Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 4Various Measures (continued)
DIVISION 3Financial Sector (continued)
SUBDIVISION AFinancial Institutions (continued)
132 (1) Subsection 930(7) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):
(d) subject to subsection (7.1), the bank holding company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(c) or (d) and
A/B < C
where
- A
- is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
(i) the target entity’s consolidated assets,
(ii) the assets of the bank holding company and of any subsidiary of the bank holding company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and
(iii) the consolidated assets of any entity referred to in paragraph 4(c) or (d) the control of which is acquired by the bank holding company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),
- B
- is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
- C
- is
(e) the bank holding company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and
A/B < C
where
- A
- is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
(i) the shares of, or other ownership interests in, the target entity that the bank holding company or a subsidiary of the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,
(ii) the shares of, or other ownership interests in, the target entity that are held by the bank holding company or a subsidiary of the bank holding company and that were acquired by the bank holding company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and
(iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the bank holding company the control of which was acquired by the bank holding company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),
- B
- is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
- C
- is
(2) Section 930 of the Act is amended by adding the following after subsection (7):
Marginal note:No exception for deemed acquisition
(7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 928(6).
1991, c. 47Insurance Companies Act
133 (1) Subsection 495(9) of the Insurance Companies Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):
(d) subject to subsection (9.1), the company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (6)(b) or (c) and
A/B < C
where
- A
- is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
(i) the target entity’s consolidated assets,
(ii) the assets of the company and of any subsidiary of the company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and
(iii) the consolidated assets of any entity referred to in paragraph (6)(b) or (c) the control of which is acquired by the company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),
- B
- is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
- C
- is
(e) the company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and
A/B < C
where
- A
- is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
(i) the shares of, or other ownership interests in, the target entity that the company or a subsidiary of the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,
(ii) the shares of, or other ownership interests in, the target entity that are held by the company or a subsidiary of the company and that were acquired by the company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and
(iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the company the control of which was acquired by the company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),
- B
- is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
- C
- is
(2) Section 495 of the Act is amended by adding the following after subsection (9):
Marginal note:No exception for deemed acquisition
(9.1) The exception in paragraph (9)(d) does not apply with respect to a deemed acquisition of control under subsection 493(7).
- Date modified: