Subsidiaries that Hold Insurance Holding Company Shares Regulations
AI-assisted research summary: These Regulations let an insurance holding company allow a regulated-securities subsidiary to hold its shares, subject to a 1% regulatory-capital limit and a specific underwriting exception.
Subsidiaries that Hold Insurance Holding Company Shares Regulations His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 1021a of the Insurance Companies Actb, hereby makes the annexed Subsidiaries that Hold Insurance Holding Company Shares Regulations. S.C. 2001, c. 9, s. 465 S.C. 1991, c. 47 Definitions The following definitions apply in these Regulations. Act means the Insurance Companies Act. ( Loi) distribution means a trade by or on behalf of an insurance holding company in securities of the insurance holding company that have not previously been issued; or a trade in previously issued securities of an insurance 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 insurance holding company. (mise en circulation) 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) Where subsidiary may hold shares For the purpose of paragraph 753(c) of the Act, an insurance holding company may, subject to section 3, permit a subsidiary of the insurance holding company that is a regulated securities entity to hold shares of the insurance holding company if the aggregate value of shares of the insurance holding company held by all subsidiaries of the insurance holding company that are regulated securities entities, other than shares referred to in section 755 of the Act, does not exceed 1% of the regulatory capital of the insurance holding company. Exception for securities underwriter If a subsidiary of an insurance holding company is a regulated securities entity and is acting as a securities underwriter in connection with a distribution of shares of the insurance holding company, the insurance holding company may permit the subsidiary to hold shares of the insurance holding company in excess of the limit set out in section 2 until the distribution is ended. Coming into force These Regulations come into force on the day on which section 753 of the Insurance Companies Act, as enacted by section 465 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force. [Note: Regulations in force October 24, 2001, see SI/2001-102.]