The Negative Option Billing Regulations under Canada’s Bank Act, which are scheduled to come into force on August 1, 2012, will require federallyregulated financial institutions (“FRFIs”) as well as the affiliates they control or agents of such FRFIs or affiliates to offer new retail products and services on an opt-in basis only. Customers must first be provided with certain prescribed information in a manner that is clear, simple, and not misleading, and thereafter must provide their express consent before the product or service is provided. The simple use of a product or service does not constitute express consent. These regulations prescribe a 30-day written notice requirement for any changes in the terms and conditions that govern the optional product or service and mandate certain disclosure in connection with promotional, preferential, introductory or special offers. Other than as provided in connection with a credit agreement, FRFIs will be required to specify certain cancellation rights that customers have in connection with ongoing products and services in any disclosure statement made in relation to such products and services and, once a notice of cancellation is provided, return to the customer a portion of any paid for products and services that were unused based on the formula set out in the regulations.