Information Technology Activities (Foreign Banks) Regulations — 2
Prescribed activity 2 (1) For the purposes of paragraph 522.08(1)(f) of the Act and subject to subsections (2) to (4), a prescribed activity in relation to a Canadian entity is developing, designing, holding, managing, manufacturing, selling or otherwise dealing with any data transmission system, information site, communication device or information platform or portal that is used to provide information services. Limit on size of investment — foreign bank (2) A foreign bank may not acquire or hold control of, or a substantial investment in, a Canadian entity engaging in an activity described in subsection (1) if the sum of the following exceeds the lesser of 5% of the foreign bank’s regulatory capital and $1 billion: (a) the aggregate balance sheet value of the shares and ownership interests that the foreign bank would acquire in the Canadian entity under paragraph 522.08(1)(f) of the Act; (b) the aggregate balance sheet value of the shares and ownership interests held, whether individually or jointly, by the foreign bank and the entities associated with the foreign bank in Canadian entities engaging in an activity described in subsection (1) that the foreign bank or any entity associated with the foreign bank holds control of, or a substantial investment in, under paragraph 522.08(1)(f) of the Act; and (c) the aggregate value of outstanding loans made by the foreign bank and the entities associated with the foreign bank, whether individually or jointly, to Canadian entities engaging in an activity described in subsection (1) that the foreign bank or any entity associated with the foreign bank holds control of, or a substantial investment in, under paragraph 522.08(1)(f) of the Act. Limit on size of investment — entity associated with a foreign bank (3) An entity associated with a foreign bank may not acquire or hold control of, or a substantial investment in, a Canadian entity engaging in an activity described in subsection (1) if the sum of the following exceeds the lesser of 5% of the foreign bank’s regulatory capital and $1 billion: (a) the aggregate balance sheet value of the shares and ownership interests that the entity associated with the foreign bank would acquire in the Canadian entity under paragraph 522.08(1)(f) of the Act; (b) the aggregate balance sheet value of the shares and ownership interests held, whether individually or jointly, by the entity associated with the foreign bank, the foreign bank and any other entity associated with the foreign bank in Canadian entities engaging in an activity described in subsection (1) that the entity associated with the foreign bank, the foreign bank or any other entity associated with the foreign bank holds control of, or a substantial investment in, under paragraph 522.08(1)(f) of the Act; and (c) the aggregate value of outstanding loans made by the entity associated with the foreign bank, the foreign bank and any other entity associated with the foreign bank, whether individually or jointly, to Canadian entities engaging in an activity described in subsection (1) that the entity associated with the foreign bank, the foreign bank or any other entity associated with the foreign bank holds control of, or a substantial investment in, under paragraph 522.08(1)(f) of the Act. Restricted activities (4) A foreign bank or an entity associated with a foreign bank may not acquire or hold control of, or a substantial investment in, a Canadian entity engaging in an activity described in subsection (1) if the activities of the Canadian entity include (a) activities that a bank is not permitted to engage in under any of sections 412, 417 and 418 of the Act; (b) dealing in securities, except as may be permitted under paragraph 522.08(1)(e) of the Act or as may be permitted to a bank under paragraph 409(2)(c) of the Act; (c) dealing in goods, wares or merchandise that a bank is not permitted to deal in under subsection 410(2) of the Act, other than as permitted under subsection (1); (d) a