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.

October 2015

Institution

Published

Title and Brief Summary

Status

OSFI

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

Issued October 19, 2015

Guideline E-22 Margin Requirements for Non-Centrally Cleared Derivatives

OSFI is issuing a draft version of Guideline E-22, which requires the exchange of margin to secure performance on non-centrally cleared derivatives transactions between covered entities. These margin requirements will mitigate systemic risk in the financial sector as well as promote central clearing of derivatives where practicable. The provisions of this Guideline are consistent with margin requirements issued by the Basel Committee on Banking Supervision (BCBS) and apply to federally-regulated financial institutions (FRFIs) where they meet the definition of a covered entity.

Comments should be provided no later than November 27, 2015

Finance

Published (Gazette) — October 17, 2015

Proposed Regulation – By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law

The amendments are primarily being made to replace the Assets-to-Capital Multiple (ACM) with the new leverage ratio. In accordance with the Basel III framework, the Office of the Superintendent of Financial Institutions (OSFI) amended its Basel Capital Adequacy Reporting requirements by replacing the ACM with a new leverage ratio. It is therefore necessary to amend the By-law so that the CDIC's approach to calculating members' leverage ratios is consistent with the approach taken by OSFI.

Effective

Finance

Published (Gazette) — October 3, 2015

Amendment to policy for buying and selling securities

This policy amends and restates the Bank of Canada Policy for Buying and Selling Securities under subsection 18.1(1) of the Bank of Canada Act, published in the Canada Gazette, Part I, on June 27, 2009, and July 26, 2008.

This policy sets out the range of securities and instruments that the Bank will use for certain types of transactions but it in no way obligates the Bank to accept the full range of securities and instruments for any particular transaction. Nor does this policy in any way restrict the securities and instruments in which the Bank may transact pursuant to its statutory powers other than those powers set out in subparagraph 18(g)(i) of the Act, including, without limitation, subparagraph 18(g)(ii).

Effective

Author

Jeffrey S. Graham 
JGraham@blg.com
416.367.6174

Expertise

Financial Services Sectors
Banking and Financial Services
Regulatory