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 2014

Institution Published Title and Brief Summary Status


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

Issued – April 30, 2014

Draft revised Guideline E-13 (re-named Regulatory Compliance Management)

The draft Guideline is intended to revise and replace the 2003 Guideline E-13 – Legislative Compliance Management (LCM) to better align it with recently updated OSFI Guidelines and to complement OSFI’s Supervisory Framework and Assessment Criteria.


To provide comments by June 20, 2014


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

Issued – April 25, 2014

Capital Adequacy Requirements Guideline

Amended version that incorporates a number of clarifications to facilitate interpretation of guidance in a number of chapters and to revise incorrect cross-paragraph references included in the previous version.



[Applicable to insurance companies]

Issued – April 14, 2014

Draft Guideline B-21, Residential Mortgage Insurance Underwriting Practices and Procedures

The Draft Guideline sets out OSFI’s expectations with respect to prudent residential mortgage insurance underwriting and related activities.

Review Pending

March 2014

Institution Published Title and Brief Summary Status


[Applicable to banks]

Issued – March 31, 2014

Advisory – Global systemically important banks – Public disclosure requirements

This Advisory clarifies the implementation in Canada of the annual public disclosure requirements outlined in the G-SIB framework.



Introduced (H of C) – March 28, 2014

Bill C-31 An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures.

Division 2 of Part 6 amends the Bank of Canada Act and the Canada Deposit Insurance Corporation Act to authorize the Bank of Canada to provide banking and custodial services to the Canada Deposit Insurance Corporation.

Division 13 of Part 6 amends the Bank Act to add regulation-making powers respecting a bank’s activities in relation to derivatives and benchmarks.

Division 14 of Part 6 amends the Insurance Companies Act to broaden the Governor in Council’s authority to make regulations respecting the conversion of a mutual company into a company with common shares.

Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, enhance the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses.

Division 24 of Part 6 amends the Protection of Residential Mortgage or Hypothecary Insurance Act and the National Housing Act to provide that certain criteria established in a regulation may apply to an existing insured mortgage or hypothecary loan.

Second Reading and Referral to Committee – April 8, 2014


Published (Gazette) – March 26, 2014

SOR/2014-29 By-law Amending Canada Deposit Insurance Corporation Deposit Insurance Policy By-law.

The Amending By-law requires member institutions to provide CDIC with information and analysis, both on an annual basis and on a request basis, to facilitate resolution planning by CDIC.

In force March 6, 2014

Bank of Canada

Issued – March 13, 2014

Market Notice – Changes to Conditions for Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility (SLF)

All eligible securities issued by a municipal government or a private sector issuer (including corporate bonds, covered bonds, bankers’ acceptances, commercial paper, and ABCP) will be subject to a new sectoral concentration limit. No more than 20 per cent of the total collateral value pledged by an institution may be comprised of such municipal and private sector securities.

6 month transition period ending on September 30, 2014


[Applicable to insurance companies]

Issued – March 10, 2014

2014 Memorandum – Earthquake Exposure Data OSFI is issuing a letter reminding companies that have earthquake exposure in British Columbia and Québec that they are required to submit one copy of the Earthquake Exposure Data form to OSFI by April 15, 2014.

OSFI is also issuing the Earthquake Exposure Data form that will be applicable for the year beginning January 1, 2015 in order to give affected companies sufficient time to prepare for the transition. This form should not be used for the April 15, 2014 filing.



Jeffrey S. Graham

Alexandra M. Nicol

Stephen J. Redican

Sean Muggah

Other Author

Jill E. McCutcheon


Financial Services Sectors
Insurance — Corporate and Regulatory