Regulations for Permitted Infrastructure Investments (Insurance Companies Act)
Enabling Act: Insurance Companies Act
Regulations under the Insurance Companies Act would establish the terms and conditions under which life insurance companies, fraternal benefit societies and insurance holding companies are permitted to acquire controlling or non-controlling substantial investments in permitted infrastructure entities. This would enable insurers to make long-term investments in public infrastructure that generate predictable returns to support their assets-liabilities matching needs and make them more resilient financially.
Regulatory Cooperation Efforts (Domestic and International)
On regulatory matters related to federally-regulated financial institutions in Canada, the Department of Finance Canada works closely with financial sector agencies, including the Office of the Superintendent of Financial institutions, Canada Deposit Insurance Corporation, Financial Consumer Agency of Canada and the Bank of Canada.
The Department of Finance Canada regularly works to align the financial regulatory framework with Canada’s international agreements and the work of the international organizations, such as the Financial Action Task Force, the International Monetary Fund, and the Financial Stability Board.
Potential Impacts on Canadians, including Businesses
The regulatory initiative could improve the financial resilience of federally regulated life insurers and provide a new source of public infrastructure financing in Canada in support of the Government’s infrastructure agenda for Canadian communities.
The Department consulted with the Canadian Life and Health Insurance Association and a number of individual life insurance companies in Summer 2020 and Fall 2021. Other interested stakeholders will have an opportunity to review and comment on the proposed regulations as part of the formal regulation-making process when the regulatory proposal is pre-published in the Canada Gazette, Part I.
Departmental Contact Information
Director General, Financial Institutions Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin St.
Ottawa, Ontario K1A 0G5
Date Regulatory Initiative First Included in Forward Regulatory Plan: July 2020
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