The Office of the Superintendent of Financial Institutions reports that the Guidelines Respecting Control in Fact (Bank Act and Insurance Companies Act) proposed by the Department of Finance received final approval on April 17, and are published in the May 8, 2002, issue of the Canada Gazette, Part II.
The guidelines set out the policy objectives and factors that the Minister would consider in assessing whether a person, who is seeking permission to acquire up to 20% of the voting shares and/or 30% of the non-voting shares in a bank with equity of $5 billion or more, or a large demutualized insurer, would be in compliance of the prohibition of any person controlling a large bank or large demutualized insurer.
OSFI says the policy objectives to be considered are:
- preserving the benefits of the ownership rules for banks;
- allowing banks to manage their day-to-day operations and to develop their strategic visions by taking into account their best interests, as opposed to the best interests of any single shareholder or any group of shareholders; and
- allowing investors in banks to exercise the degree of influence necessary to gain the benefits of their investments.