Banking Circle Seeks Toronto Branch; RSA Reinsurance

Summary#

This notice in the Canada Gazette contains two separate items. One says Banking Circle S.A. (a bank based in Luxembourg) intends to apply under the Bank Act (Canada) to open a full-service branch in Toronto. The other says Royal & Sun Alliance Insurance Company of Canada plans to ask the Minister of Finance (Canada) to approve a transfer of its travel-insurance liabilities to Belair Insurance Company Inc. under the Insurance Companies Act (Canada).

What it does#

• Banking Circle S.A. plans to apply for an order to establish a full-service Canadian branch called Banking Circle S.A. - Canada Branch with its principal office in Toronto, Ontario. The bank’s ultimate controlling shareholder is EQT Fund Management S.à r.l., acting as manager of EQT VIII. Objections can be sent to the Office of the Superintendent of Financial Institutions (Canada) by September 9, 2024. The notice makes clear that publication is not approval; the Minister must still decide under the Bank Act (Canada).

• Royal & Sun Alliance Insurance Company of Canada proposes to apply on or after September 10, 2024 for the Minister’s approval to have Belair Insurance Company Inc. assume, on an assumption basis, substantially all of RSA Canada’s travel-insurance policy liabilities. A copy of the proposed assumption agreement is available for inspection at RSA Canada’s head office in Toronto for 30 days following publication (publication date August 10, 2024).

Who's affected#

• Potential customers or businesses in Canada who might use services from Banking Circle S.A. if the branch is approved.
• The federal financial regulator, Office of the Superintendent of Financial Institutions (Canada), and the Minister of Finance (Canada), who will review and decide on the applications.
• Policyholders of Royal & Sun Alliance Insurance Company of Canada who hold travel insurance. They can inspect the proposed agreement or request a copy from RSA Canada.
• Belair Insurance Company Inc., which would take on RSA Canada’s travel-insurance liabilities if approved.

If it is unclear who else may be affected, that is because the notices describe intentions and proposed applications, not final decisions.

Why it matters#

• A new foreign bank branch in Toronto could mean new banking services or competition for some Canadian businesses and customers — but only if the Minister approves the application.
• Moving travel-insurance liabilities from one company to another can affect where policyholders send claims and who handles their coverage. Policyholders should review the proposed agreement (available for 30 days after August 10, 2024) and note the application timeline and approval process.