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 2014


Institution

Published

Title and Brief Summary

Sta​tus

OSFI

[Applic​able to insurance companies]

Issued –  August 7, 2014

MCCSR Guideline Revisions for 2015.

OSFI is proposing changes to Guideline A, Minimum Continuing Capital and Surplus Requirements (MCCSR) which come into effect on January 1, 2015.

The Guideline establishes standards, using a risk-based approach, for measuring specific insurer risks and for aggregating these results to calculate the amount of an insurer’s regulatory capital needed to support these risks.


The Guideline also defines and establishes criteria for determining the amount of qualifying regulatory available capital.

Comments should be submitted by September 5, 2014

Finance

Announced – August 1, 2014

Government Launches Public Consultation
on a Taxpayer Protection and Bank Recapitalization Regime.

The proposed regime is aimed at ensuring that taxpayers are protected from having to bail out a systemically important bank and by clarifying that banks’ shareholders and creditors are responsible for bearing losses.

The Government proposes that the cornerstone of the Taxpayer Protection and Bank Recapitalization regime be a statutory power allowing for the permanent conversion–in whole or in part–of specified eligible liabilities into common shares of a bank designated as a D-SIB by OSFI. The power would also allow for (but not require) the permanent cancellation, in whole or in part, of pre-existing shares of the bank.

 

The closing date for comments is September 12, 2014

 

Expertise

Banking and Financial Services
Regulatory