Banking Circle branch and RSA reinsurance

Summary#

Two miscellaneous notices appeared in the Canada Gazette on August 10, 2024. One says Banking Circle S.A. plans to apply to open a full-service bank branch in Toronto under the Bank Act. The other says Royal & Sun Alliance Insurance Company of Canada wants to have its travel-insurance liabilities assumed by Belair Insurance Company Inc. and that policyholders can inspect the proposed agreement for 30 days.

What it does#

• Banking Circle S.A. (a bank based in Luxembourg) intends to apply to the Minister of Finance (Canada) for permission to establish a full-service branch in Canada. The branch would operate as Banking Circle S.A. - Canada Branch with its main office in Toronto. The notice says objections can be sent to the Office of the Superintendent of Financial Institutions (Canada) by September 9, 2024. The move requires ministerial approval and other regulator permissions under the Bank Act.
• Royal & Sun Alliance Insurance Company of Canada (“RSA Canada”) intends to apply to the Minister of Finance (Canada) on or after September 10, 2024 for approval to transfer, on an assumption basis, substantially all of its travel-insurance policy liabilities to Belair Insurance Company Inc. A copy of the proposed assumption reinsurance agreement is available for inspection at RSA Canada’s head office for 30 days after the notice appeared in the Gazette.

Who's affected#

• People and businesses in Canada who might choose to bank with Banking Circle S.A. once a Toronto branch opens.
• Policyholders of Royal & Sun Alliance Insurance Company of Canada who hold travel insurance policies. They can inspect the proposed agreement and request a copy from RSA Canada.
• The Minister of Finance (Canada) and the Office of the Superintendent of Financial Institutions (Canada), who handle approvals and any objections.
• It is unclear whether other groups (for example, business partners or third‑party claims handlers) will be affected; details depend on the final approval and the exact terms of the agreements.

Why it matters#

• A new foreign bank branch in Toronto could offer new banking services or competition if approved. That may matter to businesses and individuals looking for banking options, especially for cross-border or fintech-style services.
• If RSA Canada’s travel-insurance liabilities are assumed by Belair Insurance Company Inc., the company responsible for paying claims and managing those policies would change. Policyholders should review the proposed agreement (available at RSA Canada’s head office) and may want to note how claims would be handled under the new arrangement.
• Both items are proposals or applications, not final decisions. The public has a short window to object or review documents: objections to the bank branch application are due by September 9, 2024, and the RSA inspection period runs for 30 days after the Gazette publication.