Bill C-8
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the Superintendent may, by order, require the
insurance holding company, within any period
that the Superintendent considers reasonable,
to do all things necessary to ensure that the
insurance holding company no longer controls
the body corporate or unincorporated entity or
has the ability to veto or otherwise defeat any
proposal referred to in paragraph (b).
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Divestment
order
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(3) If
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the Superintendent may, by order, require the
insurance holding company, within any period
that the Superintendent considers reasonable,
to do all things necessary to ensure that the
insurance holding company no longer has a
substantial investment in the entity to which
the undertaking relates.
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Exception
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(4) Subsection (2) does not apply in respect
of an entity in which an insurance holding
company has a substantial investment
permitted by this Division.
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Deemed
temporary
investment
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986. If an insurance holding company
controls or has a substantial investment in an
entity as permitted by this Division and the
insurance holding company becomes aware of
a change in the business or affairs of the entity
that, if the change had taken place before the
acquisition of control or of the substantial
investment, would have caused the entity not
to be a permitted entity or would have been
such that approval for the acquisition would
have been required under subsection 971(5) or
(6), the insurance holding company is deemed
to have acquired, on the day the insurance
holding company becomes aware of the
change, a temporary investment in respect of
which section 974 applies.
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Asset
transactions
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987. (1) An insurance holding company
shall not, and shall not permit its subsidiaries
to, without the approval of the
Superintendent, acquire assets from a person
or transfer assets to a person if
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A + B > C
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where
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A is the value of the assets;
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B is the total value of all assets that the
insurance holding company and its
subsidiaries acquired from or transferred
to that person in the twelve months ending
immediately before the acquisition or
transfer; and
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C is ten per cent of the total value of the
assets of the insurance holding company,
as shown in the last annual statement of the
insurance holding company prepared
before the acquisition or transfer.
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Exception
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(2) The prohibition referred to in subsection
(1) does not apply to
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Exception
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(3) The approval of the Superintendent is
not required if
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Value of
assets
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(4) For the purposes of ``A'' in subsection
(1), the value of the assets is
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Total value of
all assets
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(5) For the purposes of subsection (1), the
total value of all assets that the insurance
holding company or any of its subsidiaries has
acquired during the period of twelve months
referred to in subsection (1) is the purchase
price of the assets or, if the assets are shares of,
or ownership interests in, an entity the assets
of which immediately after the acquisition
were included in the annual statement of the
insurance holding company, the fair market
value of the assets of the entity at the date of
the acquisition.
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Total value of
all assets
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(6) For the purposes of subsection (1), the
total value of all assets that the insurance
holding company or any of its subsidiaries has
transferred during the period of twelve months
referred to in subsection (1) is the book value
of the assets as stated in the last annual
statement of the insurance holding company
prepared before the transfer, or if the assets are
shares of, or ownership interests in, an entity
the assets of which were included in the last
annual statement of the insurance holding
company before the transfer, the value of the
assets of the entity as stated in the annual
statement.
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Transitional
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988. Nothing in this Division requires
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But if the loan or investment would be
precluded or limited by this Division, the
amount of the loan or investment may not be
increased after that date.
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Saving
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989. A loan or investment referred to in
section 988 is deemed not to be prohibited by
the provisions of this Division.
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Meaning of
``non-insuran
ce entity''
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990. (1) Subject to subsection (2), for the
purpose of section 991, ``non-insurance
entity'' means a Canadian entity, other than a
company, that is controlled by an insurance
holding company or in which an insurance
holding company has a substantial
investment.
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Exception
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(2) A Canadian entity is not a non-insurance
entity by reason only that a subsidiary of an
insurance holding company that is a company
that controls, or has a substantial investment,
in the Canadian entity.
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Disclosure of
status
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991. (1) A non-insurance entity that carries
on as part of its business the provision of
financial services shall not borrow money in
Canada from the public without disclosing
that the non-insurance entity is not regulated
as a financial institution in Canada.
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Manner of
disclosure
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(2) The disclosure shall be
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Exception for
certain
borrowings
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(3) Subsection (1) does not apply
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Exception
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(4) Subsection (1) does not apply if the
non-insurance entity is
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DIVISION 10 |
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ADEQUACY OF CAPITAL AND LIQUIDITY |
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Adequacy of
capital and
liquidity
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992. (1) An insurance holding company
shall, in relation to its business, maintain
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and comply with any regulations in relation to
capital and liquidity.
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Regulations
and guidelines
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(2) The Governor in Council may make
regulations and the Superintendent may make
guidelines respecting the maintenance by an
insurance holding company of adequate
capital and adequate and appropriate forms of
liquidity.
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Directives
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(3) Even if an insurance holding company
is complying with regulations or guidelines
made under subsection (2), the
Superintendent may, by order, direct the
insurance holding company
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Compliance
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(4) An insurance holding company shall
comply with an order made under subsection
(3) within the time specified by the
Superintendent in the order.
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DIVISION 11 |
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REGULATION OF INSURANCE HOLDING COMPANIES |
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Supervision
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Returns
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Required
information
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993. An insurance holding company shall
provide the Superintendent with such
information, at such times and in such form as
the Superintendent may require.
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Names of
directors and
auditors
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994. (1) An insurance holding company
shall, within thirty days after each annual
meeting of the insurance holding company,
provide the Superintendent with a return
showing
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Changes
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(2) Where
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the insurance holding company shall
forthwith provide the Superintendent with
such information as is required to maintain the
return in a complete and accurate form.
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Copy of
by-laws
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995. An insurance holding company shall
send to the Superintendent within thirty days
after the coming into effect of a by-law or an
amendment to a by-law, a copy of the by-law
or amendment.
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Register for
insurance
holding
company
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996. (1) The Superintendent shall, in
respect of each insurance holding company,
cause a register to be maintained containing a
copy of
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Form
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(2) The register may be maintained in
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Access
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(3) Persons are entitled to reasonable access
to the register and may make copies of or take
extracts from the information in it.
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