Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 1021 a of the Insurance Companies Act b, hereby makes the annexed Aggregate Financial Exposure (Insurance Companies) Regulations. S.C. 2001, c. 9, s. 465 S.C. 1991, c. 47
Interpretation
In these Regulations, Act means the Insurance Companies Act.
Aggregate Financial Exposure
For the purpose of subsection 528.2(1) of the Act, the aggregate financial exposure of a company is the amount determined by the formula A + B + C - D where A is the book value of all investments by the company and its subsidiaries in securities of the related party; B is the total of the principal amounts of all outstanding loans to the related party that are held by the company and its subsidiaries, other than loans referred to in paragraph 525(a) of the Act, and deposits made for clearing purposes with a financial institution that is a direct clearer or a member of a clearing group under the by-laws of the Canadian Payments Association; C is the total of all outstanding amounts in respect of endorsements, acceptances or guarantees by the company and its subsidiaries on behalf of the related party, other than guarantees referred to in paragraph 525(a) of the Act; and D is the total of all amounts included in the value of A, B and C in respect of transactions referred to in section 522 of the Act.
Coming into Force
These Regulations come into force on the day on which section 528.2 of the Insurance Companies Act, as enacted by section 429 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, comes into force.[Note: Regulations in force October 24, 2001, see SI/2001-102.]