CPTPP and U.K. added to Bank Act Schedule

Summary#

This order, SOR/2021-146, adds the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP) and the Canada–United Kingdom Trade Continuity Agreement (CUKTCA) to Schedule IV of the Bank Act. Practically, it extends an existing trade-based exemption that lets certain foreign‑controlled financial firms store their records outside Canada while keeping regulator access; the change took effect when related CUSMA implementation rules came into force on June 30, 2021.

What it does#

• Adds the CPTPP and the CUKTCA to Schedule IV of the Bank Act.
• Extends to firms controlled by entities in the U.K. and CPTPP countries the same data‑storage treatment Canada already gives under the Canada–United States–Mexico Agreement (CUSMA).
• Lets eligible foreign‑owned banks, insurers and similar federally regulated financial institutions keep certain records only outside Canada instead of also keeping copies in Canada.
• Keeps the requirement that Canadian regulators have immediate, direct and complete access to the information they need.
• Allows regulators to revoke the exemption and require copies be kept in Canada if they judge that access is not being met.

Who's affected#

• Federally regulated, foreign‑controlled financial institutions that meet the eligibility rules (those controlled by parties to the CUKTCA or CPTPP).
• The federal supervisors who enforce the rules: the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Deposit Insurance Corporation (CDIC).
• Customers of those institutions may be affected in practice because some financial records about Canadians could be kept abroad, though Canadian privacy laws still apply.
• It is not clear from the order which specific firms will use the exemption; only those that qualify under the implementation rules are eligible.

Why it matters#

• It implements Canada’s trade commitments so some foreign‑controlled banks and insurers operating in Canada can simplify IT setups and avoid keeping duplicate servers in Canada.
• It may change where Canadians’ financial information is stored, which matters for privacy and for people who care about cross‑border data flows.
• Regulators still maintain oversight and can require on‑shore copies if they can’t get the access they need, so the change balances trade obligations with supervisory needs.
• The government says the order creates no extra costs for businesses or small‑business impacts and is a response to existing international obligations rather than a new policy.