Equity of a Bank or a Bank Holding Company Regulations

SOR/2001-377

Registration 4 October, 2001

BANK ACT

Equity of a Bank or a Bank Holding Company Regulations

P.C. 2001-1748 4 October, 2001

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 978^a of the Bank Act^b, hereby makes the annexed Equity of a Bank or a Bank Holding Company Regulations.

^a S.C. 2001, c. 9, s. 183^b S.C. 1991, c. 46

EQUITY OF A BANK OR A BANK HOLDING COMPANY REGULATIONS

INTERPRETATION

Definitions

1. (1) The following definitions apply in these Regulations.

"Act" « Loi »

"Act" means the Bank Act. (Loi)

"eligible Canadian financial institution" « institution financière canadienne admissible »

"eligible Canadian financial institution" has the same meaning as in subsection 370(1) of the Act. (institution financière canadienne admissible)

"eligible foreign institution" « institution étrangère admissible »

"eligible foreign institution" has the same meaning as in subsection 370(1) of the Act. (institution étrangère admissible)

"trust and loan company" « société de fiducie et de prêt »

"trust and loan company" means a body corporate to which the Trust and Loan Companies Act applies or a trust or loan corporation incorporated by or under an Act of the legislature of a province. (société de fiducie et de prêt)

Financial statement equity

(2) For the purposes of these Regulations, the financial statement equity of an entity is the sum of the shareholders' equity of the entity and the minority interests in entities controlled by the entity, as they appear in the consolidated financial statements of the entity.

Acting in concert

(3) If two or more persons are deemed under section 9 of the Act, for the purposes of Part VII or Division 7 of Part XV of the Act, to be a single person who is acquiring beneficial ownership of the aggregate number of shares of a bank or bank holding company or shares or ownership interests of an entity that are beneficially owned by them, those persons are deemed, for the purposes of these Regulations, to be a single person who has acquired beneficial ownership of the aggregate number of shares of the bank or bank holding company or shares or ownership interests of the entity that are beneficially owned by them.

DETERMINATION OF THE EQUITY OF A BANK OR A BANK HOLDING COMPANY

Where an entity's equity is its financial statement equity

2. For the purposes of the Act, the equity of an entity is its financial statement equity if the entity is

(a) a widely held bank or any other bank that is not controlled by any person;

(b) a widely held bank holding company or any other bank holding company that is not controlled by any person;

(c) a bank controlled by a widely held bank holding company;

(d) a bank holding company controlled by a widely held bank holding company;

(e) a bank controlled by a widely-held insurance holding company;

(f) a bank holding company controlled by a widely-held insurance holding company;

(g) a bank controlled by an eligible Canadian financial institution;

(h) a bank holding company controlled by an eligible Canadian financial institution;

(i) a bank that is not controlled by any person other than an eligible foreign institution or a subsidiary of the eligible foreign institution; or

(j) a bank holding company that is not controlled by any person other than an eligible foreign institution or a subsidiary of the eligible foreign institution.

Bank's equity by reference to its group

3. For the purposes of the Act, if the equity of a bank is not determined under section 2, the equity of the bank is the sum of

(a) the financial statement equity of the bank, if the bank is not controlled by a bank, bank holding company or trust and loan company, and

(b) all amounts each of which is the financial statement equity of an affiliate of the bank that is a bank, bank holding company or trust and loan company and that is not controlled by a bank, bank holding company or trust and loan company.

Bank holding company's equity by reference to its group

4. For the purposes of the Act, if the equity of a bank holding company is not determined under section 2, the equity of the bank holding company is the sum of

(a) the financial statement equity of the bank holding company, if the bank holding company is not controlled by a bank, bank holding company or trust and loan company, and

(b) all amounts each of which is the financial statement equity of an affiliate of the bank holding company that is a bank, bank holding company or trust and loan company and that is not controlled by a bank, bank holding company or trust and loan company.

COMING INTO FORCE

Coming into force

5.* These Regulations come into force on the day on which section 978 of the Bank Act, as enacted by section 183 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.]