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 2014

Institution

Published

Title and Brief Summary

Status

OSFI
[Applicable to banks, bank holding companies, cooperative retail associations, and trust and loan companies]

Issued – Oct 30, 2014

Leverage Requirements Guideline
As announced earlier this year, OSFI is replacing its
Asset-to-Capital Multiple (ACM) with the Basel Committee on Banking Supervision Leverage Requirements, released in January 2014. The guideline sets out OSFI’s expectations for the implementation of these internationally agreed to rules by Canadian financial institutions. It replaces the ACM measure currently contained in OSFI guidance, notably in the Capital Adequacy  Requirements guideline.

 

Effective the first quarter of fiscal 2015

Finance

Introduced (H of C) – Oct 23, 2014​

Bill C-43 Economic Action Plan 2014 Act, No. 2

Division 22 of Part 4 amends several Acts to discontinue supervision of provincial central cooperative credit societies by the Office of the Superintendent of Financial Institutions, to eliminate tools for federal intervention in relation to those centrals and to provincial local cooperative credit societies, and to facilitate the entry of provincial cooperative credit societies into the federal credit union system by simplifying the process for continuation and amalgamation that applies to them.

 

Pre-Study of Commons Bill at the Senate Level –
Oct 30, 2014

Finance

Published (Gazette) – Oct 18, 2014

Draft Regulations By-law Amending the Canada Deposit  Insurance Corporation Data and System Requirements By-​law 

The changes proposed in the Amending By-law are to address data and system requirements as they apply to those branches of a member institution located outside of Canada (foreign branches). 

Draft Regulations By-law Amending the Canada Deposit  Insurance C​orporation Differential Premiums By-law 

A number of the substantive changes are necessary to capture changes in the regulatory environment, such as the introduction of new capital adequacy guidelines and the designation of some member institutions as domestic systemically important banks (DSIBs) to which a new measure — Asset Encumbrance — will be applied. 

A further substantive change is being made to the percentage of the maximum premium rate to be paid for each premium year by member institutions assigned to the various categories.

 

Interested persons may make representations concerning the proposed By-laws within 30 days after the date of publication of these notices.

OSFI
[Applicable to banks, cooperative retail and credit associations, trust and loan companies, and insurance  companies]

Issued – Oct 10, 2014

Draft Advisory – Early Adoption of IFRS 9 Financial Instruments for Federally Regulated Entities with October year-ends

Early adoption by October year-end Federal Regulated Entities (FREs) would closer align their IFRS 9 adoption date with December year-end FREs and other international institutions reporting in IFRS.

 

Comments should be submitted by November 7, 2014

OSFI
[Applicable to banks, cooperative retail and credit associations, trust and loan companies, and insurance companies]

Issued – Oct 1, 20​14

Draft Guideline B-7 Derivatives Sound Practices  (“Guide​line”)​ 

The draft guideline, which includes updates to reflect the over-the-counter (OTC) derivatives market reforms initiated by G-20 leaders, reflects OSFI’s expectations for central clearing of standardized OTC derivatives and reporting derivatives data to a trade repository

.

Comments should be provided no  later than November 14, 2014

 

 

Expertise

Banking and Financial Services
Regulatory