Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

332 The Act is amended by adding the following after section 495:

333 Paragraph 528(1)(c) of the Act is replaced by the following:

• 334 (1) Paragraphs 542(2)(d) and (e) of the Act are replaced by the following:

  • (d) subject to the regulations, act as an agent for a person, or enter into any other arrangement with a person, in respect of the provision of a service by

    • (i) a financial institution that is primarily engaged in an insurance business, or

    • (ii) an entity in which a society is permitted to acquire a substantial investment under section 554, if that section were read without reference to the requirements of subsections 554(4) and (5); and

  • (e) refer any person to another person.

• (2) Section 542 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Regulations

    (6) The Governor in Council may, for the purposes of paragraphs (2)(d) and (e), make regulations

    • (a) respecting the circumstances in which a society may act;

    • (b) imposing terms and conditions in respect of what a society may do; and

    • (c) respecting what a society is prohibited from doing when acting as an agent or when making referrals.

• 335 (1) Section 554 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) and (4) and the regulations made under paragraphs (2.2)(b) and (c), a society may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (c), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a property and casualty company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a society may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a society may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 554(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the society, the society itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 552(2) or paragraph 552(3)(b) or (c); or

• (3) Subsection 554(5) of the Act is replaced by the following:

  • Marginal note:Minister’s approval

    (5) Subject to the regulations, a society may not, without the prior written approval of the Minister, acquire control of, or acquire or increase a substantial investment in, a permitted entity other than an entity that a society may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1) or an entity whose activities are limited to activities that a property and casualty company is permitted to engage in under paragraph 441(1)(c.1) or (d).

336 The Act is amended by adding the following after section 554:

• 337 (1) Section 971 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) to (6) and the regulations made under paragraphs (2.2)(b) and (c), an insurance holding company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs 495(1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that an insurance holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which an insurance holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1).

• (2) Subparagraph 971(3)(d)(ii) of the Act is replaced by the following:

  • (ii) 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), (2) or (2.1); or

• (3) Subsection 971(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (5)(d) and (d.1).

• (4) Paragraph 971(7)(a) of the Act is replaced by the following:

  • (a) the insurance holding company is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the insurance holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);

338 The Act is amended by adding the following after section 971:

• 339 (1) Paragraphs 1019.1(1)(a) and (b) of the Act are replaced by the following:

  • (a) paragraph 441(1)(h);

  • (b) paragraphs 495(7)(b.1) and (c);

• (2) Paragraph 1019.1(1)(e) of the Act is replaced by the following:

  • (e) paragraphs 971(5)(b.1) and (c).