurance certificate attesting that the applicant holds fidelity insurance;
 
s. 6, 1st par. (1) RADIDPA The applicant must show that it holds sufficient insurance given the importance of its deposit activities.
 
3.2 Where applicable, a detailed statement of deposits of money that it holds outside Québec;
 
s. 6, 1st par. (2) RADIDPA Use the Declaration of guaranteed deposits (xlsx - 99 KB)This link will open in a new windowUpdated on 6 May 2019Formulaire de déclaration des dépôts garantis avec prime et sans prime.
 
3.3 A copy of the resolution of the board of directors authorizing the applicant to apply to the AMF for an authorization to carry on deposit institution activities in Québec;
 
s. 6, 1st par. (3) RADIDPA n/a
 
3.4 A business plan covering a minimum period of three years, setting out its planned deposit institution activities for Québec and detailing, in particular:
 
s. 6, 1st par. (4) RADIDPA The business plan must also cover the savings products offered, target market, distribution network, and the terms and places of deposit receipt (in-branch, on-line or through dealers).
 
 
3.4.1 The legal person’s financial capacity, including its current financial position and its financial forecasts related to the planned activities;
 
 
s. 6, 1st par. (4)(a) RADIDPA n/a
 
 
3.4.2 Its business strategy;
 
 
s. 6, 1st par. (4)(b) RADIDPA In connection with the deposit institution activities.
 
 
3.4.3 Its management and governance practices;
 
 
s. 6, 1st par. (4)(c) RADIDPA In connection with the deposit institution activities.
 
 
3.4.4 Its commercial practices;
 
 
s. 6, 1st par. (4)(d) RADIDPA In connection with the deposit institution activities.
 
 
3.4.5 The policies and procedures established to ensure compliance with the laws, regulations and guidelines applicable to it;
 
 
s. 6, 1st par. (4)(e) RADIDPA In connection with the deposit institution activities.
 
3.5 Where applicable, its most recent annual report;
 
s. 6, 1st par. (5) RADIDPA Attach this document only if it has not already been filed with the AMF.
 
3.6 A statement signed by a person authorized to do so within the legal person regarding compliance with the laws, regulations and guidelines applicable to the legal person;
 
s. 6, 1st par. (6) RADIDPA n/a
4. The fees and charges prescribed by government regulation. s. 27.4 and s. 27.3(6) DIDPA Refer to the Fees and costs payable to the AMF section.

Legal persons referred to in subparagraphs 4 to 7 of the first paragraph of section 24 DIDPA

Contents of the application for authorization

Information/Document Source Clarification by the AMF
1. The applicant must show that it has at least $5 million in capital; s. 24, 2nd par. DIDPA n/a
2. The applicant must show that it is able to comply with the applicable provisions of the DIDPA; s. 27, 2nd par. DIDPA The AMF assesses the application and required documents to determine if the information is satisfactory.
3. The applicant must provide the following information: s. 27, 3rd par. DIDPA n/a
 
3.1 Its name and the name it intends to use in Québec if different;
 
s. 27, 3rd par. (1) DIDPA n/a
 
3.2 The address of its head office and, if the latter is not in Québec, the proposed address of its principal establishment in Québec, if any;
 
s. 27, 3rd par. (1) DIDPA If there is no establishment in Québec, an attorney must be designated (also see 3.7 below).
 
3.3 If applicable, the conditions and restrictions it wishes to have attached to the authorization;
 
s. 27, 3rd par. (2) DIDPA n/a
 
3.4 A description of its financial structure;
 
s. 27, 3rd par. (3) DIDPA Attach an organization chart of the applicant’s comprehensive ownership structure (including the parent, all members of the group and ownership percentages). Also see 3.8 below for financial groups.
 
3.5 If applicable, the name and address of each holder of a significant interest in its decisions, as well as a description of that interest;
 
s. 27, 3rd par. (4) DIDPA n/a
 
3.6 If the applicant is not constituted under the laws of Québec, the name of the regulatory authority of its domicile (home regulator) (i.e., under s. 27.1 DIDPA, the competent authority with respect to the legal person’s deposit institution activities, under the laws of the jurisdiction whose legislation governs the legal person’s constituting act);
 
s. 27, 3rd par. (5) DIDPA n/a
 
3.7 If applicable, the name and address of the attorney designated under section 26 of the Legal Publicity Act This link will open in a new window.
 
s. 27, 3rd par. (6) DIDPA Section 26 of the Legal Publicity Act states: “A registrant who is neither domiciled nor has an establishment in Québec must designate an attorney residing in Québec, unless exempted from that requirement by regulation of the Minister.”
 
3.8 If it belongs to a financial group, the name under which the group is known, if any, and, if applicable, the names of the other financial institutions that belong to the group;
 
s. 27, 3rd par. (7) DIDPA Refer to ss. 1.2, 1.3 and 1.4 LIDPD for the definition of “financial institution”; refer to s. 1.12 DIDPA for the definition of “financial group.” This information must appear in the organization chart (see 3.4 above).
 
3.9 The other information prescribed by regulation of the AMF;
 
s. 27, 3rd par. (8) DIDPA; s. 6, 1st par. RADIDPA See No. 7 of the following “Documents to be enclosed with the application for authorization” section.
 
3.10 The name and address of the auditor designated under section 28.61 DIDPA.
 
s. 32.9, 1st par. (4) DIDPA Refer to s. 28.60 DIDPA for the auditor’s qualifications. Add telephone no. and e-mail address.

Documents to be enclosed with the application for authorization

Information/Document Source Clarification by the AMF
1. A list of the applicant’s directors and officers, including their names and domiciliary addresses; s. 27.3(1) DIDPA Also provide a senior management organization chart.
2. The résumé of each director and officer; s. 27.3(2) DIDPA n/a
3. A copy of the applicant’s constituting act; s. 27.3(3) DIDPA n/a
4. A copy of the applicant’s by-laws or of any other document established for the same purposes; s. 27.3(3) DIDPA n/a
5. If applicable, a copy of the applicant’s audited financial statements for its most recent fiscal year ended, to the extent and in the manner that may be determined by regulation of the AMF; s. 27.3(4) DIDPA n/a
6. If applicable, the financial statements that the applicant is required to file with its home regulator, to the extent and in the manner that may be determined by regulation of the AMF; s. 27.3(4) DIDPA n/a
7. The applicant must also provide the documents and information set out in s. 6 of the RADIDPA, i.e.: s. 27.3(5) DIDPA; s. 6, 1st par. RADIDPA These documents and information must be dated within no more than 12 months prior to the date on which the applicant provides the AMF with the final information to complete the application. (s. 6, 2nd par. RADIDPA).
 
7.1 An insurance certificate attesting that the applicant holds fidelity insurance;
 
s. 6, 1st par. (1) RADIDPA The applicant must show that it holds sufficient insurance given the importance of its deposit activities.
 
7.2 Where applicable, a detailed statement of deposits of money that it holds outside Québec;
 
s. 6, 1st par. (2) RADIDPA Use the Declaration of Guaranteed Deposits (xlsx - 99 KB)This link will open in a new windowUpdated on 6 May 2019Formulaire de déclaration des dépôts garantis avec prime et sans prime.
 
7.3 A copy of the resolution of the board of directors authorizing the applicant to apply to the AMF for an authorization to carry on deposit institution activities in Québec;
 
s. 6, 1st par. (3) RADIDPA n/a
 
7.4 A business plan covering a minimum period of three years, setting out its planned deposit institution activities for Québec and detailing, in particular:
 
s. 6, 1st par. (4) RADIDPA The business plan must also cover the savings products offered, target market, distribution network, and the terms and places of deposit receipt (in-branch, on-line or through dealers).
 
 
7.4.1 The legal person’s financial capacity, including its current financial position and its financial forecasts related to the planned activities;
 
 
s. 6, 1st par. (4)(a) RADIDPA n/a
 
 
7.4.2 Its business strategy;
 
 
s. 6, 1st par. (4)(b) RADIDPA In connection with the deposit institution activities.
 
 
7.4.3 Its management and governance practices;
 
 
s. 6, 1st par. (4)(c) RADIDPA In connection with the deposit institution activities.
 
 
7.4.4 Its commercial practices;
 
 
s. 6, 1st par. (4)(d) RADIDPA In connection with the deposit institution activities.
 
 
7.4.5 The policies and procedures established to ensure compliance with the laws, regulations and guidelines applicable to it;
 
 
s. 6, 1st par. (4)(e) RADIDPA In connection with the deposit institution activities.
 
7.5 Where applicable, its most recent annual report;
 
s. 6, 1st par. (5) RADIDPA Attach this document only if it has not already been filed with the AMF.
 
7.6 A statement signed by a person authorized to do so within the legal person regarding compliance with the laws, regulations and guidelines applicable to the legal person;
 
s. 6, 1st par. (6) RADIDPA n/a
8. The investment policy; s. 28.29 DIDPA n/a
9. The fees and charges prescribed by government regulation. s. 27.4 and s. 27.3(6) DIDPA Refer to the Fees and costs payable to the AMF section.

Granting of authorization

Section 28 DIDPA sets out the conditions that must be met in order for the AMF to grant its authorization to an applicant:

  • The applicant has provided the information and documents required under the DIDPA and has paid the fees and charges payable (s. 28(1) DIDPA;
  • In the AMF’s opinion,
    • The applicant has shown that it is able to comply with the applicable provisions of the DIDPA (s. 28(2)(a) DIDPA;
    • There are no serious reasons to believe that a holder of a significant interest in the applicant’s decisions is likely to interfere with the applicant’s adherence to sound commercial practices or sound and prudent management practices (s. 28(2)(b) DIDPA;
    • The applicant’s name is not misleading (s. 28(2)(c) DIDPA.

Section 28.1 DIDPA provides that the AMF may, in granting its authorization, require any undertaking or attach conditions and restrictions it considers necessary to ensure compliance with the DIDPA.

Lastly, according to section 28.2 DIDPA, the authorization entails, for the authorized deposit institution, the obligation to maintain its existence until the full and final revocation of that authorization.

The AMF notifies the applicant in writing of its decision (s. 28.3, 1st par. DIDPA). When it refuses to grant its authorization or grants it but attaches condition and restrictions, the AMF must notify the prior notice prescribed by section 5 of the Act respecting administrative justice, CQLR, c. J-3, to the applicant in writing and grant the latter at least 10 days to submit observations, unless the conditions or restrictions are attached at the applicant’s request (s. 28.3, 2nd par. DIDPA).

Fees and costs payable

Refer to the complete list of fees and costs payable to the AMF for more information.

Processing time

Except in specific circumstances, the AMF will grant an authorization to carry on deposit institution activities within 180 days from the date the application is complete.

Insight

Did you know

The AMF no longer issues licences in paper format as was the case under the Deposit Insurance Act. Since the coming into force of the Deposit Institutions and Deposit Protection Act on June 13, 2019, the concept of “licence” no longer exists and was replaced by the concept of “authorization to carry on deposition institution activities in Québec.”.

Authorized deposit institutions are listed in the AMF’s Register – Insurers, Deposit Institutions and Trust CompaniesThe information contained in this register is public information; it may be set up against third persons as of the date it is entered and is proof of its contents for the benefit of third persons in good faith (s. 32.9, 2nd par. DIDPA).

End of the insight