Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

328 Subsection 976.1(1) of the Act is replaced by the following:

1991, c. 47Insurance Companies Act

• 329 (1) Paragraphs 441(1)(d) and (d.1) of the Insurance Companies Act are replaced by the following:

  • (c.1) subject to sections 475 and 478 and the regulations, engage in any activity that relates to the provision of financial services by the company or any of its affiliates;

  • (d) subject to the regulations, engage in any of the following activities:

    • (i) collecting, manipulating and transmitting information, and

    • (ii) designing, developing, manufacturing, selling and otherwise dealing with technology, if those activities relate to

      • (A) an activity referred to in this subsection or subsection (1.1) that is engaged in by the company or any of its affiliates, or

      • (B) the provision of financial services by any other entity,

• (2) Subsection 441(1) of the Act is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (h) and by adding the following after paragraph (h):

  • (i) provide identification, authentication or verification services.

• (3) Paragraph 441(4)(a) of the Act is replaced by the following:

  • (a) respecting what a company may or may not do with respect to the carrying on of the activities referred to in any of paragraphs (1)(c.1) and (d) and subsection (1.1);

• (4) Subparagraph 441(4)(b)(ii) of the English version of the Act is replaced by the following:

  • (ii) the carrying on of the activities referred to in any of paragraphs (1)(c.1) and (d) and subsection (1.1); and

• (5) Paragraph 441(4)(c) of the Act is replaced by the following:

  • (c) respecting the circumstances in which a company may engage in the activities referred to in paragraphs (1)(c.1) and (d), including the circumstances in which a company may collect, manipulate and transmit information under subparagraph (1)(d)(i).

330 Section 442 of the Act is replaced by the following:

• 331 (1) Section 495 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) and (6) to (8), Part XI and the regulations made under paragraphs (2.2)(b) and (c), a life company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a life company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of this section, the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a life company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a life company may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 495(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 493(2), paragraph 493(3)(b) or (c) or subsection 493(4); or

• (3) Section 495 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Permitted investments

    (4.1) Subject to subsections (5) to (8), Part XI and the regulations made under paragraphs (4.2)(a) and (b), a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a property and casualty company, or a marine company, is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (4.2) The Governor in Council may make regulations

    • (a) imposing, for the purposes of subsection (4.1), terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (b) respecting, for the purposes of subsection (4.1), the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (4) Subparagraph 495(5)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (4) or (4.1) or 493(2) or paragraph 493(3)(b) or (c); or

• (5) Subsection 495(7) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (d) and (d.1).

• (6) Paragraph 495(9)(a) of the Act is replaced by the following:

  • (a) the company is acquiring control of an entity, other than a specialized financing entity, under subsection (2), (2.1), (4) or (4.1) and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b) or (4)(b);