A-32.1, r. 0.1 - Regulation respecting the acquisition and holding of securities or participations or a share of a right of ownership by certain financial institutions in excess of the limits imposed

Updated to 14 November 2024

This document has official status.

chapter A-32.1, r. 0.1

Regulation respecting the acquisition and holding of securities or participations or a share of a right of ownership by certain financial institutions in excess of the limits imposed

Insurers Act

(chapter A-32.1, s. 85, 1st par.).

Act respecting financial services cooperatives

(chapter C-67.3, s. 474, 1st par., and s. 599, 1st par., subpar. 10).

Deposit Institutions and Deposit Protection Act

(chapter I-13.2.2, s. 28.32).

Trust Companies and Savings Companies Act

(chapter S-29.02, s. 69).

1. This Regulation applies to the following authorized financial institutions:

(1)  an authorized Québec insurer under the Insurers Act (chapter A-32.1);

(2)  a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C-67.3);

(3)  an authorized Québec deposit institution under the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2);

(4)  an authorized Québec trust company under the Trust Companies and Savings Companies Act (chapter S-29.02).

O.C. 510-2022, s. 1.

1.1. The purpose of this Regulation is to determine the cases, other than those provided by the Insurers Act (chapter A-32.1), the Act respecting financial services cooperatives (chapter C-67.3), the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) and the Trust Companies and Savings Companies Act (chapter S-29.02), in which an authorized financial institution may acquire and hold contributed capital securities issued by a legal person or partnership or participations in a trust or a share of a right of ownership, in excess of the limits imposed in the Acts referred to in section 1.

O.C. 1519-2024, s. 1.

2. An authorized financial institution may acquire and hold contributed capital securities issued by a legal person or partnership or participations in a trust or a share of a right of ownership if this is done through a limited partnership or a trust of which it is the holder of control, but whose financial information is not consolidated or combined with its own, in accordance with the Acts referred to in section 1.

O.C. 510-2022, s. 2; O.C. 1519-2024, s. 2.

2.1. An authorized financial institution may acquire and hold contributed capital securities of a legal person if

(1)  the legal person’s principal activity is the offering or the soliciting of shares in investment portfolios, the making of loans, the distribution of securities, including bonds or contributed capital securities of legal persons, factoring, leasing, the offering of computing services or actuarial advisory services;

(2)  the legal person’s principal activity is the purchase, holding, leasing, sale, operation or administration of an immovable;

(3)  the legal person’s principal activity is complementary to the distribution of certain insurance products such as travel assistance, legal assistance and road assistance;

(4)  the legal person is registered as a firm under the Act respecting the distribution of financial products and services (chapter D-9.2);

(5)  the legal person offers financial products and services only outside Québec; or

(6)  the legal person is registered as a mutual fund dealer under the Securities Act (chapter V-1.1) or registered as such under extra-provincial securities laws within the meaning of section 305.1 of that Act.

An authorized financial institution may also acquire and hold contributed capital securities of a partnership or participations in a trust if the principal activity of the trust or partnership corresponds to one of the activities referred to in subparagraphs 1 to 3 of the first paragraph as well as, in cases where that partnership is a limited partnership, the contributed capital securities of its general partner.

O.C. 1519-2024, s. 2.

2.2. An authorized financial institution other than a mutual company that is a member of a federation may acquire and hold contributed capital securities of a legal person or a partnership or participations in a trust if the legal person, partnership or trust operates a residential and long-term care center.

O.C. 1519-2024, s. 2.

2.3. An authorized financial institution may, where it acquires or holds contributed capital securities of a legal person whose principal activity corresponds to the activity referred to in subparagraph 2 of the first paragraph of section 2.1, acquire and hold a share of a right of ownership in an immovable referred to in that subparagraph.

O.C. 1519-2024, s. 2.

2.4. An authorized financial institution may acquire and hold a share of a right of ownership in an immovable if the immovable comprises units to be sold or leased, or in land, if the acquisition and holding are done for the purposes of building such an immovable.

O.C. 1519-2024, s. 2.

2.5. An authorized financial institution may acquire and hold a share of a right of ownership in an immovable or another asset if the immovable or other asset is of public utility.

O.C. 1519-2024, s. 2.

2.6. An authorized financial institution may acquire and hold a share of a right of ownership in a contract if the contract pertains to an immovable or an asset referred to in any of sections 2.3 to 2.5.

O.C. 1519-2024, s. 2.

3. (Omitted).

O.C. 510-2022, s. 3.

REFERENCES

O.C. 510-2022, 2022 G.O. 2, 1007

O.C. 1519-2024, 2024 G.O. 2, 3944