Substantial investments by way of specialized financing activities
 9. (1) Subject to subsections (2) to (7), an insurer may make substantial investments in other entities by way of specialized financing activities.  O. Reg. 121/08, s. 9 (1). (2) An insurer shall not, by way of specialized financing activities, acquire, hold or increase a substantial investment in, (a) an entity that is a financial institution for the purposes of Part XVII of the Act; (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle; (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property; (d) an entity that acts as an insurance broker or agent in Canada.  O. Reg. 121/08, s. 9 (2). (3) An insurer shall not, by way of specialized financing activities, hold a substantial investment in an entity for more than 13 consecutive years.  O. Reg. 121/08, s. 9 (3). (4) An insurer shall not, by way of specialized financing activities, acquire, hold or increase a substantial investment in an entity if the total book value of the shares and ownership interests that are held or would be held in the entity by the insurer, all subsidiaries of the insurer and all specialized financing entities of the insurer exceeds or would exceed $250 million.  O. Reg. 121/08, s. 9 (4). (5) An insurer shall not, by way of specialized financing activities, acquire, hold or increase a substantial investment in an entity if the sum of the following exceeds or would exceed 10 per cent of the insurer’s capital: 1. The total book value of all shares and ownership interests that the insurer and its subsidiaries, whether individually or jointly, would hold in the entity. 2. The total value of all outstanding loans made by the insurer and its subsidiaries, whether individually or jointly, to specialized financing entities of the insurer. 3. The total book value of all shares and ownership interests held by the insurer and its subsidiaries, whether individually or jointly, in, i. specialized financing entities of the insurer, and ii. entities, other than the entity referred to in paragraph 1, in which the insurer holds a substantial investment by way of specialized financing activities.  O. Reg. 121/08, s. 9 (5). (6) An insurer shall not, by way of specialized financing activities, acquire, hold or increase a substantial investment in an entity controlled by a specialized financing entity of the insurer or in an entity in which the specialized financing entity of the insurer holds a substantial investment, if the sum of the following exceeds or would exceed 25 per cent of the insurer’s capital: 1. The total book value of all shares and ownership interests held by the insurer and its subsidiaries, whether individually or jointly, in the specialized financing entity and in entities in which the specialized financing entity holds a substantial investment. 2. The total value of all outstanding loans that the insurer and its subsidiaries, whether individually or jointly, have made to the specialized financing entity and to entities in which the specialized financing entity holds a substantial investment.  O. Reg. 121/08, s. 9 (6). (7) An insurer shall not, by way of specialized financing activities, acquire, hold or increase a substantial investment in an entity, other than by way of an investment by a specialized financing entity controlled by the insurer, if the sum of the following exceeds or would exceed 25 per cent of the insurer’s capital: 1. The total book value of all shares and ownership interests that the insurer and its subsidiaries, whether individually or jointly, would acquire in the entity. 2. The total book value of all shares and ownership interests held by the insurer and its subsidiaries, whether individually or jointly, in entities in which the insurer holds a substantial investment by way of specialized financing activities, other than entities in which the insurer has acquired a substantial investment by way of an investment by a specialized financing entity of the insurer. 3. The total value of all outstanding loans that the insurer and its subsidiaries, whether individually or jointly, have made to entities in which the insurer holds a substantial investment by way of specialized financing activities, other than entities in which the insurer has acquired a substantial investment by way of an investment by a specialized financing entity of the insurer.  O. Reg. 121/08, s. 9 (7). (8) For the purposes of this section and section 10, an entity is a specialized financing entity of an insurer if it is a specialized financing entity in which the insurer holds a substantial interest.  O. Reg. 121/08, s. 9 (8).