Securities Dealing Restrictions (Insurance Companies) Regulations

The Securities Dealing Restrictions (Insurance Companies) Regulations were made by His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 468 of the Insurance Companies Act. These Regulations restrict dealing in Canada in securities by a company and came into effect on June 1, 1992.

The regulations limit the types of securities dealings that insurance companies can engage in, with specific restrictions on primary distribution, secondary market trading, and acting as selling agents. The main restrictions include:

• Primary distribution of shares or ownership interests


• Secondary market trading in shares or ownership interests


• Primary distribution of debt obligations of a body corporate


• Acting as a selling agent in connection with the distribution of mutual funds

However, there are some exceptions to these restrictions, including:

• Dealing in securities for the company's own account or on behalf of an administered account


• Dealing in certain types of government-backed securities


• Participating in secondary market trading through a registered broker


• Acting as a member of a selling group in connection with underwriting securities


• Effecting private placements of securities

These Regulations are intended to ensure that insurance companies do not engage in risky or unsuitable investment activities.