P-40.1, r. 3 - Regulation respecting the application of the Consumer Protection Act

Section 170 Disposition versions

2018-01-11

170. The financial report referred to in section 169 and the financial report prescribed in subparagraph a of section 94.2 must include the financial statements for the last fiscal year of the business, including that of the reserve account. Such financial statements must be prepared according to generally accepted accounting principles and include an auditor’s report or a review engagement report.

The financial report must also include an actuary’s report containing an actuary’s certificate attesting that the reserves are not less than the amounts prescribed in section 260.7 of the Act and in section 168.1 of this Regulation, in that they constitute a good and sufficient provision to guarantee obligations arising from any contracts of additional warranty made by the merchant and contain the additional reserves required or, where the opposite is true, an actuary’s certificate indicating what percentage of the amounts received for the contracts should be deposited into the reserve account in accordance with section 260.8 of the Act in order to constitute a good and sufficient provision and to contain the additional reserves required, and attesting that the reserves declared to constitute a good and sufficient provision have been calculated according to generally recognized actuarial principles and adequate assumptions in regard to the merchant’s financial position and the contracts he makes.

The financial report must also include proof that the merchant has complied with section 171.

The actuary referred to in the second paragraph must be a member of the Canadian Institute of Actuaries having the title of “Fellow”.

O.C. 1978-85, s. 15; O.C. 1150-89, s. 7; O.C. 848-94, s. 24; O.C. 1244-2017, s. 25.

2012-09-01

170. The financial report referred to in section 169 and the financial report prescribed in subparagraph a of section 94.2 must include the financial statements for the last fiscal year of the business, including that of the reserve account. Such financial statements must be prepared according to generally accepted accounting principles and audited according to generally accepted auditing standards.

The financial report must also include an actuary’s report containing an actuary’s certificate attesting that the reserves are not less than the amounts prescribed in section 260.7 of the Act and in section 168.1 of this Regulation, in that they constitute a good and sufficient provision to guarantee obligations arising from any contracts of additional warranty made by the merchant and contain the additional reserves required or, where the opposite is true, an actuary’s certificate indicating what percentage of the amounts received for the contracts should be deposited into the reserve account in accordance with section 260.8 of the Act in order to constitute a good and sufficient provision and to contain the additional reserves required, and attesting that the reserves declared to constitute a good and sufficient provision have been calculated according to generally recognized actuarial principles and adequate assumptions in regard to the merchant’s financial position and the contracts he makes.

The financial report must also include proof that the merchant has complied with section 171.

The actuary referred to in the second paragraph must be a member of the Canadian Institute of Actuaries having the title of “Fellow”.

O.C. 1978-85, s. 15; O.C. 1150-89, s. 7; O.C. 848-94, s. 24.