TRUST AND LOAN COMPANIES ACTRegulatory Capital (Trust and Loan Companies) RegulationsRegulations Defining the Regulatory Capital of a CompanyP.C.1992-1849 19928
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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition regulatory capital in section 2 and section 531 of the Trust and Loan Companies Act*, is pleased hereby to make the annexed Regulations defining the regulatory capital of a company.S.C. 1991, c. 45Short TitleThese Regulations may be cited as the Regulatory Capital (Trust and Loan Companies) Regulations.InterpretationIn these Regulations,Act means the Trust and Loan Companies Act; (Loi)designated entity means an entity other thanan insurance company,a securities dealer, oran entity controlled by an insurance company or a securities dealer; (entité désignée)insurance company means an insurance company that is incorporated by or under the laws of Canada or of a province; (société d’assurances)minority interest means an equity interest, in an entity that is controlled by a company, that is held by a person other thanthe company, oran entity controlled by the company; (participation minoritaire)securities dealer means an entity described in paragraph (g) of the definition financial institution in section 2 of the Act. (négociant en valeurs mobilières)Regulatory CapitalSubject to subsection (2) and section 4, the regulatory capital of a company, at a particular time, is the aggregate of the amounts ofshareholders equity,minority interests, andsubordinated indebtednessthat 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 313(4) of the Act, less the amount of goodwill that would be included in those financial statements.In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only ifthe security is, by its terms, subordinate in right of payment to all deposit liabilities and all 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;the security is issued and fully paid-up; andin respect of subordinated indebtedness or a preferred share, the securityhas an initial minimum term of five years or more or has no term, andcannot be redeemed or purchased for cancellation in the first five years after it is issued.SOR/94-64, s. 2For the purposes of sections 464 to 466 of the Act, the regulatory capital of a company is the amount calculated under section 3, less the aggregate ofthe amounts of shareholders’ equity and subordinated indebtedness of an insurance company or securities dealer controlled by the company, or an entity controlled by such an insurance company or securities dealer, that are included in the amount of regulatory capital of the company calculated pursuant to section 3,the amount of investments, other than shareholders’ equity or subordinated indebtedness referred to in paragraph (a), of the company or a designated entity controlled by the company in an insurance company or securities dealer controlled by the company, or in an entity controlled by such an insurance company or securities dealer, where the investments are part of the capital of the insurance company or securities dealer,the amount of loans, other than subordinated indebtedness referred to in paragraph (a), made by the company or by a designated entity controlled by the company to an insurance company or securities dealer controlled by the company, or to an entity controlled by such an insurance company or securities dealer, where the loans are part of the capital of the insurance company or securities dealer, andthe amount of a minority interest in an insurance company or securities dealer controlled by the company, or in an entity controlled by such an insurance company or securities dealer, that is included in the amount of regulatory capital of the company calculated pursuant to section 3.For the purposes of paragraphs (1)(b)and (c), capital meansin respect of an insurance company to which the Insurance Companies Act applies, regulatory capital within the meaning of the Regulatory Capital (Insurance Companies) Regulations; andin respect of any other insurance company or a securities dealer, an amount that would be treated as capital by a regulatory body that regulates that insurance company or securities dealer.SOR/2001-425, s. 1