I-11.8Insurance Companies ActSOR/92-31519925

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INSURANCE COMPANIES ACTSubsidiaries Holding Company Shares (Insurance Companies) RegulationsRegulations Permitting Companies to Permit their Subsidiaries to Hold Shares of the CompanyP.C.1992-1090 19925

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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 703(h) of the Insurance Companies Act*, is pleased hereby to make the annexed Regulations permitting companies to permit their subsidiaries to hold shares of the company, effective June 1, 1992.*S.C. 1991, c. 47SHORT TITLE

1.These Regulations may be cited as the Subsidiaries Holding Company Shares (Insurance Companies) Regulations.

INTERPRETATION

2.In these Regulations,Act means the Insurance Companies Act; (Loi)distribution means distribution as defined in section 296 of the Act; (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)

HOLDING OF COMPANY’S SHARES BY SUBSIDIARY

3.For the purposes of paragraph 74(c) of the Act, subject to section 4, a company may permit a subsidiary of the company that is a regulated securities entity to hold shares of the company if the aggregate value of shares of the company held by all such subsidiaries, other than shares referred to in section 76 of the Act, does not exceed one per cent of the regulatory capital of the company.

EXCEPTION FOR UNDERWRITER

4.Where a subsidiary of a company is a regulated securities entity and is acting as a securities underwriter in connection with a distribution of shares of the company, the company may permit the subsidiary to hold shares of the company in excess of the limit set out in section 3 until the distribution is ended.