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.

November 2013

Institution

Published

Title and Brief Summary

Status

Finance

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

Published (Gazette) — Dec 4, 2013

Prepaid Payment Products Regulations

The Regulations also require that all disclosure be made and presented in a manner that is clear, simple and not misleading. The Regulations also, with some exceptions, prohibit federally regulated financial institutions from imposing a dormancy or maintenance fee for at least one year after activation. Finally, the Regulations prohibit fees and interest charges with respect to overdraft without the express consent of the product holder.

In force May 1, 2014

OSFI

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

Issued — Nov 28, 2013

Liquidity Adequacy Requirements

The guideline establishes the framework within which OSFI will assess whether a bank, a bank holding company, a trust company or a loan company maintains adequate liquidity.

Provide comments on the guideline by Jan 24, 2014

OSFI

[Applicable to all federally regulated entities (FREs)]

Issued — Nov 27, 2013

Early adoption of the May 2013 amendment to IAS 36

The International Accounting Standards Board’s (IASB) issued an amendment to IAS 36 Recoverable Amount Disclosures for Nonfinancial Assets in May 2013. Given the May 2013 amendment to IAS 36 is to correct a disclosure requirement and clarify an unintended interpretation of IASB’s expectations, OSFI has concluded that affected FREs should be allowed to early adopt this amendment so that they do not make disclosures that were not intended by the IASB.

Early adoption permitted for annual periods beginning on or after Jan 1, 2014

CPA

[Applicable to banks]

Issued — Nov 13, 2013

Changes to rules and standards

The Canadian Payments Association (CPA) Board of Directors approved a new rule and multiple amendments to the Automated Clearing Settlement System (ACSS) and Large Value Transfer System (LVTS) rules at its October 3, 2013 meeting.

Effective on various dates

OSFI

[Applicable to insurance companies]

Issued — Nov 11, 2013

Own Risk and Solvency Assessment

OSFI published the final versions of Guideline E-19 Own Risk Solvency and Assessment, and Guideline A-4, which has been renamed Regulatory Capital and Internal Capital Targets.

Effective Jan 1, 2014

OSFI

[Applicable to insurance companies]

Issued — Nov 8, 2013

2014 Draft MCCSR Guideline

OSFI is issuing for comment a draft revised version of its Minimum Continuing Capital and Surplus Requirements (MCCSR) guideline for life insurers, which will come into effect on January 1, 2014.

Comments should be provided no later than November 15, 2013

OSFI

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

Issued — Nov 8, 2013

LEFP Administration Procedures – 2013 Updates

This is the 2013 version of the Administrative Procedures for the Late and Erroneous Filing Penalty (LEFP) Framework.

The LEFP framework is solely designed to encourage federally regulated financial institutions (FRFIs) to file accurate information with OSFI on a timely basis.

Effective

OSFI

[Applicable to insurance companies]

Issued — Nov 8, 2013

Approvals for reinsurance with a related party

Pursuant to sections 523 and 597 of the Insurance Companies Act (ICA), the prior approval of the Superintendent is required where a federally regulated insurer (FRI) intends to cause itself to be reinsured by a related party that is not also an FRI (Related Reinsurer). After January 1, 2014, approvals will generally be granted in respect of each Related Reinsurer as opposed to each reinsurance arrangement with a Related Reinsurer.

Effective Jan 1, 2014

Expertise

Financial Services Sectors
Regulatory
Banking and Financial Services