Information Technology Activities (Property and Casualty Companies and Marine Companies) Regulations (SOR/2003-68)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Insurance Companies Act. (Loi)

balance sheet value

balance sheet value, in respect of the shares and ownership interests held by an entity, means the value reported on its balance sheet on an unconsolidated basis. (valeur au bilan)

book value

book value[Repealed, SOR/2008-168, s. 25]

member of a company’s group

member of a company’s group has the same meaning as in subsection 490(2) of the Act. (membre du groupe d’une société)

member of a property and casualty company’s group

member of a property and casualty company’s group[Repealed, SOR/2009-296, s. 37]

Prescribed Purpose or Circumstance

Marginal note:Prescribed purpose or circumstance

2 For the purposes of subparagraph 441(1)(d.1)(iii) of the Act, the prescribed purpose or the prescribed circumstance, in the case of a property and casualty company or a marine company, is a purpose or circumstance that is materially related to the provision of financial products or services by the company or a member of the company’s group.

Investments

Marginal note:Prescribed activity

• 3 (1) For the purposes of paragraph 495(4)(f) of the Act and subject to subsections (2) and (3), a prescribed activity in relation to an entity is designing, developing, holding, managing, manufacturing, selling or otherwise dealing with any data transmission system, information site, communication device or information platform or portal that is used to provide information services.

• Marginal note:Limit on size of investment

  (2) Neither a property and casualty company nor a marine company may acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the sum of the following exceeds 5% of the company’s regulatory capital:

  • (a) the aggregate balance sheet value of the shares and ownership interests that the company and its subsidiaries, whether individually or jointly, would acquire in the entity under paragraph 495(4)(f) of the Act,

  • (b) the aggregate balance sheet value of the shares and ownership interests held by the company and its subsidiaries, whether individually or jointly, in entities engaging in an activity described in subsection (1) that the company holds control of, or a substantial investment in, under paragraph 495(4)(f) of the Act, and

  • (c) the aggregate value of outstanding loans made by the company and its subsidiaries, whether individually or jointly, to entities engaging in an activity described in subsection (1) that the company holds control of, or a substantial investment in, under paragraph 495(4)(f) of the Act.

• Marginal note:Restricted activities

  (3) Neither a property and casualty company nor a marine company may acquire control of, or hold, acquire or increase a substantial investment in, an entity engaging in an activity described in subsection (1) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include

  • (a) activities that a company is not permitted to engage in under section 466 or 469 of the Act or that a property and casualty company or a marine company is not permitted to engage in under section 478 of the Act;

  • (b) any financial intermediary activity that exposes the entity to material market or credit risk, including the activities of a finance entity, a factoring entity and a financial leasing entity;

  • (c) the activities of a specialized financing entity;

  • (d) dealing in securities, except as may be permitted under paragraph 495(4)(e) of the Act or as may be permitted to a company under paragraph 440(2)(b) of the Act;

  • (e) dealing in goods, wares or merchandise that a company is not permitted to deal in under subsection 441(3) of the Act, other than as permitted under subsection (1);

  • (f) acquiring control of or acquiring or holding a substantial investment in another entity unless

    • (i) in the case of an entity that is controlled by the property and casualty company or the marine company, the company itself would be permitted under Part IX of the Act to acquire a substantial investment in the other entity, or

    • (ii) in the case of an entity that is not controlled by the property and casualty company or the marine company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 495(1) or (4) of the Act; or

  • (g) any activity prescribed under paragraph 495(5)(e) of the Act.

Exemption from Restrictions on Investments

Marginal note:Exemption from restrictions

4 For the purposes of subparagraph 3(3)(f)(ii), subsections 495(6) to (8) of the Act do not apply in determining whether a property and casualty company or a marine company would be permitted to acquire a substantial investment in an entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 495(1) or (4) of the Act.

Non-application of Subsection 495(7) of the Act

Marginal note:Non-application

5 Subsection 495(7) of the Act does not apply if, under paragraph 495(4)(f) of the Act, a property and casualty company or a marine company acquires control of, or acquires or increases a substantial investment in, an entity whose business is limited to activities described in subsection 3(1). Nothing in this section limits the operation of subsections 3(2) and (3).

Coming into Force

Marginal note:Coming into force

6 These Regulations come into force on the day on which they are registered.