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.

April 2015

Institution

Published

Title a​​nd Brief Summary

Status

Finance

Published (Gazette) – April 22, 201​5

SOR/2015-75 Canada Deposit Insurance Corporation Differential Premiums By-law – By-law Amending
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 by member institutions assigned to the various categories. The change ensures that premium rate increases announced by the CDIC in its corporate plan do not breach the maximum premium rate chargeable under the CDIC Act.

 

In Force April 1, 2015

BIS/Basel

Issued April 21, 2015

Basel Committee removes selected national discretions
The Basel Committee has agreed to remove certain national discretions from the Basel capital framework. National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems. However, the use of national discretions can also impair comparability across jurisdictions and increase variability in
risk-weighted assets.

In addition, the Committee notes that the national discretion related to the internal ratings-based (IRB) approach treatment of equity exposures (paragraph 267) will expire in 2016, as the discretion was to apply for a maximum of 10 years from the publication of the Basel II framework.

 

Effective

CPA

Issued April 20, 2015

Changes to rules and standards

The CPA Board of Directors approved multiple amendments to the Automated Clearing Settlement System (ACSS) rules at its February 18, 2015 meeting:

  1. Rule A10 – Image Rule

Amendments to elaborate on exchange time and settlement process for Image Captured Payment (ICP) Files that are exchanged on a national basis.

  1. Rule G4 – Canada Revenue Agency Acceptance of Payments Goods and Services Tax/Harmonized Sales Tax (GST/HST), Excise, Taxation and Custom Programs

Amendments to update the process for submitting Deposit Advice Forms for Government of Canada remittances.

Standard 006 – Specifications for MICR-Encoded Payment ItemsAmendments to adjust mandatory wording for serial numbers.

 

Effective

Finance

Published April 13, 2015

Code of Conduct for the Credit and Debit Card Industry in Canada

Following consultations with stakeholders, these new changes will make the Code even stronger by addressing unfair business practices and improving transparency for merchants and consumers, including new provisions that apply specifically to mobile payments.

 

Effective​

Author

Jeffrey S. Graham 
JGraham@blg.com
416.367.6174

Expertise

Financial Services Sectors
Banking and Financial Services