B.C. Reg. 598/2004, deposited December 13, 2004, pursuant to the FINANCIAL INSTITUTIONS ACT [Section 289]. Order in Council 1261/2004, approved and ordered December 13, 2004.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that, effective December 31, 2004, the Investment and Lending Regulation, B.C. Reg. 330/90, is amended as set out in the attached Schedule.

— G. M. COLLINS, Minister of Finance; S. BOND, Presiding Member of the Executive Council.

Schedule

1 Section 1 of the Investment and Lending Regulation, B.C. Reg. 330/90, is amended by striking out the definitions of "financial institution" and "trust company".

2 Section 2 is repealed and the following substituted:

Interpretation

2 In this regulation:

"extraprovincial corporation" means an extraprovincial credit union or an extraprovincial trust corporation authorized to carry on deposit business, whose primary jurisdiction is not Canada or a province designated under section 158 (5) of the Act;

"financial institution" means a credit union or insurance company.

3 Section 3 is amended

(a) by striking out everything before paragraph (a) and substituting "The following are prescribed for the purpose of section 136 (5) of the Act as matters that must be contained in the investment and lending policy of a financial institution or extraprovincial corporation:", and

(b) by repealing paragraphs (h) and (i) and substituting the following:

(h) in the case of a credit union authorized to carry on deposit business, or an extraprovincial corporation, procedures for monitoring and managing interest rate risk, including procedures for monitoring and comparing financial asset cash flow profiles and financial liability cash flow profiles;

(i) in the case of a credit union authorized to carry on deposit business, or an extraprovincial corporation, a requirement that at least a specified percentage of its total assets be held in low risk investments;

(j) the powers and duties of any committees or officers to whom the power to make investments or loans is delegated from the directors and any conditions to which the delegations are subject;

(k) an upper limit on the aggregate amount of money that the financial institution and its subsidiaries or the extraprovincial corporation and its subsidiaries may

(i) lend under all loans, and

(ii) commit under all guarantees or other financial obligations, to any combination of one person and that person's associates.

4 Section 5 is amended by striking out "a trust company or" and substituting "an extraprovincial corporation or" and by striking out "the trust company or" and substituting "the extraprovincial corporation or".

5 The following sections are added:

Exemption from sections 136 (3) to (5),
137, 138 (1) (c) and 140 to 143 of the Act

6.1 Sections 136 (3) to (5), 137, 138 (1) and 140 to 143 of the Act do not apply to the following:

(a) a trust company;

(b) an extraprovincial trust corporation that is authorized to carry on trust business only;

(c) an extraprovincial insurance corporation.

When section 138 (1) (d) of the Act does not apply
to a financial institution

6.2 (1) For the purpose of section 141 (2) (a) of the Act, section 138 (1) (d) does not apply to a financial institution or extraprovincial corporation that directly or indirectly acquires, holds or controls more than 10% of the voting shares in a corporation or more than 10% interest in any entity that carries on one or more of the following types of businesses or activities:

(a) banking;

(b) insurance business;

(c) trust business, deposit business or both;

(d) the business of a broker or underwriter of or dealer in securities;

(e) mutual fund investment;

(f) a business or activity specified in section 2 of the Prescribed Types of Businesses Regulation.

(2) Despite subsection (1), a financial institution or an extraprovincial corporation may not directly or indirectly acquire, hold or control

(a) voting shares or interest in a corporation or entity engaged in a type of business or activity referred to in subsection (1) (d) to (f) if the acquisition, holding or control would result in the financial institution or extraprovincial corporation directly or indirectly acquiring, holding or controlling a total investment in all those corporations and entities that exceeds 5% in the aggregate of the financial institution's or extraprovincial corporation's assets, or

(b) voting shares or interest in a corporation or other entity engaged in a type of business or activity referred to in subsection (1) (f), or in a venture capital corporation as defined in section 141 of the Act, if the acquisition, holding or control results in an investment of more than 2% of its assets.

6 Section 7 is amended

(a) in paragraph (b) by striking out "a trust company or" and substituting "an extraprovincial corporation or", and

(b) in paragraph (b) (ii) by striking out "trust company or" and substituting "extraprovincial corporation or".

Copyright © 2004: Queen's Printer, Victoria, British Columbia, Canada