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)
1991, c. 47Insurance Companies Act
145 Subsection 490(1) of the Insurance Companies Act is amended by adding the following in alphabetical order:
- business growth fund
business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)
146 The Act is amended by adding the following after section 492:
Marginal note:Limit — business growth fund
492.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a company and its subsidiaries hold must not exceed $200,000,000.
Marginal note:Application
(2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
147 (1) Subsection 493(1) of the Act is replaced by the following:
Marginal note:Restriction on control and substantial investments
493 (1) Subject to subsections (2) to (4.4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
(2) Section 493 of the Act is amended by adding the following after subsection (4):
Marginal note:Business growth fund
(4.1) Subject to section 492.1, subsections (4.2) to (4.4) and Part XI, a company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.
Marginal note:For greater certainty
(4.2) For greater certainty, a company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.
Marginal note:Prohibition — entity
(4.3) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
(a) an entity referred to in any of paragraphs 495(1)(a) to (j);
(b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
(c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
(d) an entity that acts as an insurance broker or agent in Canada; or
(e) an entity that is engaged in any prescribed activity.
Marginal note:Prohibition — capital and loans
(4.4) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
(a) all ownership interests that are held by the company, the company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
(b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
148 The Act is amended by adding the following after section 551:
Marginal note:Limit — business growth fund
551.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a society and its subsidiaries hold must not exceed $200,000,000.
Marginal note:Application
(2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
149 (1) Subsection 552(1) of the Act is replaced by the following:
Marginal note:Restriction on control and substantial investments
552 (1) Subject to subsections (2) to (3.4), no society shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
(2) Section 552 of the Act is amended by adding the following after subsection (3):
Marginal note:Business growth fund
(3.1) Subject to section 551.1 and subsections (3.2) to (3.4), a society may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.
Marginal note:For greater certainty
(3.2) For greater certainty, a society is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.
Marginal note:Prohibition — entity
(3.3) A society is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
(a) an entity referred to in any of paragraphs 495(1)(a) to (j);
(b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
(c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
(d) an entity that acts as an insurance broker or agent in Canada; or
(e) an entity that is engaged in any prescribed activity.
Marginal note:Prohibition — capital and loans
(3.4) A society is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
(a) all ownership interests that are held by the society, the society’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
(b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
150 The Act is amended by adding the following after section 968:
Marginal note:Limit — business growth fund
968.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that an insurance holding company and its subsidiaries hold must not exceed $200,000,000.
Marginal note:Application
(2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
151 (1) Subsection 969(1) of the Act is replaced by the following:
Marginal note:Restriction on control and substantial investments
969 (1) Subject to subsections (2) to (3.4), no insurance holding company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
(2) Section 969 of the Act is amended by adding the following after subsection (3):
Marginal note:Business growth fund
(3.1) Subject to section 968.1 and subsections (3.2) to (3.4), an insurance holding company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.
Marginal note:For greater certainty
(3.2) For greater certainty, an insurance holding company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.
Marginal note:Prohibition — entity
(3.3) An insurance holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
(a) an entity referred to in any of paragraphs 971(1)(a) to (j);
(b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
(c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
(d) an entity that acts as an insurance broker or agent in Canada; or
(e) an entity that is engaged in any prescribed activity.
Marginal note:Prohibition — capital and loans
(3.4) An insurance holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
(a) all ownership interests that are held by the insurance holding company, the insurance holding company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
(b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
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