Vol. 146, No. 24 — November 21, 2012

Registration

SOR/2012-233 November 1, 2012

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT

Regulations Amending the Assessment of Financial Institutions Regulations, 2001

P.C. 2012-1452 November 1, 2012

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 23(3) (see footnote a) and section 38 (see footnote b) of the Office of the Superintendent of Financial Institutions Act (see footnote c), makes the annexed Regulations Amending the Assessment of Financial Institutions Regulations, 2001.

REGULATIONS AMENDING THE ASSESSMENT OF FINANCIAL INSTITUTIONS REGULATIONS, 2001

AMENDMENTS

1. Section 1 of the Assessment of Financial Institutions Regulations, 2001 (see footnote 1) is amended by adding the following in alphabetical order:

“approved mortgage insurer” means an approved mortgage insurer within the meaning of section 2 of the Protection of Residential Mortgage or Hypothecary Insurance Act or a corporation or company that is treated as if it were an approved mortgage insurer in accordance with subsection 6(4) or 7(1) of that Act, respectively. ( assureur hypothécaire agréé)

2. Section 2 of the Regulations is amended by striking out “and” at the end of paragraph (e), by adding “and ″ at the end of paragraph (f) and by adding the following after paragraph (f):

  • (g) the minimum required capital that was reported by each approved mortgage insurer in its annual return prepared in accordance with subsection 665(1) of the Insurance Companies Act during the fiscal year ending on March 31 of that year.

3. Subsection 7(2) of the Regulations is replaced by the following:

(2) The base assessment of a financial institution that is an insurance company, other than one referred to in section 6, shall, for any fiscal year, be equal to

  • (a) the greater of
    • (i) $10,000, and
    • (ii) the amount determined by the formula
    • (C – D) × A / B
  • where
    • A is the total amount of net revenue or the total amount of net premiums ascertained under paragraph 2(d), (e) or (f), as the case may be, in respect of the financial institution, less 25 per cent of the amount, if any, by which that total amount exceeds $100 million,
    • B is the aggregate of the amounts determined for A, in respect of all financial institutions that are insurance companies, other than those referred to in section 6, those assessed under subparagraph (a)(i) and those referred to in subsection 3(2),
    • C is the amount by which the amount of expenses, ascertained under subsection 23(1) of the Act, incurred for or in connection with the administration of the Insurance Companies Act and the Green Shield Canada Act and attributable to financial institutions that are insurance companies, other than those referred to in section 6, exceeds the total of any service charges, assessment surcharges and other revenues relating to the administration of those Acts and attributable to those institutions in respect of that fiscal year, and
    • D is the aggregate of all the amounts assessed under subparagraph (a)(i); or
  • (b) if the financial institution is an approved mortgage insurer, the aggregate of the amount determined under paragraph (a) and the amount determined by the formula
  • C × A / B
  • where
    • A is the minimum required capital ascertained under paragraph 2(g) in respect of the financial institution,
    • B is the aggregate of the amounts determined for A in respect of all financial institutions that are approved mortgage insurers, other than those referred to in subsection 3(2), and
    • C is the amount of expenses, ascertained under subsection 23(1) of the Act, incurred for or in connection with the administration of the Protection of Residential Mortgage or Hypothecary Insurance Act in respect of that fiscal year.

COMING INTO FORCE

4. These Regulations come into force on the day on which section 25 of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act , chapter 15 of the Statutes of Canada, 2011, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears, following SOR/2012-231, Protection of Residential Mortgage or Hypothecary Insurance Regulations.

Footnote a
S.C. 2001, c. 9, s. 473(2)

Footnote b
S.C. 2001, c. 9, s. 477

Footnote c
R.S., c. 18 (3rd Supp.), Part Ⅰ

Footnote 1
SOR/2001-177