Innovation FCU, Asset Releases, RBC–HSBC Amalgamation

Summary#

This Canada Gazette page (Part I, Vol. 157, No. 26, published July 1, 2023) lists several short notices from financial institutions and insurers. It announces a designated legal service address for Innovation Federal Credit Union, plans by PACIFIC LIFE RE LIMITED and United American Insurance Company to apply to release assets held in Canada, and a proposed amalgamation involving Royal Bank of Canada and HSBC Bank Canada.

What it does#

• Innovation Federal Credit Union names an office where enforcement notices can be served for all provinces and territories: P.O. Box 1090 Station Main, 198 1st Avenue NE, Swift Current, Saskatchewan S9H 3X3.

• PACIFIC LIFE RE LIMITED says it will apply to the Superintendent of Financial Institutions for permission to release the assets it holds in Canada under the Insurance Companies Act (Canada). The application is planned for August 3, 2023. Policyholders or creditors were invited to file opposition with the Office of the Superintendent by that date.

• United American Insurance Company says it will apply for a similar order to release assets held in Canada under the Insurance Companies Act (Canada) on or after July 22, 2023. Policyholders or creditors were invited to file opposition by July 22, 2023.

• Royal Bank of Canada, HSBC Bank Canada, HSBC Trust Company (Canada), HSBC Mortgage Corporation (Canada) and HSBC Finance Mortgages Inc. say they intend to apply for letters patent to amalgamate the listed corporations into one bank under the name Royal Bank of Canada (French: Banque Royale du Canada). That joint application to the Minister of Finance is planned for on or after July 8, 2023 and is conditional on Royal Bank of Canada completing a planned share acquisition of HSBC Bank Canada (share purchase agreement dated November 29, 2022). The proposed head office would be in Montréal, Quebec. If the acquisition does not complete, the amalgamation will not proceed.

Who's affected#

• Customers and members of Innovation Federal Credit Union may notice the new address for legal notices.

• Policyholders and creditors of PACIFIC LIFE RE LIMITED and United American Insurance Company in Canada are directly affected because those notices relate to the companies’ plans to release the assets they hold in Canada. Those people were given a chance to oppose the releases by the dates listed.

• Customers, employees, and other stakeholders of Royal Bank of Canada and HSBC Bank Canada could be affected if the planned acquisition and the proposed amalgamation go ahead. The notice does not make the change final; it says the amalgamation depends on further approvals.

• It is unclear whether other groups (for example, branch communities or smaller suppliers) will be affected; the notices do not spell out specific operational changes.

Why it matters#

• The designated office for Innovation Federal Credit Union is a procedural step that tells people where to send enforcement or legal notices. That matters mainly in legal or enforcement situations.

• Notices about releasing assets by PACIFIC LIFE RE LIMITED and United American Insurance Company can signal big changes for those insurers’ Canadian business. If assets are released, it can affect how policy claims are paid or how creditors are treated. Affected people were given a clear date to file objections.

• The proposed amalgamation of Royal Bank of Canada and HSBC Bank Canada, if it happens, would combine two major banks under one corporate structure and name. That could change where decisions are made (the stated head office would be in Montréal), and it could have future effects on customers, staff, competition, and services — but nothing is final until regulators approve the acquisition and the Minister of Finance issues letters patent.