Exemption from Approval for Certain Investments in Intragroup Service Entities (Bank Act) Regulations

SOR/2003-242

Registration 18 June, 2003

BANK ACT

Exemption from Approval for Certain Investments in Intragroup Service Entities (Bank Act) Regulations

P.C. 2003-993 18 June, 2003

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraphs 474(b)^a, 522.23(b)^b and 936(b)^c and section 978^c of the Bank Act^d, hereby makes the annexed Exemption from Approval for Certain Investments in Intragroup Service Entities (Bank Act) Regulations.

^a S.C. 2001, c. 9, s. 127^b S.C. 2001, c. 9, s. 132^c S.C. 2001, c. 9, s. 183^d S.C. 1991, c. 46

EXEMPTION FROM APPROVAL FOR CERTAIN INVESTMENTS IN INTRAGROUP SERVICE ENTITIES (BANK ACT) REGULATIONS

EXEMPTION FROM APPROVAL

Exemption -- banks

1. Subsections 468(5) and (6) of the Bank Act do not apply to a bank's acquisition of control of, or a bank's acquisition or increase of a substantial investment in, an entity referred to in paragraph 468(4)(c) of that Act if the financial intermediary activities of the entity that expose the entity to material market or credit risk are limited to providing services exclusively to the bank or members of the bank's group.

Exemption -- foreign banks and associated entities

2. Paragraph 522.22(1)(b) of the Bank Act does not apply to a foreign bank's or, in the case of an entity associated with a foreign bank, the entity's acquisition of control of an entity if the financial intermediary activities of the controlled entity that expose the controlled entity to material market or credit risk are limited to providing services exclusively to the foreign bank or members of the foreign bank's group.

Exemption -- bank holding companies

3. Subsections 930(5) and (6) of the Bank Act do not apply to a bank holding company's acquisition of control of, or a bank holding company's acquisition or increase of a substantial investment in, an entity referred to in paragraph 930(4)(c) of that Act if the financial intermediary activities of the entity that expose the entity to material market or credit risk are limited to providing services exclusively to the bank holding company or members of the bank holding company's group.

COMING INTO FORCE

Coming into force

4. These Regulations come into force on the day on which they are registered.