Cooperative Credit Associations Act — C-41.01 390
Permitted investments 390 (1) Subject to subsections (4) to (6) and Part XII, an association may acquire control of, or acquire or increase a substantial investment in, (a) an association; (b) a bank or a bank holding company as that expression is defined in section 2 of the Bank Act ; (c) a body corporate to which the Trust and Loan Companies Act applies; (d) an insurance company, a fraternal benefit society or an insurance holding company incorporated or formed by or under the Insurance Companies Act ; (e) a trust, loan or insurance corporation incorporated or formed by or under an Act of the legislature of a province; (f) a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province; (g) an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities; or (h) an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province and that is primarily engaged outside Canada in a business that, if carried on in Canada, would be the business of banking, the business of a cooperative credit society, the business of insurance, the business of providing fiduciary services or the business of dealing in securities. Permitted investments (2) Subject to subsections (3) to (6) and Part XII, an association may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (h), whose business is limited to one or more of the following: (a) engaging in any financial service activity or in any other activity that a retail association is permitted to engage in under subsection 375(2) or section 376 or 377; (b) acquiring or holding shares of, or ownership interests in, entities in which an association is permitted under this Part to hold or acquire; (c) engaging in the provision of any services exclusively to any or all of the following, so long as the entity is providing those services to the association or any member of the association’s group: (i) the association, (ii) any member of the association’s group, (iii) any entity that is primarily engaged in the business of providing financial services, (iv) any permitted entity in which an entity referred to in subparagraph (iii) has a substantial investment, or (v) any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed; (d) engaging in any activity that a retail association is permitted to engage in, other than an activity referred to in paragraph (a) or (e), that relates to (i) the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the association or any member of the association’s group, or (ii) if a significant portion of the business of the entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services; (e) engaging in the activities referred to in the definition closed-end fund , mutual fund distribution entity , mutual fund entity or real property brokerage entity in subsection 386(1); and (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed. Restriction (3) An association may not acquire control of, or acquire or increase a substantial investment in, an entity whose business includes any activity referred to in any of paragraphs (2)(a) to (e) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include (a) activities that an association is not permitted to engage in under any of sections 378, 382 and 382.1; (b) dealing in securities, except as may be permitted under paragraph (2)(e) or