Specialized Financing (Insurance Holding Companies) Regulations

The Specialized Financing (Insurance Holding Companies) Regulations, made under the Insurance Companies Act, regulate the acquisition and holding of shares or ownership interests by insurance holding companies in specialized financing entities. The regulations aim to prevent undue influence and control over life companies acquired through investments in specialized financing entities. Key provisions include restrictions on the amount of debt that can be held by a specialized financing entity and its subsidiaries, as well as limits on the aggregate balance sheet value of shares and ownership interests held by the insurance holding company and its subsidiaries. The regulations also specify conditions under which an insurance holding company can acquire or hold control of a specialized financing entity without being considered to have acquired or increased control over a life company. The regulations apply to specialized financing entities that are controlled by the insurance holding company or in which it has a substantial investment, and come into force on the day they are registered.