Specialized Financing (Life Companies) Regulations
P.C. 2001-1800 2001-10-04
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 494Footnote a, 501Footnote a and 1021Footnote b of the Insurance Companies ActFootnote c, hereby makes the annexed Specialized Financing (Life Companies) Regulations.
1. (1) The following definitions apply in these Regulations.
« Loi »
“Act” means the Insurance Companies Act.
“balance sheet value”
« valeur au bilan »
“balance sheet value”, in respect of the shares and ownership interests held by an entity, means the value reported on its balance sheet on an unconsolidated basis.
- “book value”
“book value” [Repealed, SOR/2008-168, s. 15]
“specialized financing entity of the life company”
« entité de la société d’assurance-vie s’occupant de financement spécial »
“specialized financing entity of the life company” means a specialized financing entity that is controlled by the life company or in which the life company holds a substantial investment.
« filiale »
“subsidiary”, in respect of a life company, does not include a subsidiary that is a specialized financing entity of the life company.
Definition of “specialized financing entity”
(2) In these Regulations and for the purpose of the definition “specialized financing entity” in subsection 490(1) of the Act, “specialized financing entity” means an entity that acquires or holds shares of, or ownership interests in, entities that a life company may acquire control of, or hold, acquire or increase a substantial investment in, under subsection 493(4) of the Act.
- SOR/2008-168, s. 15.
2. These Regulations apply to specialized financing activities under subsection 493(4) of the Act and to the ownership by a life company of shares of, or ownership interests in, a specialized financing entity under paragraph 495(2)(b) of the Act.
Marginal note:Limits on investments
3. A life company shall not, by way of specialized financing activities, acquire control of, or hold, acquire or increase a substantial investment in,
(a) an entity referred to in any of paragraphs 495(1)(a) to (j) of the Act;
(b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
(c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property; or
(d) an entity that acts as an insurance broker or agent in Canada.
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