An Act to amend the Bank Act (compensation for investment advice)

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Tony Martin  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Introduced, as of June 16, 2010
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Bank Act to prohibit banks and authorized foreign banks, subsidiaries of banks and authorized foreign banks, and employees or representatives thereof from receiving any compensation from a person or entity in return for recommending that a customer of the bank or authorized foreign bank or subsidiary purchase an investment product sold by that person or entity.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Bank Act
Routine Proceedings

June 16th, 2010 / 3:25 p.m.
See context

NDP

Thomas Mulcair Outremont, QC

moved for leave to introduce Bill C-546, An Act to amend the Bank Act (compensation for investment advice).

Mr. Speaker, the purpose of this bill is to avoid a flagrant conflict of interest that costs Canadians a lot of money every year. This bill would prohibit banks, subsidiaries and their representatives from receiving any compensation from a person or entity in return for recommending that a customer of the bank or its subsidiaries purchase an investment product sold by that person or entity.

For investment products, such as stocks, bonds, mutual funds, index funds, hedge funds, and derivatives such as options or futures, there are harsh penalties for individuals, and there are even harsher ones for a legal entity, in other words the bank itself.

I hope to have the support of all members.

(Motions deemed adopted, bill read the first time and printed)