Capital reduction, reinsurance, and bank address change

Summary#

This Canada Gazette page publishes three short notices.

• BNY Trust Company of Canada plans to ask the federal regulator for permission to reduce the stated capital of its common shares by up to $26.5 million.
• Canadian Northern Shield Insurance Company says it will ask the Minister of Finance on or after November 12, 2024 for approval to transfer most of its policy liabilities to Intact Insurance Company.
• Equitable Bank moved the Alberta office that accepts enforcement notices to a new Calgary address (moved on October 5, 2024). The page itself was published on October 12, 2024.

What it does#

• BNY Trust Company of Canada

  • Says its sole shareholder passed a resolution on September 12, 2024 to reduce the stated capital for its common shares by up to $26.5 million.
  • The company will apply to the Superintendent under the Trust and Loan Companies Act (Canada) for approval of that reduction.
  • The notice emphasizes that publishing this does not mean approval will be given.

• Canadian Northern Shield Insurance Company

  • Intends to apply under the Insurance Companies Act (Canada) to have Intact Insurance Company assume substantially all of its policy liabilities on an assumption reinsurance basis.
  • The proposed agreement will be available for policyholders to inspect at CNS’s head office for 30 days after the notice was published.

• Equitable Bank

  • Under the Support Orders and Support Provisions (Banks and Authorized Foreign Banks) Regulations made under the Bank Act (Canada), the bank has changed the Alberta office designated to receive enforcement notices to 909 11th Avenue SW, Suite 1300, Calgary, Alberta T2R 0E7.

Who's affected#

• BNY Trust Company of Canada’s sole shareholder (the resolution says the reduced amount would be distributed to that shareholder).
• Policyholders of Canadian Northern Shield Insurance Company, because their policies and who ultimately pays claims could be affected if the reinsurance is approved.
• People, lawyers, and agencies in Alberta who serve enforcement notices on Equitable Bank; they need the new Calgary address.
• The federal regulators named (the Superintendent of Financial Institutions and the Minister of Finance) because they must decide whether to approve these applications.

Why it matters#

• A capital reduction at BNY Trust Company of Canada could mean money is paid to its sole shareholder rather than kept in the company. That can affect the company’s capital cushions, though approval is required and is not guaranteed.
• If Canadian Northern Shield Insurance Company is reinsured by Intact Insurance Company, policyholders may see changes in who handles claims and policy administration. Policyholders have the right to see the proposed agreement for 30 days after publication.
• The Equitable Bank address change matters for anyone who needs to serve legal or enforcement papers in Alberta. Using the old address could delay or invalidate service.