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Originally Posted by Mr.Coffee
So, the LMR rating thing needing to be over 2.0 is pretty brutal (depending on your perspective).
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Well with the non-sensical ruling in the Redwater case something like this was coming down no doubt.
You only need a 2.0 LMR if you are purchasing assets.
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Effective immediately, and pending the earlier of the outcome of the Redwater litigation or the implementation of appropriate regulatory measures, the AER has implemented the following changes to minimize risks to Albertans.
- The AER will consider and process all applications for licence eligibility under Directive 067: Applying for Approval to Hold EUB Licences as nonroutine and may exercise its discretion to refuse an application or impose terms and conditions on a licence eligibility approval if appropriate in the circumstances.
- For holders of existing but previously unused licence eligibility approvals, prior to approval of any application (including licence transfer applications), the AER may require evidence that there have been no material changes since approving the licence eligibility. This may include evidence that the holder continues to maintain adequate insurance and that the directors, officers, and/or shareholders are substantially the same as when licence eligibility was originally granted.
- As a condition of transferring existing AER licences, approvals, and permits, the AER will require all transferees to demonstrate that they have a liability management ratio (LMR) of 2.0 or higher immediately following the transfer.
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https://www.aer.ca/rules-and-regulat...lletin-2016-16