Subsidiaries that Hold Bank Holding Company Shares Regulations

SOR/2001-433

Registration 4 October, 2001

BANK ACT

Subsidiaries that Hold Bank Holding Company Shares Regulations

P.C. 2001-1804 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 Subsidiaries that Hold Bank Holding Company Shares Regulations.

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

SUBSIDIARIES THAT HOLD BANK HOLDING COMPANY SHARES REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

"Act" « Loi »

"Act" means the Bank Act. (Loi)

"distribution" « mise en circulation »

"distribution" means

(a) a trade by or on behalf of a bank holding company in securities of the bank holding company that have not previously been issued; or

(b) a trade in previously issued securities of a bank holding company from the holdings of any person or group of persons who act in concert and who hold in excess of 10% of the shares of any class of voting shares of the bank holding company. (mise en circulation)

"regulated securities entity" « entité de valeurs mobilières réglementée »

"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 HOLDING COMPANY'S SHARES BY SUBSIDIARY

Where subsidiary may hold shares

2. For the purpose of paragraph 714(c) of the Act, a bank holding company may, subject to section 3, permit a subsidiary of the bank holding company that is a regulated securities entity to hold shares of the bank holding company if the aggregate value of shares of the bank holding company held by all subsidiaries of the bank holding company that are regulated securities entities, other than shares referred to in section 716 of the Act, does not exceed 1% of the regulatory capital of the bank holding company.

Exception for securities underwriter

3. If a subsidiary of a bank holding company is a regulated securities entity and is acting as a securities underwriter in connection with a distribution of shares of the bank holding company, the bank holding company may permit the subsidiary to hold shares of the bank holding company in excess of the limit set out in section 2 until the distribution is ended.

COMING INTO FORCE

Coming into force

4.* These Regulations come into force on the day on which section 714 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.]