GI-2026-42-reg2: Non-Financial Activities (Foreign Banks) Regulations

Foreign banks authorized to operate in Canada and their associated entities are the primary businesses affected. If your foreign bank group has aggregate equity under $12 billion, non-financial activity revenues must stay under the lesser of $1.5 billion or 15% of group revenues; larger groups face a tighter 10% cap. Foreign banks with aggregate group equity of $12 billion or more also face mandatory disclosure requirements to the Department of Finance within 30 days of acquiring control of or substantial investment in qualifying entities, plus annual reporting within six months of year-end. Businesses involved in consumer vehicle or personal property rentals (i.e., operating leases not tied to financing) are outright prohibited from being acquired or held by foreign bank groups.