Regulatory Capital (Trust and Loan Companies) Regulations
Regulations Defining the Regulatory Capital of a Company
P.C. 1992-1849 1992-08-27
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition “regulatory capital” in section 2 and section 531 of the Trust and Loan Companies ActFootnote *, is pleased hereby to make the annexed Regulations defining the regulatory capital of a company.
Return to footnote *S.C. 1991, c. 45
1. These Regulations may be cited as the Regulatory Capital (Trust and Loan Companies) Regulations.
2. In these Regulations,
“Act” means the Trust and Loan Companies Act; (Loi)
- “designated entity”
“designated entity” means an entity other than
(a) an insurance company,
(b) a securities dealer, or
(c) an entity controlled by an insurance company or a securities dealer; (entité désignée)
- “insurance company”
“insurance company” means an insurance company that is incorporated by or under the laws of Canada or of a province; (société d’assurances)
- “minority interest”
“minority interest” means an equity interest, in an entity that is controlled by a company, that is held by a person other than
(a) the company, or
(b) an entity controlled by the company; (participation minoritaire)
- “securities dealer”
“securities dealer” means an entity described in paragraph (g) of the definition “financial institution” in section 2 of the Act. (négociant en valeurs mobilières)
3. (1) Subject to subsection (2) and section 4, the regulatory capital of a company, at a particular time, is the aggregate of the amounts of
(a) shareholders equity,
(b) minority interests, and
(c) subordinated indebtedness
that would be reported in the financial statements of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 313(4) of the Act, less the amount of goodwill that would be included in those financial statements.
(2) In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if
(a) the security is, by its terms, subordinate in right of payment to all deposit liabilities and all other liabilities of the entity that issued the security, other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;
(b) the security is issued and fully paid-up; and
(c) in respect of subordinated indebtedness or a preferred share, the security
(i) has an initial minimum term of five years or more or has no term, and
(ii) cannot be redeemed or purchased for cancellation in the first five years after it is issued.
- SOR/94-64, s. 2.
- Date modified: