Minority Investment (Insurance Holding Companies) Regulations

Marginal note:Restriction concerning investments

3 Subject to sections 5 or 6, an insurance holding company must not acquire or increase a substantial investment in a designated entity under paragraph 2(a) or give up control of the designated entity while keeping a substantial investment in it under paragraph 2(b) if, after the acquisition, increase or giving up of control, the total value of the following would exceed 50% of the insurance holding company’s regulatory capital:

• (a) all shares and ownership interests beneficially owned by the insurance holding company, and all shares and ownership interests beneficially owned by entities controlled by the insurance holding company, in designated entities in which the insurance holding company has a substantial investment but over which it does not exercise control,

• (b) all loans held by the insurance holding company, and all loans held by entities controlled by the insurance holding company, that were made to designated entities in which the insurance holding company has a substantial investment but over which it does not exercise control, and

• (c) all outstanding guarantees given by the insurance holding company, and all outstanding guarantees given by entities controlled by the insurance holding company, on behalf of designated entities in which the insurance holding company has a substantial investment but over which it does not exercise control.