Interim preservation of property
389(1)On the application of the Financial and Consumer Services Commission, the Tribunal may make one or more of the following orders if the Tribunal considers it expedient for the administration of this Act or the regulations or to assist in the administration of similar legislation of another jurisdiction:
(a)
an order directing a person having on deposit or under control or for safekeeping any funds, securities or property to retain the funds, securities or property and to hold them;
(b)
an order directing a person to refrain from withdrawing the person’s funds, securities or property from any other person having any of them on deposit or under control or for safekeeping; or
(c)
an order directing a person to hold all funds, securities or property of clients or others in the person’s possession or control in trust for any interim receiver, custodian, trustee, receiver, receiver and manager or liquidator appointed under the
Business Corporations Act, the
Companies Act, the
Judicature Act, this Act, the
Bankruptcy and Insolvency Act (Canada), the
Winding-up and Restructuring Act (Canada) or any other Act of the Legislature or of Canada.
389(2)An order under subsection (1) that names a financial institution shall apply only to the branches of the financial institution identified in the order.
389(3)An order under subsection (1) is effective for seven days after its making, but the Financial and Consumer Services Commission may apply to the court to continue the order or for any other order that the court considers appropriate.
389(4)An order under subsection (1) may be made
ex parte but, in that event, copies of the order shall be sent without delay by any means that the Tribunal determines to all persons named in the order.
389(5)A person in receipt of an order under subsection (1) who is in doubt as to the application of the order to any funds, securities or property or as to a claim being made to that person by any person not named in the order may apply to the Tribunal for direction or clarification.
389(6)The Tribunal, on the application of the Financial and Consumer Services Commission or of a person directly affected by the order, may revoke an order under subsection (1) or permit the release of any funds, securities or property in respect of which the order was made.
389(7)A notice of an order under subsection (1) may be registered or recorded against the lands or claims identified in the order by submitting the notice to the appropriate registry office established under the
Registry Act or to the appropriate land titles office established under the
Land Titles Act.
389(8)The Tribunal may order a notice submitted under subsection (7) to be revoked or modified and, if an order is made, the Financial and Consumer Services Commission shall submit a copy of the revocation or modification to the appropriate registry office or land titles office.
389(9)On submission of a notice under subsection (7) or a copy of a written revocation or modification under subsection (8), the notice or the copy of the revocation or modification shall be registered or recorded in the registry office or land titles office, as the case may be, by the registrar and has the same effect as the registration or recording of a certificate of pending litigation.
2016, c.36, s.7; 2023, c.2, s.186