Specialized Financing (Life Companies) Regulations

Marginal note:Limit of 10% of regulatory capital

6 A life company shall not, by way of specialized financing activities, acquire control of, or hold, acquire or increase a substantial investment in, an entity if the sum of the following exceeds 10% of the life company’s regulatory capital:

• (a) the aggregate book value of the shares and ownership interests that the life company and its subsidiaries, whether individually or jointly, would acquire in the entity,

• (b) the aggregate value of outstanding loans made by the life company and its subsidiaries, whether individually or jointly, to the specialized financing entities of the life company, and

• (c) the aggregate book value of the shares and ownership interests held by the life company and its subsidiaries, whether individually or jointly, in the specialized financing entities of the life company, in the entities controlled by the life company by way of specialized financing activities, and in the entities in which the life company holds a substantial investment by way of specialized financing activities.