Insurance Companies Act

Marginal note:Disclosure of status

• 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.

• Marginal note:Manner of disclosure

  (2) The disclosure shall be

  • (a) in a prospectus, information circular or other offering document related to the borrowing or in a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or

  • (b) in any other manner that may be prescribed.

• Marginal note:Exception for certain borrowings

  (3) Subsection (1) does not apply

  • (a) to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or

  • (b) except as may be provided in any regulations, to a borrowing

    • (i) from a person in an amount of $150,000 or more, or

    • (ii) through the issue of instruments in denominations of $150,000 or more.

• Marginal note:Exception

  (4) Subsection (1) does not apply if the non-insurance entity is

  • (a) an insurance holding company or a bank holding company;

  • (b) a bank;

  • (c) an entity that is controlled by a bank holding company or in which a bank holding company has a substantial investment;

  • (d) a trust, loan or insurance corporation incorporated under an Act of Parliament or of the legislature of a province;

  • (e) a financial institution that is described in paragraph (g) of the definition financial institution in section 2;

  • (f) an entity referred to in paragraph 971(1)(f) or (h); or

  • (g) a prescribed entity.