Raymond James and Solus trust amalgamation; Santander plan

Summary#

• On April 25, 2024, Raymond James Trust (Québec) Ltd. asked the federal banking regulator to be continued as a federal trust company under the Trust and Loan Companies Act and to merge with its parent, Solus Trust Company.
• Separately, Santander Consumer Bank, Santander Consumer Finance Inc., and Santander Consumer Inc. say they will apply on or after July 22, 2024 to merge and continue as a bank under the Bank Act (to be named Santander Consumer Bank), if the regulator gives the required start-up permission.

What it does#

• For Raymond James Trust (Québec) Ltd. and Solus Trust Company:

  • Seeks letters patent to continue Raymond James Trust (Québec) Ltd. as a federally incorporated, non-deposit taking trust company under the Trust and Loan Companies Act.
  • Seeks letters patent to amalgamate Raymond James Trust (Québec) Ltd. with Solus Trust Company so the combined company will be named Solus Trust Company (head office remaining in Toronto).
  • The company says it will finalize the federal application after getting Quebec’s approval under the provincial Trust Companies and Savings Companies Act (Québec).
  • The public can send objections in writing to OSFI by August 20, 2024.

• For the Santander group:

  • The three companies intend to jointly apply for letters patent of amalgamation to continue as a bank under the Bank Act named Santander Consumer Bank (French name: Banque Santander Consumer).
  • The amalgamation is conditional on the Superintendent of Financial Institutions issuing an Order to Commence and Carry On Business (OCCB). If the OCCB is not issued, they will not amalgamate.

Who's affected#

• Clients of the trust companies who use estate and trust services across Canada could see the company move from provincial to federal regulation.
• Employees and local offices of Raymond James Trust (Québec) Ltd. and Solus Trust Company, especially in Montréal and Toronto, may be affected by corporate and regulatory changes.
• Customers, dealers, employees and service providers of the Santander companies in Canada could be affected if the bank amalgamation and federal continuation go ahead.
• The general public can object to the Raymond James continuance/amalgamation; it is unclear from the notice whether other formal public comment routes exist for the Santander proposal.

Why it matters#

• Moving a trust company from provincial to federal status changes which federal regulator oversees it and which federal rules apply. That can affect consumer protections, reporting rules, and where complaints are handled.
• A bank amalgamation can change the legal status and oversight of the business that serves customers. For the Santander plan, the change only happens if the regulator gives the required start-up permission (the OCCB).
• These notices are applications, not approvals. Publication does not mean the mergers or continuances will be allowed. The public has a formal chance to object to the Raymond James application by August 20, 2024.