Subsidiaries Holding Association Shares (Cooperative Credit Associations) Regulations (SOR/92-314)

Short Title

1 These Regulations may be cited as the Subsidiaries Holding Association Shares (Cooperative Credit Associations) Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Cooperative Credit Associations Act; (Loi)

distribution

distribution means distribution as defined in subsection 268(3) of the Act; (mise en circulation)

regulated securities entity

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 Association’s Shares by Subsidiary

3 For the purposes of paragraph 78(b) of the Act, subject to section 4, an association may permit a subsidiary of the association that is a regulated securities entity to hold shares of the association if the aggregate value of shares of the association held by all such subsidiaries, other than shares referred to in section 80 of the Act, does not exceed one per cent of the regulatory capital of the association.

Exception for Underwriter

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