The Trust and Loan Corporations Act, 1997 provides the legislative framework for the regulation of trust corporations, loan corporations and financing corporations.
A trust corporation accepts deposits from the public or performs traditional trust functions.
A loan corporation accepts deposits from the public and lends money to the public, deals in or purchases mortgages on real property, and deals in accounts receivable or has as its primary business the granting of revolving credit.
A financing corporation lends money to the public, deals in or purchases mortgages on real property, and deals in accounts receivable or has as its primary business the granting of revolving credit.
- adopts many provisions of the federal Trust and Loan Companies Act;
- sets out standards and requirements that must be met by trust, loan and financing corporations, including capital and liquidity requirements, rules regarding self-dealing and investment standards;
- requires corporations that take deposits from the public to be members of the Canada Deposit Insurance Corporation (CDIC); and
- outlines restrictions with respect to transacting insurance, fiduciary activities, transferring shares and personal property leasing.
The Act also requires loan brokers operating in Saskatchewan to be registered. The Act:
- defines a loan broker as a person who carries on the business of assisting consumers to obtain loans;
- requires loan brokers to provide potential clients with a written statement that clearly sets out the amount of the loan to be obtained and the date by which the loan is expected to be made; and
- prohibits loan brokers from requiring or accepting any payment from a consumer until the consumer has actually received the proceeds of the loan.
The Act describes the responsibilities, obligations and powers of the Superintendent of Financial Institutions. The Superintendent:
- administers the Act;
- licenses trust, loan and financing corporations that operate in Saskatchewan;
- registers loan brokers that operate in Saskatchewan;
- maintains a record of all trust, loan and financing corporations licensed in Saskatchewan and all loan brokers registered in Saskatchewan;
- investigates consumer complaints;
- conducts examinations and investigations to ensure compliance with the Act; and
- carries out any necessary enforcement of the Act.
Regulations governing market conduct have not yet been passed.