The Reporter provides a monthly summary of significant international and Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions in Canada. 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.

January 2015

Institution

Published

Title and Brief Summary

Status

OSFI

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

Issued – Jan 30, 2015

Guideline B-7 Derivatives Sound  Practices (Guideline)
OSFI is issuing the final version of the Guideline, which includes updates to reflect the over-the- counter (OTC) derivatives market reforms initiated by G-20 leaders and communicates OSFI’s expectations for central clearing of standardized OTC derivatives and reporting derivatives data
to a trade repository.

 

 

Effective Nov 1, 2014

Bank of Canada

Issued – Jan 29, 2015

Planned Changes to Assets Eligible as Collateral  under the Bank of Canada’s Standing Liquidity  Facility (SLF)
Following a regular review of the Bank’s policy in relation to Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility (SLF), the Bank is planning to add certain Canadian-dollar denominated term asset-backed securities (ABS), including those backed by residential mortgages, to the list of eligible collateral.

 

 

 

BIS/Basel

Issued
Jan 28, 2015

Revised Pillar 3 disclosure requirements

The revisions to the disclosure requirements address shortcomings in Pillar 3 of the Basel framework. The revised disclosure requirements will enable market participants to better compare banks’ disclosures of risk-weighted assets. The revisions notably focus on improving the transparency of the internal model-based approaches that banks use to calculate minimum regulatory capital requirements.

 

 

BIS indicates that disclosure to be effective from year-end 2016

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

Issued
Jan 9, 2015

Early adoption of IFRS 9 Financial Instruments for  Domestic Systemically Important Banks – Advisory
OSFI is issuing the final version of the Advisory on the Early Adoption of IFRS 9 Financial Instruments for Domestic Systemically Important Banks (D-SIBs). In an effort to consolidate OSFI guidance, this final Advisory incorporates the relevant sections of the March 2010 Advisory Conversion to International Financial Reporting Standards (IFRSs) by Federally Regulated Entities (FREs) and the February 2014 letter entitled Early Adoption of Amendments to IFRS 9 – General Hedging and Own Credit Risk. As a result, these two documents have been removed from the OSFI website.

 

 

D-SIBs expected to adopt IFRS 9 for their annual period beginning on
Nov 1, 2014

OSFI
[Applicable to Insurance companies]

Issued
Jan 5, 2015

Revised Life Insurance Capital Framework –  Standard Approach
This paper describes the principles and, in summary, the concepts supporting the
development of some key components of the potential new life insurance capital framework standard approach. The paper reflects the current stage of development, up to and including QIS6, and should not be viewed as OSFI final positions.

 

 

n/a

CPA

Issued
Jan 5, 2015

Changes to rules and standards

The amendments are to improve the CPA’s ability  to monitor both Severity 1 and Severity 2 incidents encountered by all Participants and improve the CPA’s ability to engage Large Value Transfer System (LVTS) Participants regarding operational events.

  1. LVTS Rule 1 – Interpretations
  1. LVTS Rule 3 – Access to LVTS
  1. LVTS Rule 11 – Change Management, Testing  and Certification
  2. LVTS Rule 12 – Emergency Conditions

Effective Jan 5, 2015

 

 

Author

Jeffrey S. Graham 
JGraham@blg.com
416.367.6174

Expertise

Financial Services Sectors