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Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 1021 of the Insurance Companies Act, hereby makes the annexed Regulatory Capital (Insurance Holding Companies) Regulations.notenote
Interpretation
1Definitions#
The following definitions apply in these Regulations.
Act means the Insurance Companies Act. (Loi)
minority interest means an equity interest, in an entity that is controlled by an insurance holding company, that is held by a person other than
(a)the insurance holding company; or
(b)an entity controlled by the insurance holding company. (participation minoritaire)
Regulatory Capital
2Definition of regulatory capital#
(1)Subject to subsection (2), the regulatory capital of an insurance holding 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 all 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.
Coming into Force
*3Coming into force#
These Regulations come into force on the day on which sections 970 and 984 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, come into force.
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.