Interpretation

Marginal note:Definition of "Act"

1 In these Regulations, "Act" means the Insurance Companies Act.

Exemptions

Marginal note:Exempt distributions

2 Sections 296 to 298 and 300 to 306 of the Act do not apply in respect of a distribution

• (a) outside Canada or to persons residing outside Canada;

• (b) that consists solely of trades made between an insurance holding company, or a person or group of persons referred to in paragraph 296(b) of the Act, and not more than 25 persons, if the trades result in not more than 25 persons being beneficial owners of the securities so traded;

• (c) that consists of a trade or trades made in the course of

  • (i) a transaction under which an insurance holding company acquires ownership of the assets of an entity that in turn ceases to exist, or

  • (ii) an amalgamation by an insurance holding company with one or more other bodies corporate;

• (d) that is in the form of

  • (i) a share issued as a share dividend,

  • (ii) shares issued to shareholders of an insurance holding company as a result of the exercise of a pre-emptive right referred to in section 751 of the Act,

  • (iii) shares issued to shareholders of an insurance holding company as a result of the exercise of a right to purchase additional shares of the insurance holding company,

  • (iv) shares issued as a result of the exercise of options or rights granted to directors, officers or employees of an insurance holding company, or

  • (v) any other securities transferred or issued as a result of the exercise by a person of a right to purchase, convert or exchange shares;

• (e) in respect of which no prospectus is required to be filed under the laws of, or under a policy or practice in effect in, the province in which the distribution is to be made; or

• (f) that is made in accordance with a short-form prospectus system under the laws of, or under a policy or practice in effect in, the province in which the distribution is to be made.

Marginal note:Information

3 When an insurance holding company or other person applies to the Superintendent under section 300 of the Act for the exemption of a proposed distribution from the application of sections 296 to 298 and 301 to 306 of the Act, the insurance holding company or other person must send the Superintendent a copy of all information that is required to be provided to the authority charged with the administration of the laws, policy or practice regarding distributions in the jurisdiction in which the distribution is to be made.

Coming into Force

Marginal note:Coming into force

4.* These Regulations come into force on the day on which section 883 of the Insurance Companies Act, as enacted by section 465 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.

• ^*[Note: Regulations in force October 24, 2001, see SI/2001-102.]