Canada Gazette, Part I, Volume 160, Number 42: Non-Financial Activities (Insurance Companies, Societies and Insurance Holding Companies) Regulations

October 17, 2026

Statutory authority
Insurance Companies Act

Sponsoring department
Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Non-Financial Activities (Banks and Bank Holding Companies) Regulations.

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Non-Financial Activities (Insurance Companies, Societies and Insurance Holding Companies) Regulations under subsections 441(4)^{footnote a} and 495(2.2)^{footnote b} and (4.2)^{footnote c}, sections 495.1^{footnote d} and 501^{footnote e}, subsections 554(2.2)^{footnote f} and (9)^{footnote g}, sections 554.1^{footnote h} and 560^{footnote i}, subsection 971(2.2)^{footnote j} and sections 971.1^{footnote k}, 977^{footnote l} and 1021^{footnote m} of the Insurance Companies Act ^{footnote n}.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to David Tousignant, Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance, 90 Elgin Street, Ottawa, Ontario K1A 0G5 (email: David.Tousignant@fin.gc.ca).

Ottawa, October 9, 2026

Janna Rinaldi
Assistant Clerk of the Privy Council

Non-Financial Activities (Insurance Companies, Societies and Insurance Holding Companies) Regulations

Interpretation

Definitions

1 The following definitions apply in these Regulations.

Act

means the Insurance Companies Act. (Loi)

entity engaging in non-financial activities

means any entity that engages in a non-financial activity and that is either a federal financial institution or an entity that a federal financial institution, bank holding company or insurance holding company may acquire or hold control of, or acquire, hold or increase a substantial investment in, under any of subsections 495(2) and (4), 554(2) and 971(2) of the Act, subsection 453(2) of the Trust and Loan Companies Act and subsections 468(2) and 930(2) of the Bank Act. It does not include an entity of which control, or in which a substantial investment, is acquired under any other provision of the Act, the Trust and Loan Companies Act or the Bank Act. (entité exerçant des activités non financières)

majority financial services entity

means any entity that a company, society or insurance holding company, or any of its subsidiaries, may acquire or hold control of, or acquire, hold or increase a substantial investment in, under any of subsections 495(2.1) and (4.1), 554(2.1) and 971(2.1) of the Act, subsection 453(2.1) of the Trust and Loan Companies Act and subsections 468(2.1) and 930(2.1) of the Bank Act. It does not include an entity of which control, or in which a substantial investment, is acquired under any other provision of the Act, the Trust and Loan Companies Act or the Bank Act. (entité s’occupant en majeure partie de services financiers)

non-financial activity

means any activity that a company is permitted to engage in under paragraph 441(1)(c.1) or (d) of the Act. (activité non financière)

Definition of majority

2 (1) For the purposes of subsections 495(2.1) and (4.1), 554(2.1) and 971(2.1) of the Act, majority means a proportion of 60% or more, determined in accordance with subsection (2).

Determination of proportion

(2) The proportion of an entity’s business that consists of activities that a company is permitted to engage in under subsection 440(2) of the Act is equal to whichever of the following proportions is the greatest:

• (a) the proportion, expressed as a percentage, that the amount of revenue derived by the entity from those activities is of the amount of the entity’s total revenue;
• (b) the proportion, expressed as a percentage, that the amount of the entity’s operating expenses that are in respect of those activities is of the amount of the entity’s total operating expenses; or
• (c) the proportion, expressed as a percentage, that the value of the entity’s assets that are in respect of those activities is of the value of the entity’s total assets.

Quarterly or annual financial statements

(3) The amounts and values referred to in subsection (2) must be calculated based on the amounts and values reported by the entity in its four most recent quarterly financial statements or, if the entity does not prepare quarterly financial statements, its most recent annual financial statement.

Conditions and Circumstances

Non-financial activity

3 For the purposes of paragraphs 441(1)(c.1) and (d) of the Act, a company must not engage in a non-financial activity except subject to the conditions and in the circumstances that are set out in sections 5 to 12.

Control or substantial investment

4 For the purposes of subsections 495(2), (2.1), (4) and (4.1), 554(2) and (2.1) and 971(2) and (2.1) of the Act, a company, society or insurance holding company must not acquire or hold control of, or acquire, hold or increase a substantial investment in, a majority financial services entity or an entity engaging in non-financial activities except subject to the conditions and in the circumstances that are set out in sections 5 to 12.

Equity — less than $12 billion

5 (1) A company, society or insurance holding company that has equity of less than $12 billion must ensure that the sum of the following amounts does not exceed, at the end of each financial year, 15% of the value of its annual revenue:

• (a) in the case of a company, the amount of revenue derived from non-financial activities engaged in by the company,
• (b) the amount of revenue derived from any activities engaged in by any subsidiaries of the company, society or insurance holding company that are majority financial services entities, other than revenue derived from activities referred to in subsection 440(2) of the Act, and
• (c) the amount of revenue derived from non-financial activities engaged in by any subsidiaries of the company, society or insurance holding company that are entities engaging in non-financial activities.

Equity — $12 billion or more

(2) A company, society or insurance holding company that has equity of $12 billion or more must ensure that the sum of the amounts referred to in paragraphs (1)(a) to (c) does not exceed, at the end of each financial year, 10% of the value of its annual revenue.

Determination of equity

(3) For the purposes of subsections (1) and (2), the value of the equity of a company, society or insurance holding company must be determined in accordance with the Equity of an Insurance Company or Insurance Holding Company Regulations. With respect to a society, a reference in those Regulations to “company” is to be read as a reference to “society”.

Annual revenue

(4) For the purposes of subsections (1) and (2), the value of the annual revenue of a company, society or insurance holding company is, at its election,

• (a) the amount of its annual revenue as reported on a consolidated basis in its most recent annual financial statement minus the total amount of reinsurance premiums that are paid or payable by the company or society or its subsidiaries, or by subsidiaries of the insurance holding company, for the financial year for which the revenue is reported, excluding any reduction in respect of commissions, expense allowances and other considerations received or receivable; or
• (b) the average amount of its annual revenue as reported on a consolidated basis in its annual financial statements for the three most recent financial years minus the average of the total amount of reinsurance premiums that are paid or payable by the company or society or its subsidiaries, or by subsidiaries of the insurance holding company, for each of those three financial years, excluding any reduction in respect of commissions, expense allowances and other considerations received or receivable.

Regulatory capital

6 (1) A company, society or insurance holding company must ensure that the sum of the following values does not exceed, at any time, 10% of the value of its regulatory capital:

• (a) the value of the shares and other ownership interests held by the company, society or insurance holding company and its subsidiaries, whether individually or jointly, in any entities that the company, society or insurance holding company holds control of, or a substantial investment in, that are majority financial services entities or entities engaging in non-financial activities, other than the value of shares and other ownership interests held in any federal financial institutions,
• (b) the value of the outstanding loans held by the company, society or insurance holding company and its subsidiaries, whether individually or jointly, that were made to any entities that the company, society or insurance holding company holds control of, or a substantial investment in, that are majority financial services entities or entities engaging in non-financial activities, other than the value of outstanding loans that were made to any federal financial institutions, and
• (c) the value of the outstanding guarantees given by the company, society or insurance holding company and its subsidiaries, whether individually or jointly, on behalf of any entities that the company, society or insurance holding company holds control of, or a substantial investment in, that are majority financial services entities or entities engaging in non-financial activities, other than the value of outstanding guarantees given on behalf of any federal financial institutions.

Definition of value

(2) For the purposes of paragraphs (1)(a) to (c), value means

• (a) in respect of the shares, other ownership interests and outstanding loans held on a particular day, their aggregate value that would be reported on an unconsolidated basis on a balance sheet prepared on that day and in accordance with generally accepted accounting principles in Canada; and
• (b) in respect of the outstanding guarantees given on a particular day, their aggregate face value in Canadian dollars, converted using the Bank of Canada’s published exchange rate on that day.

Determination of regulatory capital

(3) For the purposes of subsection (1), the regulatory capital of a company or society must be determined in accordance with the Regulatory Capital (Insurance Companies) Regulations and the regulatory capital of an insurance holding company must be determined in accordance with the Regulatory Capital (Insurance Holding Companies) Regulations. With respect to a society, a reference in the Regulatory Capital (Insurance Companies) Regulations to “company” or “life company” is to be read as a reference to “society”.

Obligation to provide information

7 A company, society or insurance holding company that has equity of $12 billion or more must provide to the Deputy Minister of Finance, or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance,

• (a) no later than 30 days after the day on which the company, society or insurance holding company acquires control of a majority financial services entity or an entity engaging in non-financial activities,
  • (i) a description of the transaction, including the names of the parties, the amount and type of consideration and the terms and conditions of payment,
  • (ii) a description of the ownership interests acquired as a result of the transaction, including the number and percentage of each type of ownership interest acquired and the total value of the ownership interests being held after the transaction,
  • (iii) in the case where the entity is a majority financial services entity, a description of the entity’s business activities other than referred to in subsection 440(2) of the Act,
  • (iv) in the case where the entity is an entity engaging in non-financial activities, a description of the entity’s business that is in respect of non-financial activities and, for each non-financial activity,
    • (A) if the activity is an activity referred to in paragraph 441(1)(c.1) of the Act, a description of how that activity relates to the provision of financial services by the company, society or insurance holding company or by any of its affiliates, or
    • (B) if the activity is designing, developing, manufacturing, selling or otherwise dealing with technology, a description of how that activity relates to
      • (I) an activity referred to in subsection 441(1) or (1.1) of the Act that is engaged in by the company, society or insurance holding company or by any of its affiliates, or
      • (II) the provision of financial services by any other entity,
  • (v) a statement of the purpose of the transaction and a description of how it relates to the strategic plans and business objectives of the company, society or insurance holding company,
  • (vi) an indication of whether the company, society or insurance holding company intends to operate the entity as a separate and distinct entity,
  • (vii) a description of the business of the entity and that of its subsidiaries, and
  • (viii) a description of the circumstances in which the entity provides a material product or service to a competitor of the company, society or insurance holding company;
• (b) no later than 30 days after the day on which the company, society or insurance holding company acquires a substantial investment in a majority financial services entity or an entity engaging in non-financial activities, without acquiring control of that entity,
  • (i) a description of the transaction, including the names of the parties, the amount and type of consideration and the terms and conditions of payment,
  • (ii) a description of the ownership interests acquired as a result of the transaction, including the number and percentage of each type of ownership interest acquired and the total value of the ownership interests being held after the transaction,
  • (iii) in the case where the entity is a majority financial services entity, a description of the entity’s business activities other than activities referred to in subsection 440(2) of the Act,
  • (iv) in the case where the entity is an entity engaging in non-financial activities, a description of the entity’s business that is in respect of non-financial activities and, for each non-financial activity,
    • (A) if the activity is an activity referred to in paragraph 441(1)(c.1) of the Act, a description of how that activity relates to the provision of financial services by the company, society or insurance holding company or by any of its affiliates, or
    • (B) if the activity is designing, developing, manufacturing, selling or otherwise dealing with technology, a description of how that activity relates to
      • (I) an activity referred to in subsection 441(1) or (1.1) of the Act that is engaged in by the company, society or insurance holding company or by any of its affiliates, or
      • (II) the provision of financial services by any other entity,
  • (v) a statement of the purpose of the transaction and a description of how it relates to the strategic plans and business objectives of the company, society or insurance holding company, and
  • (vi) a description of the business of the entity and that of its subsidiaries; and
• (c) no later than six months after the end of each financial year,
  • (i) a description of the non-financial activities engaged in by the company — or by any entity engaging in non-financial activities that the company, society or insurance holding company held control of, or a substantial investment in, at any time during that financial year — and, for each non-financial activity,
    • (A) if the activity is an activity referred to in paragraph 441(1)(c.1) of the Act, a description of how that activity relates to the provision of financial services by the company, society or insurance holding company or by any of its affiliates, or
    • (B) if the activity is designing, developing, manufacturing, selling or otherwise dealing with technology, a description of how that activity relates to
      • (I) an activity referred to in subsection 441(1) or (1.1) of the Act that is engaged in by the company, society or insurance holding company or by any of its affiliates, or
      • (II) the provision of financial services by any other entity,
  • (ii) a description of the business of any majority financial services entities that the company, society or insurance holding company held control of, or a substantial investment in, at any time during that financial year, and
  • (iii) a description of how the company, society or insurance holding company performs the calculations under sections 2, 5 and 6.

Confidential information

8 (1) All information provided under section 7, and all information prepared from that information, is confidential and must be treated accordingly.

Clarification

(2) A company, society or insurance holding company is not required to provide information under section 7 if

• (a) it demonstrates to the Deputy Minister of Finance, or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance, that the same information has previously been provided under these Regulations or under the Non-Financial Activities (Trust and Loan Companies) Regulations, the Non-Financial Activities (Banks and Bank Holding Companies) Regulations or the Non-Financial Activities (Foreign Banks) Regulations; or
• (b) the information is in respect of activities that were carried out before the day on which these Regulations come into force.

Prohibited business

9 (1) A company must not engage in a business that includes providing temporary possession of personal property or movables, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property or movables.

Control and substantial investment

(2) A company, society or insurance holding company must not acquire or hold control of, or a substantial investment in, a majority financial services entity or an entity engaging in non-financial activities if the business of that entity includes providing temporary possession of personal property or movables, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property or movables.

Requirements of section 5 or 6

10 If a company, society or insurance holding company holds control of, or a substantial investment in, a majority financial services entity or an entity engaging in non-financial activities and if any of the requirements set out in sections 5 and 6, as applicable, are not met, the company, society or insurance holding company is deemed to have acquired, with respect to every such entity, a temporary investment in respect of which section 498, 557 or 974 of the Act applies, as the case may be.

Majority financial services entity

11 If a company, society or insurance holding company holds control of, or a substantial investment in, a majority financial services entity and that entity ceases to be a majority financial services entity because the majority of that entity’s business no longer consists of the activities that a company is permitted to engage in under subsection 440(2) of the Act, the company, society or insurance holding company is deemed to have acquired, with respect to that entity, a temporary investment in respect of which section 498, 557 or 974 of the Act applies, as the case may be.

Financial statement — preparation

12 Any financial statement referred to in these Regulations must be prepared in accordance with generally accepted accounting principles in Canada or, if it is prepared in respect of an entity that is not a Canadian entity, in accordance with generally accepted accounting principles in

• (a) the jurisdiction in which the entity was formed or incorporated;
• (b) a jurisdiction in which the entity carries on business; or
• (c) a country or territory that is a member of the World Trade Organization.

Exemptions

Activities approved by Minister

13 A company or society is not required to take into account — in making the calculations under sections 5 and 6 or providing the information required under section 7 — any non-financial activity that is carried out by the company or society, or by any entity that it holds control of, or a substantial investment in, within the scope of

• (a) an approval referred to in paragraph 441(1)(d) or (d.1) or 495(7)(d) or (d.1) or subsection 554(5) of the Act, as those provisions read from time to time before the day on which subsection 329(1) of the Budget Implementation Act, 2018, No. 1 comes into force;
• (b) an approval referred to in paragraph 410(1)(c) or (c.1) or 453(5)(d) or (d.1) of the Trust and Loan Companies Act, as those paragraphs read from time to time before the day on which subsection 310(1) of the Budget Implementation Act, 2018, No. 1 comes into force; or
• (c) an approval referred to in paragraph 410(1)(c) or (c.1) or 468(5)(d) or (d.1) of the Bank Act, as those paragraphs read from time to time before the day on which subsection 316(1) of the Budget Implementation Act, 2018, No. 1 comes into force.

Exempted activities

14 A company, society or insurance holding company is not required to take into account — in making the calculations under sections 5 and 6 or providing the information required under section 7 — any non-financial activity that is carried out by a subsidiary that is a bank in the circumstances referred to in subsection 14(1) of the Non-Financial Activities (Banks and Bank Holding Companies) Regulations.

Transitional Provision

Exempted activities — two years

15 During a period of two years that begins on the day on which these Regulations come into force, a company, society or insurance holding company is not required to take into account — in making the calculations under sections 5 and 6 or providing the information required under section 7 — any activity

• (a) that is engaged in outside Canada by the company and that is an activity referred to in paragraph 441(1)(d) of the Act, as that paragraph read from time to time before the day on which subsection 329(1) of the Budget Implementation Act, 2018, No. 1 comes into force;
• (b) that is engaged in outside Canada by an entity that the company, society or insurance holding company holds control of, or a substantial investment in, and that is an activity that referred to in paragraph 441(1)(d) of the Act, as that paragraph read from time to time before the day on which subsection 329(1) of the Budget Implementation Act, 2018, No. 1 comes into force; or
• (c) that is engaged in by an entity that the company, society or insurance holding company holds control of, or a substantial investment in, and whose business is limited to the activities that are prescribed by any of the following provisions, as they read from time to time before the day on which these Regulations come into force:
  • (i) subsection 3(1) of the Information Technology Activities (Banks) Regulations,
  • (ii) subsection 2(1) of the Information Technology Activities (Bank Holding Companies) Regulations,
  • (iii) subsection 2(1) of the Information Technology Activities (Canadian Societies) Regulations,
  • (iv) subsection 2(1) of the Information Technology Activities (Insurance Holding Companies) Regulations,
  • (v) subsection 3(1) of the Information Technology Activities (Life Companies) Regulations,
  • (vi) subsection 3(1) of the Information Technology Activities (Property and Casualty Companies and Marine Companies) Regulations,
  • (vii) subsection 3(1) of the Information Technology Activities (Trust and Loan Companies) Regulations.

Consequential Amendment to the Exemption from Restrictions on Investments (Insurance Companies, Insurance Holding Companies and Societies) Regulations

16 Sections 1 to 3 of the Exemption from Restrictions on Investments (Insurance Companies, Insurance Holding Companies and Societies) Regulations ^{footnote 1} are replaced by the following:

Life companies and insurance holding companies

1 For the purposes of subparagraphs 495(3)(d)(ii) and 971(3)(d)(ii) of the Insurance Companies Act, subsections 495(6) to (8) of that Act do not apply in determining whether a company would be permitted to acquire a substantial investment in an entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 493(4) or 495(1), (2) or (2.1) of that Act.

Property and casualty companies and marine companies

2 For the purposes of subparagraph 495(5)(d)(ii) of the Insurance Companies Act, subsections 495(6) to (8) of that Act do not apply in determining whether a company would be permitted to acquire a substantial investment in an entity under subsection 493(2), paragraph 493(3)(b) or (c) or subsection 495(1), (4) or (4.1) of that Act.

Societies

3 For the purposes of subparagraph 554(3)(d)(ii) of the Insurance Companies Act, subsections 554(4) and (5) of that Act do not apply in determining whether a society would be permitted to acquire a substantial investment in an entity under subsection 552(2), paragraph 552(3)(b) or (c) or subsection 554(1), (2) or (2.1) of that Act.

Repeals

17 The following Regulations are repealed:

• (a) the Information Technology Activities (Canadian Societies) Regulations ^{footnote 2};
• (b) the Information Technology Activities (Insurance Holding Companies) Regulations ^{footnote 3};
• (c) the Information Technology Activities (Life Companies) Regulations ^{footnote 4}; and
• (d) the Information Technology Activities (Property and Casualty Companies and Marine Companies) Regulations ^{footnote 5}.

Coming into Force

S.C. 2018, c. 12

18 These Regulations come into force on the day on which section 332 of the Budget Implementation Act, 2018, No. 1 comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

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