Cindy Y. Zhang September 27 2022 Financial institutions legislative and regulatory reporter Borden Ladner Gervais LLP | Banking & Financial Services - Canada Cindy Y. Zhang Banking & Financial Services This article provides a monthly summary of British Columbia's legislative and regulatory developments of relevance to provincially regulated financial institutions. It does not address Canadian federal financial services legislative and regulatory developments. In addition, purely technical and administrative changes (eg, changes to reporting forms) are not covered.The following table shows the BC Financial Services Authority (BCFSA) developments from May and June 2022.Date publishedTitle and summaryEffective date29 June 2022Legislative amendments were passed in fall 2019 to modernise the Financial Institutions Act established the requirement for insurers to adopt and comply with a code of market conduct. The BCFSA has released a draft Insurer Code of Market Conduct and Supplemental Guideline and accompanying Discussion Paper for review and comment. The code sets out fundamental principles and desired outcomes providing insurers with the latitude to "determine the strategies, policies, processes, procedures and controls in a risk-based and proportionate manner to achieve fair treatment of customers". Once formally established, all British Columbia insurers will be required to adopt and comply with the code.Comment by 6 August 202216 June 2022The BCFSA has issued a Home Warranty Claims and Complaints Management Guideline outlining expectations for all home warranty insurers authorised in British Columbia in response to ongoing claims and complaints handling issues. The guideline addresses three areas where home warranty insurers should strengthen their processes and practices:management's oversight of claims and complaint handling;claims and complaints handling policies and procedures; andclaims and complaint file maintenance.The BCFSA expects that all property and casualty insurance companies consider the guideline when setting or revising their claims and complaints management policies and processes.Effective 16 June 202225 May 2022The BCFSA has announced the delivery of its report, Enhancing Consumer Protection in B.C.'s Real Estate Market, to the minister of finance. The report contains advice on potential considerations of the government's proposed homebuyer protection period, commonly referred to as the cooling-off period, for residential real estate sales, as well as advice on additional consumer protection measures. The following table shows the legislative developments from May and June 2022.Date publishedTitle and summaryEffective date2 June 2022The Professional Governance Amendment Act 2022, SBC 2022, c 19 (Bill 21), received royal assent on 2 June 2022. The act is aimed at increasing consistency and improving best practices among registered professions in the province. Under section 142.1 of the Business Practices and Consumer Protection Act, the government may designate specific activities for the purposes of the act, with certain exceptions. Bill 21 exempts activities in relation to the Professional Governance Act (except section 3 of Schedule 1 of the act, which deals with applied science technologists and technicians of British Columbia) from the application of this provision.Effective 2 June 20222 June 2022The Miscellaneous Statutes Amendment Act 2022, Chapter 14 (Bill 17), which amends Business Practices And Consumer Protection Act, received royal assent. Deposited 17 February 2022The Financial Institutions Amendment Act 2019, SBC 2019, c 39, sections 14 and 79(a) have been proclaimed in force on 30 June 2022. Section 14 adds sections 94.1, 94.2 and 94.3 to the Financial Institutions Act – these sections require insurance companies and credit unions to adopt and comply with codes of market conduct. They also require credit unions to establish procedures for dealing with complaints. Section 79(a) allows the Governor in Council to make regulations requiring a credit union or extra-provincial credit union to be a member of a prescribed organisation to deal with complaints that are not dealt with to the satisfaction of complainants under section 94.3.Effective 30 June 2022Deposited 17 February 2022The Credit Union Complaint Resolution Regulation (BC Regulation 34/2022) requires that a credit union and an extra-provincial credit union must be a member of the Ombudsman for Banking Services and Investments to deal with complaints that are not dealt with to the satisfaction of complainants under section 94.3 of the Financial Institutions Act.Effective 30 June 2022Deposited 17 February 2022BC Regulation 32/2022 amends the Trust and Deposit Business Exemption Regulation (BC Regulation 173/2008) by repealing the form that is part of the regulation and providing that the form referred to in section 3(c)(i) is the "form established by the superintendent".Effective 1 June 2022 The following table shows the developments from March and April 2022.Date publishedTitle and summaryEffective date25 April 2022Bill 21: Professional Governance Amendment Act 2022 (3rd Session, 42nd Parliament (2022) was introduced, amending:the Professional Governance Act [SBC 2018] c 47;the Business Practices and Consumer Protection Act [SBC 2004] c 2;the Interpretation Act [RSBC 1996] c 238;the Water Sustainability Act [SBC 2014] c 15; andthe Business Practices and Consumer Protection Act [SBC 2004] c 2. 25 April 2022Bill 6: Budget Measures Implementation Act 2022 (3rd Session, 42nd Parliament) received its third reading on 25 April 2022 and is now partially in force. Acts affected by the Budget Measures Implementation Act 2022 are:the Balanced Budget and Ministerial Accountability Act;the Budget Transparency and Accountability Act;the Carbon Tax Act;the Employer Health Tax Act;the Financial Administration Act;the Home Owner Grant Act;the Income Tax Act;the Insurance Premium Tax Act;the Land Tax Deferment Act;the Logging Tax Act;the Mineral Tax Act;the Motor Fuel Tax Act;the Property Transfer Tax Act;the Provincial Sales Tax Act;the School Act;the Speculation and Vacancy Tax Act; andthe Tobacco Tax Act.Partially in force from 25 April 2022Volume CLXII, 2022, No. 13, 31 March 2022The Maa-Nulth First Nations Tax Treatment Agreement Amendment Agreement (No. 2) was published. For reference, the amendment agreement was dated 12 July 2021. The following are the amendments to BC regulations from March and April 2022.Date publishedTitle and summaryEffective date30 March 2022Gender-based words were removed from hundreds of provincial regulations.The provincial government issued Orders in Council 157/2022 and 158/2022, which amends many regulations by replacing gendered language with non-gendered alternatives. 30 March 2022BC Regulation 76/2022 amends BC Regulation 273/2004 (the Disclosure of the Cost of Consumer Credit Regulation) and 57/2009 (the Payday Loans Regulation). The relevant statutory authority is the Business Practices, and the Order in Council is Order in Council No. 157/2022 of 30 March 2022.Effective 30 March 202230 March 2022BC Regulation 76/2022 amends BC Regulation 308/90 (the Credit Union Directors Election Regulation). The relevant statutory authority is the Credit Union Incorporation Act and the Order in Council is Order in Council No. 157/2022 of 30 March 2022.Effective 30 March 202230 March 2022BC Regulation 76/2022 amends BC Regulation 366/2007 (the Insurer Exemption Regulation). The relevant statutory authority is the Financial Institutions Act, and the Order in Council is Order in Council No. 157/2022 of 30 March 2022.Effective 30 March 2022 For further information on this topic please contact Cindy Y Zhang at Borden Ladner Gervais LLP by telephone (+1 416 367 6000) or email ([email protected]). The Borden Ladner Gervais LLP website can be accessed at www.blg.com.