Specialized Financing (Retail Associations) Regulations

The Specialized Financing (Retail Associations) Regulations, made under the Cooperative Credit Associations Act, regulate specialized financing activities by retail associations. The regulations apply to acquisitions of control or substantial investments in entities engaged in financial transactions for extending credit to customers or financing their acquisition of motor vehicles, leasing motor vehicles, providing temporary possession of personal property, acting as an insurance broker or agent, or other similar activities. Retail associations are prohibited from holding control or a substantial investment in these entities if the aggregate balance sheet value exceeds $250 million or 10% of the retail association's regulatory capital. Additionally, there are limits on the length and scope of investments by retail associations in specialized financing entities. The regulations also impose ownership restrictions on non-controlling interests in specialized financing entities controlled by retail associations. Furthermore, these regulations exempt certain acquisitions of control or substantial investments from subsection 390(4) and (6) of the Act, and come into force on October 24, 2001.