Pacific Life Re asset release and RBC–HSBC merger

Summary#

This Canada Gazette entry contains two short notices. One says Pacific Life Re Limited plans to ask the federal regulator to allow it to release the assets it holds in Canada. The other says Royal Bank of Canada and several HSBC-related Canadian entities intend to apply to merge into a single bank under the Royal Bank of Canada name, if a planned share purchase goes ahead.

What it does#

• Pacific Life Re Limited

  • Intends to apply to the Superintendent of Financial Institutions (Canada) on August 3, 2023 for an order allowing it to release the assets it maintains in Canada under the Insurance Companies Act.
  • Invites any policyholder or creditor of its Canadian insurance business to file an opposition by mail to the Office of the Superintendent of Financial Institutions (Canada), Regulatory Affairs Division, 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email to approvals-approbations@osfi-bsif.gc.ca on or before August 3, 2023.

• Royal Bank of Canada and HSBC entities

  • Royal Bank of Canada, HSBC Bank Canada, HSBC Trust Company (Canada), HSBC Mortgage Corporation (Canada), and HSBC Finance Mortgages Inc. intend to apply to the Minister of Finance on or after July 8, 2023 for letters patent of amalgamation under the Bank Act.
  • The plan is to continue as one bank under the name Royal Bank of Canada (French: Banque Royale du Canada) with its head office in Montréal, Quebec.
  • The amalgamation is conditional on RBC completing a proposed acquisition of all shares of HSBC Bank Canada under a share purchase agreement dated November 29, 2022. If that acquisition does not complete, the amalgamation will not proceed.
  • The notice says publication is not proof that letters patent will be issued; the decision rests with the usual review and the Minister’s discretion.

Who's affected#

• For the Pacific Life Re notice:

  • Policyholders and creditors of Pacific Life Re Limited’s insurance business in Canada.
  • Others connected to those policies (agents, beneficiaries) may also want to pay attention.

• For the bank amalgamation notice:

  • Customers and account holders of HSBC Bank Canada and Royal Bank of Canada.
  • Shareholders of the firms involved.
  • Employees and branch operations of the entities named.
  • Regulators and anyone tracking large bank mergers in Canada.

Why it matters#

• The Pacific Life Re notice matters because an approval would let a foreign-based insurer change how it holds or releases assets in Canada. That can affect the financial backing for Canadian policies and creditors, and gives those parties a chance to object before the regulator decides.

• The bank amalgamation matters because, if the acquisition and approvals go through, two major banking groups would be combined under the Royal Bank of Canada name and with a Montréal head office. That could lead to changes in branding, services, branch networks, corporate structure, and who regulates which parts of the business. The plan is conditional and still needs multiple approvals.