Canada Introduces New Financial Institution Legislation

On November 23, 2011, the Government of Canada introduced a bill known as the Financial System Review Act¹. The related announcement of the Department of Finance stated that this proposed legislation is designed to help ensure the continued strength and stability of Canada's financial system. Key highlights of the Financial System Review Act include:

• medium and large financial institutions would require the approval of the Minister of Finance for any foreign control acquisition that would, in the aggregate with its other foreign control acquisitions over the preceding 12-month period, exceed 10% of the institution's total consolidated assets as reported prior to such 12-month period (under the current legislation only a prudential review by the Office of the Superintendent of Financial Institutions is required);