The federal government has published proposed regulations that would make the regulatory regime more flexible, allowing bank holding companies to be established.

The proposed regulations set out the requirements for the contents of a bank’s restructuring proposal, the process for shareholders’ approval and the process for Finance Minister’s approval. As well, the regulations allow a bank to bundle a number of transactions into a proposal and request a single ministerial approval.

The proposal may include transactions that establish a holding company, set up subsidiaries of the holding company, transfer assets between subsidiaries, and bring in outside investment into non-bank subsidiaries.

However, major transactions, such as a change in ultimate ownership of a bank or bank holding company, would not be part of any proposal and would need to be brought to the Finance Minister under the normal Bank Act rules.

If the Finance Minister gives effect to the proposal, no additional ministerial approvals under the Bank Act would be required.

Superintendent approvals and any approvals under other federal financial institutions statutes would still be necessary, but would be reviewed concurrently and administratively streamlined.