Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

327 The Act is amended by adding the following after section 930:

328 Subsection 976.1(1) of the Act is replaced by the following:

1991, c. 47Insurance Companies Act

• 329 (1) Paragraphs 441(1)(d) and (d.1) of the Insurance Companies Act are replaced by the following:

  • (c.1) subject to sections 475 and 478 and the regulations, engage in any activity that relates to the provision of financial services by the company or any of its affiliates;

  • (d) subject to the regulations, engage in any of the following activities:

    • (i) collecting, manipulating and transmitting information, and

    • (ii) designing, developing, manufacturing, selling and otherwise dealing with technology, if those activities relate to

      • (A) an activity referred to in this subsection or subsection (1.1) that is engaged in by the company or any of its affiliates, or

      • (B) the provision of financial services by any other entity,

• (2) Subsection 441(1) of the Act is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (h) and by adding the following after paragraph (h):

  • (i) provide identification, authentication or verification services.

• (3) Paragraph 441(4)(a) of the Act is replaced by the following:

  • (a) respecting what a company may or may not do with respect to the carrying on of the activities referred to in any of paragraphs (1)(c.1) and (d) and subsection (1.1);

• (4) Subparagraph 441(4)(b)(ii) of the English version of the Act is replaced by the following:

  • (ii) the carrying on of the activities referred to in any of paragraphs (1)(c.1) and (d) and subsection (1.1); and

• (5) Paragraph 441(4)(c) of the Act is replaced by the following:

  • (c) respecting the circumstances in which a company may engage in the activities referred to in paragraphs (1)(c.1) and (d), including the circumstances in which a company may collect, manipulate and transmit information under subparagraph (1)(d)(i).

330 Section 442 of the Act is replaced by the following:

• 331 (1) Section 495 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) and (6) to (8), Part XI and the regulations made under paragraphs (2.2)(b) and (c), a life company 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), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a life company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of this section, the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a life company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a life company may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 495(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 493(2), paragraph 493(3)(b) or (c) or subsection 493(4); or

• (3) Section 495 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Permitted investments

    (4.1) Subject to subsections (5) to (8), Part XI and the regulations made under paragraphs (4.2)(a) and (b), a property and casualty company, or a marine company, 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), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a property and casualty company, or a marine company, is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (4.2) The Governor in Council may make regulations

    • (a) imposing, for the purposes of subsection (4.1), terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (b) respecting, for the purposes of subsection (4.1), the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (4) Subparagraph 495(5)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (4) or (4.1) or 493(2) or paragraph 493(3)(b) or (c); or

• (5) Subsection 495(7) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (d) and (d.1).

• (6) Paragraph 495(9)(a) of the Act is replaced by the following:

  • (a) the company is acquiring control of an entity, other than a specialized financing entity, under subsection (2), (2.1), (4) or (4.1) and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b) or (4)(b);

332 The Act is amended by adding the following after section 495:

333 Paragraph 528(1)(c) of the Act is replaced by the following:

• 334 (1) Paragraphs 542(2)(d) and (e) of the Act are replaced by the following:

  • (d) subject to the regulations, act as an agent for a person, or enter into any other arrangement with a person, in respect of the provision of a service by

    • (i) a financial institution that is primarily engaged in an insurance business, or

    • (ii) an entity in which a society is permitted to acquire a substantial investment under section 554, if that section were read without reference to the requirements of subsections 554(4) and (5); and

  • (e) refer any person to another person.

• (2) Section 542 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Regulations

    (6) The Governor in Council may, for the purposes of paragraphs (2)(d) and (e), make regulations

    • (a) respecting the circumstances in which a society may act;

    • (b) imposing terms and conditions in respect of what a society may do; and

    • (c) respecting what a society is prohibited from doing when acting as an agent or when making referrals.

• 335 (1) Section 554 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) and (4) and the regulations made under paragraphs (2.2)(b) and (c), a society 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 (c), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a property and casualty company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a society may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which a society may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (2.1).

• (2) Subparagraph 554(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the society, the society itself would be permitted to acquire a substantial investment in the other entity under subsection (1), (2) or (2.1) or 552(2) or paragraph 552(3)(b) or (c); or

• (3) Subsection 554(5) of the Act is replaced by the following:

  • Marginal note:Minister’s approval

    (5) Subject to the regulations, a society may not, without the prior written approval of the Minister, acquire control of, or acquire or increase a substantial investment in, a permitted entity other than an entity that a society may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1) or an entity whose activities are limited to activities that a property and casualty company is permitted to engage in under paragraph 441(1)(c.1) or (d).

336 The Act is amended by adding the following after section 554:

• 337 (1) Section 971 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Permitted investments

    (2.1) Subject to subsections (3) to (6) and the regulations made under paragraphs (2.2)(b) and (c), an insurance holding company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs 495(1)(a) to (j), if a majority, as defined in the regulations, of the entity’s business consists of financial service activities or any other activity that a company is permitted to engage in under subsection 440(2).

  • Marginal note:Regulations

    (2.2) The Governor in Council may make regulations

    • (a) defining, for the purposes of subsection (2.1), the word “majority”;

    • (b) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that an insurance holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1); and

    • (c) respecting the circumstances in which an insurance holding company may acquire control of, or acquire or increase a substantial investment in, under subsection (2.1).

• (2) Subparagraph 971(3)(d)(ii) of the Act is replaced by the following:

  • (ii) in the case of an entity that is not controlled by the insurance holding company, a company would be permitted to acquire a substantial investment in the other entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 493(4) or 495(1), (2) or (2.1); or

• (3) Subsection 971(5) of the Act is amended by adding “or” at the end of paragraph (c) and by repealing paragraphs (5)(d) and (d.1).

• (4) Paragraph 971(7)(a) of the Act is replaced by the following:

  • (a) the insurance holding company is acquiring control of an entity, other than a specialized financing entity, under subsection (2) or (2.1) and the only reason for which the insurance holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);

338 The Act is amended by adding the following after section 971: