On November 24, 2007, Canada’s federal Department of Finance announced proposed new regulations under the Bank Act, Cooperative Credit Associations Act and Trust and Loan Companies Act that will apply to Principal Protected Notes (PPNs). As reported in the Canada Gazette, the new regulations would define PPNs and specify “the content, manner and timing of disclosure that federally regulated deposit-taking institutions are required to provide at the point of sale for various sales channels” as well as other consumer-related requirements. The proposal is part of the federal government’s “Advantage Canada” competitiveness program, designed to promote flexible outcomes-focussed approaches to regulation in response to rapid developments in global financial markets. Those wishing to comment have 30 days from the date of publication to respond.
The draft regulation is available online in the Canada Gazette, Part I for November 24, 2007, beginning on page 3279.