Memorandum 17-6 "Definition of ‘Listed Financial Institution'" July 2014

Dealer/broker examples

8. Subparagraph 149(1)(a)(iii)…generally includes a person whose principal business is that of an investment dealer, stock and bond broker, securities trader, or an insurance agent or broker.

Meaning of "principal"

11. … CRA considers that "principal" refers to the person's chief or main business activity.

"Credit union"

15. The term "credit union" includes a caisse populaire. [See 17.8]

Non-licensed "insurer"

17. A person who is not an insurer as defined… but whose principal business is providing insurance under insurance policies is also a listed financial institution…[f]or example, a person whose principal business is issuing…accident and sickness insurance… .

Money-lender examples/Fincos

21. Generally…a finance company, acceptance company, factor, venture capitalist, or a loan, mortgage, or investment company is…[included] in subparagraph 149(1)(a)(viii)…[as is a] person whose principal business is lending money to related corporations or purchasing debt securities from related corporations…[as s.] 149(4) does not apply for purposes of determining whether the person is a listed financial institution… .

FI v. listed FI

30. …[W]here a person acquires a business as a going concern from a person who, immediately before that time was a financial institution, the person acquiring the business is considered to be a financial institution for the remainder of the taxation year if the acquired business is continued as the purchaser's principal business immediately after the purchase. However, the person acquiring the business would be considered to be a listed financial institution only if it is a person referred to paragraph 149(1)(a).