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).

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.

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.

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.