Marginal note:Restriction on control and substantial investments
969 (1) Subject to subsections (2) and (3), no insurance holding company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
Marginal note:Exception: indirect investments
(2) An insurance holding company may acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of
(a) an acquisition of control of an entity referred to in any of paragraphs 971(1)(a) to (j), a specialized financing entity or a prescribed entity that controls or has a substantial investment in the entity; or
(b) an acquisition of shares or ownership interests in the entity by
(i) an entity referred to in any of paragraphs 971(1)(a) to (j), a specialized financing entity or a prescribed entity that is controlled by the insurance holding company, or
(ii) an entity controlled by an entity referred to in any of paragraphs 971(1)(a) to (j), a specialized financing entity or a prescribed entity that is controlled by the insurance holding company.
Marginal note:Exception: temporary investments, realizations and loan workouts
(3) An insurance holding company may acquire control of, or acquire or increase a substantial investment in, an entity by way of
(a) a temporary investment permitted by section 974;
(b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 975; or
(c) a realization of security permitted by section 976.
Marginal note:Exception: uncontrolled event
(4) An insurance holding company is deemed not to contravene subsection (1) if the insurance holding company acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the insurance holding company.
- 2001, c. 9, s. 465
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