• Federal Financial Institutions Legislative and Regulatory Reporter
  • October 27, 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.

    August

    Institution

    Published

    Title and Brief Summary

    Status

    OSFI

    [Banks, Bank Holding Companies, Federally Regulated Trust and Loan Companies, Cooperative Retail Associations]

    Published August 21, 2017

    Changes to Guideline A — Capital Adequacy Requirements (CAR)

    OSFI's revisions to the CAR clarify treatment of allowances in anticipation of the expected adoption of IFRS 9 by deposit-taking institutions in 2018 and clarify a number of items throughout the guideline in response to enquiries received from stakeholders.

    OSFI's intention is to implement these rules in Q1 of 2018.

    Comments should be provided by September 29, 2017

    OSFI

    [Non-bank financial service providers, including both federally regulated trust and loan companies, provincially regulated institutions and unregulated financial service providers]

    Published August 11, 2017

    Advisory 2017-01 — Notice of suspension

    On June 30, 2017, the Office of the Superintendent of Financial Institutions Canada ("OSFI") issued Advisory 2017-01, which sets out how OSFI interprets and administers the Bank Act restrictions on the use of the words "bank", "banker" and "banking".

    On August 11, 2017, the Department of Finance released the second consultation paper as part of its review of the federal financial sector framework. This paper seeks views on the Bank Act restrictions on the use of the words "bank", "banker" and "banking". As a result, OSFI is suspending the compliance expectations set out in its June 30 cover note to the Advisory.

    Effective

    Finance

    Published August 11, 2017

    Potential Policy Measures to Support a Strong and Growing Economy: Positioning Canada's Financial Sector for the Future

    This paper launches the second stage of the renewal of Canada's federal financial institutions statutes. The Department of Finance Canada is consulting on potential policy measures that could lead to consideration of legislation in Parliament prior to the statutory sunset date of March 29, 2019, or inform the Department's longer-term approaches to the financial sector.

    Comments should be provided by September 29, 2017

    IAIS

    [Applicable to insurance companies]

    Published August 1, 2017

    Revision of ICP 24 Macroprudential Surveillance and Insurance Supervision

    As publicly announced in February 2017, as part of the next three-year cycle for reviewing its approach to systemic risk assessment scheduled to conclude in 2019, the IAIS is developing an activities-based approach to systemic risk assessment in the insurance sector and has adopted a systemic risk assessment and policy workplan to put this into effect. As this work will likely have implications for existing and recently consulted upon ICPs, the relevant ICPs will be reviewed once the work on activities-based approach is concluded and revisions made as appropriate.

    Comments should be provided by October 1, 2017