Information Technology Activities (Insurance Holding Companies) Regulations

Information Technology Activities (Insurance Holding Companies) Regulations Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 977a and 1021a of the Insurance Companies Actb, hereby makes the annexed Information Technology Activities (Insurance Holding Companies) 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) 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. (valeur au bilan) book value[Repealed, SOR/2008-168, s. 21] Prescribed activity For the purposes of paragraph 971(2)(f) of the Act and subject to subsections (2) and (3), a prescribed activity in relation to an entity is developing, designing, holding, managing, manufacturing, selling or otherwise dealing with any data transmission system, information site, communication device or information platform or portal that is used to provide information services. Limit on size of investment An insurance holding company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the sum of the following exceeds 5% of the insurance holding company’s regulatory capital: the aggregate balance sheet value of the shares and ownership interests that the insurance holding company and its subsidiaries, whether individually or jointly, would acquire in the entity under paragraph 971(2)(f) of the Act, the aggregate balance sheet value of the shares and ownership interests held by the insurance holding company and its subsidiaries, whether individually or jointly, in entities engaging in an activity described in subsection (1) that the insurance holding company holds control of, or a substantial investment in, under paragraph 971(2)(f) of the Act, and the aggregate value of outstanding loans made by the insurance holding company and its subsidiaries, whether individually or jointly, to entities engaging in an activity described in subsection (1) that the insurance holding company holds control of, or a substantial investment in, under paragraph 971(2)(f) of the Act. Restricted activities An insurance holding company may not acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include activities that a company is not permitted to engage in under any of sections 466, 469 and 475 of the Act; dealing in securities, except as may be permitted under paragraph 971(2)(e) of the Act or as may be permitted to a company under paragraph 440(2)(b) of the Act; dealing in goods, wares or merchandise that a company is not permitted to deal in under subsection 441(3) of the Act, other than as permitted under subsection (1); activities that a company is not permitted to engage in under any regulation made under section 489 of the Act if the entity engages in the activities of a finance entity or of any other entity prescribed under paragraph 971(3)(c) of the Act; acquiring control of or acquiring or holding a substantial investment in another entity unless in the case of an entity that is controlled by the insurance holding company, a company would be permitted under Part IX of the Act to acquire a substantial investment in the other entity, or in the case of an entity that is not controlled by the insurance holding company, a company would be permitted to acquire a substantial investment in the other entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 493(4) or 495(1) or (2) of the Act; or any activity prescribed under paragraph 971(3)(e) of the Act. Exemption from restrictions For the purposes of subparagraph 2(3)(e)(ii), subsections 495(6) to (8) of the Act do not apply in determining whether a company would be permitted to acquire a substantial investment in an entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 493(4) or 495(1) or (2) of the Act. Non-application Subsection 971(5) of the Act does not apply where, under paragraph 971(2)(f) of the Act, an insurance holding company acquires control of, or acquires or increases a substantial investment in, an entity whose business is limited to activities described in subsection 2(1). Nothing in this section limits the operation of subsections 2(2) and (3). Coming into force These Regulations come into force on the day on which they are registered.