Regulatory Capital (Trust and Loan Companies) Regulations (SOR/92-530)

Regulations are current to 2019-06-20

Regulatory Capital (Trust and Loan Companies) Regulations

SOR/92-530

TRUST AND LOAN COMPANIES ACT

Registration 1992-08-31

Regulations Defining the Regulatory Capital of a Company

P.C. 1992-1849  1992-08-27

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition regulatory capital in section 2 and section 531 of the Trust and Loan Companies ActFootnote *, is pleased hereby to make the annexed Regulations defining the regulatory capital of a company.

Short Title

 These Regulations may be cited as the Regulatory Capital (Trust and Loan Companies) Regulations.

Interpretation

 In these Regulations,

Act

Act means the Trust and Loan Companies Act; (Loi)

designated entity

designated entity means an entity other than

  • (a) an insurance company,

  • (b) a securities dealer, or

  • (c) an entity controlled by an insurance company or a securities dealer; (entité désignée)

insurance company

insurance company means an insurance company that is incorporated by or under the laws of Canada or of a province; (société d’assurances)

minority interest

minority interest means an equity interest, in an entity that is controlled by a company, that is held by a person other than

  • (a) the company, or

  • (b) an entity controlled by the company; (participation minoritaire)

securities dealer

securities dealer means an entity described in paragraph (g) of the definition financial institution in section 2 of the Act. (négociant en valeurs mobilières)

Regulatory Capital

  •  (1) Subject to subsection (2) and section 4, the regulatory capital of a company, at a particular time, is the aggregate of the amounts of

    • (a) shareholders equity,

    • (b) minority interests, and

    • (c) subordinated indebtedness

    that would be reported in the financial statements of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 313(4) of the Act, less the amount of goodwill that would be included in those financial statements.

  • (2) In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if

    • (a) the security is, by its terms, subordinate in right of payment to all deposit liabilities and all other liabilities of the entity that issued the security, other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;

    • (b) the security is issued and fully paid-up; and

    • (c) in respect of subordinated indebtedness or a preferred share, the security

      • (i) has an initial minimum term of five years or more or has no term, and

      • (ii) cannot be redeemed or purchased for cancellation in the first five years after it is issued.

  • SOR/94-64, s. 2
  •  (1) For the purposes of sections 464 to 466 of the Act, the regulatory capital of a company is the amount calculated under section 3, less the aggregate of

    • (a) the amounts of shareholders’ equity and subordinated indebtedness of an insurance company or securities dealer controlled by the company, or an entity controlled by such an insurance company or securities dealer, that are included in the amount of regulatory capital of the company calculated pursuant to section 3,

    • (b) the amount of investments, other than shareholders’ equity or subordinated indebtedness referred to in paragraph (a), of the company or a designated entity controlled by the company in an insurance company or securities dealer controlled by the company, or in an entity controlled by such an insurance company or securities dealer, where the investments are part of the capital of the insurance company or securities dealer,

    • (c) the amount of loans, other than subordinated indebtedness referred to in paragraph (a), made by the company or by a designated entity controlled by the company to an insurance company or securities dealer controlled by the company, or to an entity controlled by such an insurance company or securities dealer, where the loans are part of the capital of the insurance company or securities dealer, and

    • (d) the amount of a minority interest in an insurance company or securities dealer controlled by the company, or in an entity controlled by such an insurance company or securities dealer, that is included in the amount of regulatory capital of the company calculated pursuant to section 3.

  • (2) For the purposes of paragraphs (1)(b)and (c), capital means

  • SOR/2001-425, s. 1
Date modified: