GI-2026-42-reg4: Non-Financial Activities (Trust and Loan Companies) Regulations

Trust and loan companies are the primary businesses affected. Smaller companies with equity under $12 billion must keep revenue from non-financial activities under 15% of total annual revenue, while larger companies ($12 billion or more in equity) face a tighter 10% cap. All affected companies must also ensure their combined exposure to non-financial and majority financial services entities does not exceed 10% of regulatory capital. Larger companies face additional reporting obligations — they must file detailed transaction disclosures within 30 days of acquiring control of or a substantial investment in a non-financial entity, plus annual reports within six months of each financial year-end. Companies cannot engage in or invest in businesses that provide customers with temporary possession of personal property (such as vehicle leasing) for non-financing purposes.