Investments in Permitted Infrastructure Entities Regulations (SOR/2023-197)

Marginal note:Regulatory capital of insurance holding company

• 9 (1) An insurance holding company must not acquire control of, or acquire or increase a substantial investment in, a permitted infrastructure entity if the sum of the following values is greater than 20% of the insurance holding company’s regulatory capital:

  • (a) the value of all shares and other ownership interests held by the insurance holding company or any of its subsidiaries, whether individually or jointly, in all the permitted infrastructure entities that the insurance holding company, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act;

  • (b) the value of the outstanding principal of all loans held by the insurance holding company or any of its subsidiaries, whether individually or jointly, and made to permitted infrastructure entities that the insurance holding company, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act; and

  • (c) the value of the outstanding guarantees given by the insurance holding company or any of its subsidiaries, whether individually or jointly, on behalf of all permitted infrastructure entities that the insurance holding company, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act.

• Marginal note:Prohibition

  (2) If the sum of the values set out in paragraphs (1)(a) to (c) exceeds 20% of an insurance holding company’s regulatory capital, the insurance holding company must not and must not permit its subsidiaries to

  • (a) acquire additional shares of or other ownership interests in, or acquire loans made to, a permitted infrastructure entity that the insurance holding company, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act;

  • (b) make new loans or guarantees or increase the value of the loans or guarantees referred to in paragraphs (1)(b) and (c); or

  • (c) acquire control of, or amalgamate or merge with, an entity that holds

    • (i) shares of or other ownership interests in a permitted infrastructure entity that the insurance holding company, or any of its life company subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act, or

    • (ii) loans to or guarantees on behalf of a permitted infrastructure entity that the insurance holding company, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 971(2.1) of the Act.

Amendments to These Regulations

Coming into Force

Marginal note:S.C. 2018, c. 12

• 15 Footnote ^*(1) Subject to subsection (2), these Regulations come into force on the day on which section 343 of the Budget Implementation Act, 2018, No. 1 comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

  • Return to footnote ^*[Note: Sections 1 to 9 in force September 26, 2023.]

• Marginal note:S.C. 2018, c. 12

  Footnote ^*(2) Sections 10 to 14 come into force on the first day on which both subsections 331(1) and 344(1) of the Budget Implementation Act, 2018, No. 1 are in force.

  • Return to footnote ^*[Note: Sections 10 to 14 not in force.]