Quote:
Originally Posted by Barnes
Also, each licensee is rated by there ability to cover their liabilities with their assets.
Most simple, Deemed Assets($)/Deemed liabilities($) = LMR
if LMR is less than 1 then you need to pay security to the AER held in trust in the amount it takes to make your LMR ratio 1.
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It’s actually 2 now. You need 2x assets to liabilities minimum in order to accept transfer of assets. Used to be 1, but Alberta moved it to 2. It’s a huge reason why M&A has slowed so much actually.