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Subsidiaries Holding Company Shares (Insurance Companies) Regulations (SOR/92-315)

Regulations are current to 2024-02-06

Subsidiaries Holding Company Shares (Insurance Companies) Regulations

SOR/92-315

INSURANCE COMPANIES ACT

Registration 1992-05-21

Regulations Permitting Companies to Permit their Subsidiaries to Hold Shares of the Company

P.C. 1992-1090  1992-05-21

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 703(h) of the Insurance Companies ActFootnote *, is pleased hereby to make the annexed Regulations permitting companies to permit their subsidiaries to hold shares of the company, effective June 1, 1992.

Short Title

 These Regulations may be cited as the Subsidiaries Holding Company Shares (Insurance Companies) Regulations.

Interpretation

 In these Regulations,

Act

Act means the Insurance Companies Act; (Loi)

distribution

distribution means distribution as defined in section 296 of the Act; (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 Company’s Shares by Subsidiary

 For the purposes of paragraph 74(c) of the Act, subject to section 4, a company may permit a subsidiary of the company that is a regulated securities entity to hold shares of the company if the aggregate value of shares of the company held by all such subsidiaries, other than shares referred to in section 76 of the Act, does not exceed one per cent of the regulatory capital of the company.

Exception for Underwriter

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


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