Cooperative Credit Associations Act — C-41.01 390
ntity 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 as may be permitted either to an association under paragraph 376(1)(f) or to a retail association under subparagraph 376(1)(i)(ii); (c) activities that an association is not permitted to engage in under section 381 if the entity engages in the activities of a finance entity or of any other entity as may be prescribed; (d) acquiring control of or acquiring or holding a substantial investment in another entity unless (i) in the case of an entity that is controlled by the association, the association itself would be permitted under this Part to acquire a substantial investment in the other entity, or (ii) in the case of an entity that is not controlled by the association, the association itself would be permitted to acquire a substantial investment in the other entity under subsection (1) or (2) or 388(2), paragraph 388(3)(b) or (c) or subsection 388(4); or (e) any prescribed activity. Exception (3.1) Despite paragraph (3)(a), an association may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied: (a) the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and (b) if the entity engages in other business, that business is limited to engaging in one or more of the following: (i) the activities of a mutual fund distribution entity, (ii) any activity that an association is permitted to engage in under subsection 376(2), and (iii) the provision of investment counselling services and portfolio management services. Control (4) Subject to subsection (8) and the regulations, an association may not acquire control of, or acquire or increase a substantial investment in, (a) an entity referred to in any of paragraphs (1)(a) to (h), unless (i) the association controls, within the meaning of paragraph 3(1)(e), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or (ii) the association is permitted by regulations made under paragraph 396(a) to acquire or increase the substantial investment; (b) an entity whose business includes one or more of the activities referred to in paragraph (2)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the entity to material market or credit risk, including a finance entity, a factoring entity and a financial leasing entity, unless (i) the association controls, within the meaning of paragraph 3(1)(e), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or (ii) the association is permitted by regulations made under paragraph 396(a) to acquire or increase the substantial investment; or (c) an entity whose business includes an activity referred to in paragraph (2)(b), including a specialized financing entity, unless (i) the association controls, within the meaning of paragraph 3(1)(e), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, (ii) the association is permitted by regulations made under paragraph 396(a) to acquire or increase the substantial investment, or (iii) subject to prescribed terms and conditions, if any are prescribed, the activities of the entity do not include the acquisition or holding of control of, or the acquisition or holding of shares or other ownership interests in, an entity referred to in paragraph (a) or (b) or an entity that is not a permitted entity. Minister’s approval (5) Subject to the regulations, an association may not, without the prior written approval of the Minister, (a) acquire control of an entity referred to in any of paragraphs (1)(e) to (g) from a person