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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition regulatory capital in subsection 2(1) and section 703 of the Insurance Companies Act, is pleased hereby to make the annexed Regulations defining the regulatory capital of a company.note
Short Title
1#
These Regulations may be cited as the Regulatory Capital (Insurance Companies) Regulations.
Interpretation
2#
In these Regulations,
Act means the Insurance Companies Act; (Loi)
designated entity [Repealed, SOR/2001-423, s. 1]
liabilities includes deferred taxes and subordinated indebtedness; (passif)
minority interest means an equity interest, in an entity that is controlled by a company, that is held by a person other than
(a)the company, or
(b)an entity controlled by the company. (participation minoritaire)
note
Regulatory Capital
3#
(1)Subject to subsection (2), the regulatory capital of a company, at any time, is the amount determined by the formula
(2)In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if
(a)the security is, by its terms, subordinate in right of payment to the policy liabilities and the other liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;
(b)the security is issued and fully paid up; and
(c)in respect of subordinated indebtedness or a preferred share, the security
(i)has an initial minimum term of five years or more or has no term, and
(ii)cannot be redeemed or purchased for cancellation in the first five years after it is issued.
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.