The Reporter provides a monthly summary of federal legislative and regulatory developments of relevance to federally regulated financial institutions. It does not address 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.

October 2013

Institution Published Title and Brief Summary Status

OSFI

[Applicable to banks, cooperative, trust and loan companies, and insurance companies]
Issued –  Oct 28, 2013

Cyber Security Self-Assessment Guidance

OSFI is issuing cyber security self-assessment guidance to assist federally regulated financial institutions in ensuring their cyber risk management policies and practices remain appropriate and effective.

Effective
Finance Published  (Gazette) –  Oct 26, 2013

By-law Amending the Canada Deposit Insurance   Corporation Deposit Insurance Policy By-law

The 2011 Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) provide that jurisdictions should put in place an ongoing process for recovery and resolution planning
covering at a minimum domestically incorporated firms that could be systemically significant or critical if they fail [domestic systemically important banks (D-SIBs)]. The CDIC has been given the task of ensuring that the resolution plans are developed, are in place and are kept up to date.

Proposed Regulations
Finance

Introduced (H of C) – Oct 22, 2013

Bill C-4 – A second act to implement certain  provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

Division 2 of Part 3
amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to remove the prohibition against federal and provincial Crown agents and federal and provincial government employees being directors of a federally regulated financial institution. It also amends the Office of the Superintendent of Financial Institutions Act and the Financial Consumer Agency of Canada Act to remove the obligation of certain persons to give the Minister of Finance notice of their intent to borrow money from a federally regulated financial institution or from a corporation that has deposit insurance under the Canada Deposit Insurance Corporation Act.

Division 3 of Part 3
amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to clarify the rules for certain indirect acquisitions of foreign financial institutions.

Division 13 of Part 3
amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to extend to the whole Act the protection for communications that are subject to solicitor-client privilege and to provide that information disclosed by the Financial Transactions and Reports Analysis Centre of Canada under subsection 65(1) of that Act may be used by a law enforcement agency referred to in that subsection only as evidence of a contravention of Part 1 of that Act.

Second Reading (H of C) –
Oct 29, 2013

Finance Published  (Gazette) –  Oct 19, 2013

By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law     
     
The CDIC annually reviews the By-law to ensure that it remains up to date. As a result of the review, it was noted that technical amendments need to be made to section 4.1 and to Schedule 2, Part 2, Reporting Form (Reporting Form), of  the By-law to reflect changes to regulatory forms and required capital ratios. The changes are reflected in the proposed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law (“Amending By-law”).

Proposed
Regulations

OSFI

[Applicable to banks, cooperative, and trust and loan companies]

Issued –

Oct 15, 2013

Assessment Methodology for Banks, FBB, T&L and Coop 

OSFI has undertaken a review of the Assessment of Financial Institutions Regulations, 2001 to ensure that assessments appropriately reflect the time and resources that OSFI devotes to supervising and regulating individual financial institutions.
OSFI’s Consultation Paper in relation to this review summarizes the current assessment methodologies for these institutions, identifies key considerations in developing a new methodology, outlines the proposed amendments, and summarizes the expected aggregate impact.

Provide comments                         on the proposed
assessment
methodology
by November 29, 2013

 

Expertise

Financial Services Sectors
Insurance — Corporate and Regulatory