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BANK ACTSubsidiaries Holding Bank Shares (Banks) RegulationsRegulations Permitting Banks to Permit their Subsidiaries to Hold Shares of the BankP.C.1992-108819925

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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 559(h) of the Bank Act*, is pleased hereby to make the annexed Regulations permitting banks to permit their subsidiaries to hold shares of the bank, effective June 1, 1992.*S.C. 1991, c. 46Short Title

1These Regulations may be cited as the Subsidiaries Holding Bank Shares (Banks) Regulations.

Interpretation

2In these Regulations,Act means the Bank Act; (Loi)distribution means distribution as defined in subsection 273(3) 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 Bank’s Shares by Subsidiary

3For the purposes of paragraph 70(c) of the Act, subject to section 4, a bank may permit a subsidiary of the bank that is a regulated securities entity to hold shares of the bank if the aggregate value of shares of the bank held by all such subsidiaries, other than shares referred to in section 72 of the Act, does not exceed one per cent of the regulatory capital of the bank.

Exception for Underwriter

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