Subsidiaries Holding Bank Shares (Banks) Regulations (SOR/92-313)

Short Title

1 These Regulations may be cited as the Subsidiaries Holding Bank Shares (Banks) Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Bank Act; (Loi)

distribution

distribution means distribution as defined in subsection 273(3) of the Act; (mise en circulation)

regulated securities entity

regulated securities entity means a financial institution whose primary business is dealing in securities and that is regulated in its securities dealings by an Act of Parliament or of the legislature of a province or by the laws of a foreign country. (entité de valeurs mobilières réglementée)

Holding of Bank’s Shares by Subsidiary

3 For the purposes of paragraph 70(c) of the Act, subject to section 4, a bank may permit a subsidiary of the bank that is a regulated securities entity to hold shares of the bank if the aggregate value of shares of the bank held by all such subsidiaries, other than shares referred to in section 72 of the Act, does not exceed one per cent of the regulatory capital of the bank.

Exception for Underwriter

4 Where a subsidiary of a bank is a regulated securities entity and is acting as a securities underwriter in connection with a distribution of shares of the bank, the bank may permit the subsidiary to hold shares of the bank in excess of the limit set out in section 3 until the distribution is ended.