Subsidiaries that Hold Bank Holding Company Shares Regulations (SOR/2001-433)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Bank Act. (Loi )

distribution

distribution means

• (a) a trade by or on behalf of a bank holding company in securities of the bank holding company that have not previously been issued; or

• (b) a trade in previously issued securities of a bank holding company from the holdings of any person or group of persons who act in concert and who hold in excess of 10% of the shares of any class of voting shares of the bank holding company. (mise en circulation)

regulated securities entity

regulated securities entity means a financial institution whose primary business is dealing in securities and that is regulated in its securities dealings by an Act of Parliament or of the legislature of a province or by the laws of a foreign country. (entité de valeurs mobilières réglementée)

Holding of Bank Holding Company’s Shares by Subsidiary

Marginal note:Where subsidiary may hold shares

2 For the purpose of paragraph 714(c) of the Act, a bank holding company may, subject to section 3, permit a subsidiary of the bank holding company that is a regulated securities entity to hold shares of the bank holding company if the aggregate value of shares of the bank holding company held by all subsidiaries of the bank holding company that are regulated securities entities, other than shares referred to in section 716 of the Act, does not exceed 1% of the regulatory capital of the bank holding company.

Marginal note:Exception for securities underwriter

3 If a subsidiary of a bank holding company is a regulated securities entity and is acting as a securities underwriter in connection with a distribution of shares of the bank holding company, the bank holding company may permit the subsidiary to hold shares of the bank holding company in excess of the limit set out in section 2 until the distribution is ended.

Coming into Force

Marginal note:Coming into force

Footnote ^*4 These Regulations come into force on the day on which section 714 of the Bank Act, as enacted by section 183 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.

• Return to footnote ^*[Note: Regulations in force October 24, 2001, see SI/2001-102.]