Bank Act — B-1.01 468
Permitted investments 468 (1) Subject to subsections (4) to (6) and Part XI, a bank may acquire control of, or acquire or increase a substantial investment in (a) a bank; (b) a bank holding company; (c) a body corporate to which the Trust and Loan Companies Act applies; (d) an association to which the Cooperative Credit Associations Act applies; (e) an insurance company or a fraternal benefit society incorporated or formed by or under the Insurance Companies Act ; (f) an insurance holding company; (g) a trust, loan or insurance corporation incorporated or formed by or under an Act of the legislature of a province; (h) a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province; (i) 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 (j) 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 XI, a bank 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 (j), whose business is limited to one or more of the following: (a) engaging in any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d) or any other activity that a bank is permitted to engage in under section 410 or 411 or that a federal credit union is permitted to engage in under section 417.1; (b) acquiring or holding shares of, or ownership interests in, entities in which a bank 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 bank or any member of the bank’s group, namely, (i) the bank, (ii) any member of the bank’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 bank 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 bank or any member of the bank’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 464(1); and (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed. Restriction (3) A bank 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 a bank is not permitted to engage in under any of sections 412, 417 and 418; (b) dealing in securities, except as may be permitt