• Federal Financial Institutions Legislative and Regulatory Reporter
  • May 18, 2017 | Author: Jeffrey S. Graham
  • Law Firm: Borden Ladner Gervais LLP - Toronto Office
  • The Reporter provides a monthly summary of Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions. It does not address Canadian provincial financial services legislative and regulatory developments, although this information is tracked by BLG and can be provided on request. In addition, purely technical and administrative changes (such as changes to reporting forms) are not covered.

    March 2017



    Title and Brief Summary


    Bank for International Settlements

    March 30, 2017

    Global systemically important banks — revised assessment framework — consultative document

    The Committee has completed its review and is consulting on the following modifications to the framework:

    • Removal of the cap on the substitutability category;
    • Expansion of the scope of consolidation to include insurance subsidiaries;
    • Amendments to the definition of cross-jurisdictional activity;
    • Modification of the weights in the substitutability category and introduction of a trading volume indicator;
    • Revisions to the disclosure requirements;
    • Further guidance on bucket migration and the associated surcharge; and
    • A proposed transition schedule.

    Comments should be provided by June 30, 2017

    Bank for International Settlements

    March 29, 2017

    Regulatory treatment of accounting provisions-interim approach and transitional arrangements

    The Basel Committee on Banking Supervision released details of the interim regulatory treatment of accounting provisions and standards for transitional arrangements.

    Final version

    Bank for International Settlements

    March 29, 2017

    Pillar 3 disclosure requirements — consolidated and enhanced framework

    The Pillar 3 disclosure framework seeks to promote market discipline through regulatory disclosure requirements. The enhancements in the standard contain three main elements:

    • Consolidation of all existing Basel Committee disclosure requirements into the Pillar 3 framework.
    • Introduction of a "dashboard" of banks' key prudential metrics
    • Updates to reflect ongoing reforms to the regulatory framework.

    Final version


    March 23, 2017

    Guidance on Amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)

    This guidance provides information about changes related to:

    • signature
    • signature card
    • definitions
    • elements that must be considered in your risk assessment:
    • records you must keep of "reasonable measures" that you have taken (in force June 2017)



    [Applicable to Life Insurance Companies]

    March 20, 2017

    Deferral of IFRS 9 Application for Federally Regulated Life Insurers

    This allows life insurers to adopt both IFRS 9 and the new IFRS 4 — Insurance Contracts Standard simultaneously.

    Until January 1st, 2021

    Bank for International Settlements

    March 15, 2017

    Identification and management of step-in risk — second consultative document

    The proposed guidelines define the step-in risk that is potentially embedded in banks' relationships with unconsolidated entities. The framework leverages existing prudential tools by informing or supplementing them.  

    Comments should be provided by May 15, 2017

    Financial Stability Board (FSB)


    March 13, 2017

    Proposed governance arrangements for the unique transaction identifier (UTI)

    The consultation document identifies key criteria for the UTI governance arrangements and the rationale for a number of those criteria; identifies UTI governance functions to be performed, including a mapping of those functions into three broad areas of governance; proposes the allocation of some functions to specific bodies; and identifies options for the allocation of some other functions.

    Comments should be provided by May 5, 2017


    Published (Gazette) — March 8, 2017

    By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law, SOR/2017-22

    • Target Tier 1 capital ratio to be reported by CDIC member institutions
    • Updates to the Three-Year Moving Average Asset Growth Ratio



    [Applicable to Banks, Bank Holding Companies, Trust and Loan Companies, Co-operative Retail Association]

    March 6, 2017

    OSFI's Implementation timeline for the Net Stable Funding Ratio (NSFR)

    The Committee's proposed NSFR standard requires banks to maintain a stable funding profile relative to the composition of their assets and off-balance sheet activities.

    To extend the domestic implementation timeline of the NSFR to January 2019



    This Reporter is prepared as a service for our clients. It is not intended to be a complete statement of the law or an opinion on any subject. Although we endeavour to ensure its accuracy, no one should act upon it without a thorough examination of the law after the facts of a specific situation are considered.