Hyperlawhypertext legal database Regulatory Capital (Insurance Companies) Regulations current to 2019-06-21

SOR-92-529 Regulatory Capital (Insurance Companies) Regulations

Current to 2019-06-21 · last amended 2006-03-22

Contents
Provision

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition regulatory capital in subsection 2(1) and section 703 of the Insurance Companies Act*, is pleased hereby to make the annexed Regulations defining the regulatory capital of a company. S.C. 1991, c. 47

Short Title

s. 1

These Regulations may be cited as the Regulatory Capital (Insurance Companies) Regulations.

Interpretation

s. 2

In these Regulations,

s. 2, definition “act”

Act means the Insurance Companies Act; (Loi)

s. 2, definition “designated entity”

designated entity[Repealed, SOR/2001-423, s. 1]

s. 2, definition “liabilities”

liabilities includes deferred taxes and subordinated indebtedness; (passif)

s. 2, definition “minority interest”

minority interest means an equity interest, in an entity that is controlled by a company, that is held by a person other than

s. 2, definition “minority interest”, para (a)

the company, or

s. 2, definition “minority interest”, para (b)

an entity controlled by the company. (participation minoritaire)

Regulatory Capital

s. 3
s. 3(1)

Subject to subsection (2), the regulatory capital of a company, at any time, is the amount determined by the formula A - B where A is the total of the following amounts that would be reported in the financial statements of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act: the amount of minority interests, the amount of subordinated indebtedness, the amount of the excess of assets over liabilities, and in respect of a life company, the amount of the total deferred realized capital gains less the total deferred realized capital losses from real estate and share transactions of the company or any other life company controlled by it; and B is the amount of goodwill that would be included in those financial statements.

s. 3(2)

In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if

s. 3(2)(a)

the security is, by its terms, subordinate in right of payment to the policy liabilities and the other liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;

s. 3(2)(b)

the security is issued and fully paid up; and

s. 3(2)(c)

in respect of subordinated indebtedness or a preferred share, the security

s. 3(2)(c)(i)

has an initial minimum term of five years or more or has no term, and

s. 3(2)(c)(ii)

cannot be redeemed or purchased for cancellation in the first five years after it is issued.

s. 4

[Repealed]