Specialized Financing (Trust And Loan Companies) Regulations

Here is a brief overview of the Specialized Financing (Trust And Loan Companies) Regulations:

The Regulations come into force on October 4, 2001, and apply to specialized financing activities under subsection 451(4) of the Trust and Loan Companies Act. The regulations set out conditions for companies to engage in specialized financing activities, including limits on investments, length of investment, maximum authorized investment, limit of 10% of regulatory capital, and a 25% limit on regulatory capital.

Companies are prohibited from acquiring control of or holding, acquiring, or increasing a substantial investment in certain entities, including leasing companies, temporary possession providers, insurance brokers, and agents. The regulations also set out limits on the aggregate balance sheet value of shares and ownership interests that can be held by a company and its subsidiaries in an entity.

The Regulations also impose restrictions on the acquisition of specialized financing entities by companies, including requirements for non-controlling interests and prohibitions on holding control of or a substantial investment in an entity for more than 13 consecutive years.