Canadian, Chinese regulators to oversee Chinese insurers’ investments in Canada

Eight Canadian securities regulators are cooperating with the China Insurance Regulatory Commission (CIRC) to regulate Chinese insurance firms’ overseas investments in Canadian firms and recognized markets.The CIRC is authorized by the Chinese State Council to conduct administration, supervision and regulation of the Chinese insurance market, and to ensure that the insurance industry operates in compliance with the law.The regulatory cooperation arrangement paves the way for Chinese insurers to invest in financial products on Canadian markets regulated by participating jurisdictions in Canadian Securities Administrators (CSA).The agreement is expected to facilitate capital flowing from China into the Canadian market and create new business opportunities for market participants in Canada.The securities regulators of Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Québec and Saskatchewan have entered into the arrangement.”The CSA attaches considerable importance to Canada’s eligibility as a destination for investments by Chinese insurers,” said Jean St-Gelais, chairman of the CSA and president and CEO of the Autorité des marchés financiers (AMF). “The fact that this is only the third arrangement of this nature signed by the CIRC with foreign regulators is a clear statement by the CIRC about the strength of Canada’s capital markets and the quality of its regulatory framework.”