Investment in Subsidiaries
74. (1) For the purposes of subsection 200 (1) of the Act, the following are the prescribed subsidiaries: 1. A financial institution. 2. A factoring corporation. 3. A financial leasing corporation. 4. An information services corporation. 5. An investment counselling and portfolio management corporation. 6. A mutual fund corporation. 7. A mutual fund distribution corporation. 8. A real property brokerage corporation. 9. A real property corporation. 10. A service corporation. 11. A body corporate engaging in the activities of a securities dealer. 12. A corporation registered as a mortgage broker under the Mortgage Brokers Act. 13. A body corporate that engages in two or more of the businesses or activities carried on by corporations referred to in this subsection. 14. A body corporate whose sole purpose is to hold all of the credit union’s shares in one or more of the subsidiaries described in paragraphs 1 to 13. (2) A factoring corporation is a body corporate that is restricted to acting as a factor in respect of accounts receivable, raising money for the purpose of acting as a factor and lending money while acting as a factor. (3) A financial leasing corporation is a body corporate that is restricted to, (a) engaging in financial leasing of personal property; (b) entering into and accepting assignments of conditional sales agreements in respect of personal property; (c) administering financial lease agreements and conditional sales agreements on behalf of a person; and (d) raising money for the purpose of financing its activities and investing the money until it is used for those activities. (4) An information services corporation is a body corporate that is primarily engaged in, (a) collecting, manipulating and transmitting information that is primarily financial or economic in nature or that relates to the business of an entity referred to in subsection (1); (b) providing advisory and other services in the design, development and implementation of information management systems; or (c) designing, developing and marketing computer software. Its ancillary activities may include the design, development, manufacture or sale of computer equipment that is not generally available and that is integral to the provision of financial services or information services related to the business of financial institutions. (5) An investment counselling and portfolio management corporation is a body corporate whose principal activities are either of the following: 1. Offering advice or advising about investments. 2. Investing or controlling money, property, deposits or securities that it does not own and that are not deposited with it in the ordinary course of business. This must involve the exercise of discretion and judgment. (6) A mutual fund corporation is a body corporate restricted to investing its funds. It may also be a body corporate that issues securities entitling the holder to receive, on demand or within a specified period, an amount computed by reference to the value of a proportionate interest in all or part of its net assets (including a separate fund or a trust account). (7) A mutual fund distribution corporation is a body corporate whose principal activities are acting as an agent selling and collecting payment for interests in a mutual fund. Purchasers must be told about the existence of any sales commission or service fee before buying an interest in the mutual fund. The sales proceeds, less sales commissions and service fees, must be paid to the fund. (8) A real property brokerage corporation is a body corporate that is primarily engaged in, (a) acting as an agent for vendors, purchasers, mortgagors, mortgagees, lessors or lessees of real estate; and (b) providing consulting or appraisal services with respect to real estate. (9) A real property corporation is a body corporate that is primarily engaged in holding, managing or otherwise dealing with, (a) real estate; or (b) shares of another body corporate or ownership interests in an unincorporated entity, limited partnership or trust that is primarily engaged in holding, managing or otherwise dealing with real estate. (10) A securities dealer is a body corporate that trades in securities in the capacity of principal or agent. “Trade” has the same meaning as in the Securities Act. (11) A service corporation is a body corporate that provides services exclusively to one or more of the following: 1. The credit union. 2. Subsidiaries of the credit union. 3. Financial institutions affiliated with the credit union. O. Reg. 76/95, s. 74.