Investments in Permitted Infrastructure Entities Regulations — 8
Regulatory capital of society 8 (1) A society must not acquire control of, or acquire or increase a substantial investment in, a permitted infrastructure entity if the sum of the following values is greater than 20% of the society’s regulatory capital: (a) the value of all shares and other ownership interests held by the society or any of its subsidiaries, whether individually or jointly, in all the permitted infrastructure entities that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act; (b) the value of the outstanding principal of all loans held by the society or any of its subsidiaries, whether individually or jointly, and made to permitted infrastructure entities that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act; and (c) the value of the outstanding guarantees given by the society or any of its subsidiaries, whether individually or jointly, on behalf of all permitted infrastructure entities that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act. Prohibition (2) If the sum of the values set out in paragraphs (1)(a) to (c) is greater than 20% of a society’s regulatory capital, the society must not and must not permit its subsidiaries to (a) acquire additional shares of or other ownership interests in, or acquire loans made to, a permitted infrastructure entity that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act; (b) make new loans or guarantees or increase the value of the loans or guarantees referred to in paragraphs (1)(b) and (c); or (c) acquire control of, or amalgamate or merge with, an entity that holds (i) shares of or other ownership interests in a permitted infrastructure entity that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act, or (ii) loans to or guarantees on behalf of a permitted infrastructure entity that the society, or any of its subsidiaries that is a life company, holds control of or has a substantial investment in, if that control or substantial investment was acquired under subsection 495(2.1) or 554(2.1) of the Act. Determination of regulatory capital (3) For the purposes of this section, the regulatory capital of a society must be determined in accordance with the Regulatory Capital (Insurance Companies) Regulations . A reference in those Regulations to a “company” or “life company” is to be read as a reference to a “society”.