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.
(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.
- 2001, c. 9, s. 465
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