Société Générale (Canada) to cease bank status

Summary#

A notice in the Canada Gazette says Société Générale (Canada) intends to apply to stop being a bank under the Bank Act and to continue instead as a numbered corporation under the Canada Business Corporations Act. The company said it will apply on or after March 16, 2021, and the notice was published on February 20, 2021. Approval is not guaranteed and will depend on the Minister of Finance’s review.

What it does#

• Asks for permission to obtain a certificate of continuance under the Canada Business Corporations Act, which would make the company a numbered corporation rather than a bank.
• Seeks discontinuance of the company’s status as a bank under the Bank Act.
• States the application will be made on or after March 16, 2021, and that publication of the notice does not mean approval will be granted.

Who's affected#

• Société Générale (Canada) itself (its legal status would change if the application is approved).
• Likely to matter to the company’s customers, employees, creditors, shareholders and regulators — the notice does not list specific groups, so the full set of affected parties is not spelled out.

Why it matters#

• Changing from a bank under the Bank Act to a corporation under the Canada Business Corporations Act would shift which federal rules and which regulator oversee the company.
• That shift can affect who supervises the company and which laws apply to its operations. The notice does not say what specific operational or customer-facing changes (if any) would follow; those would depend on the outcome and any follow-up actions.