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.
July 2015
| Institution | Published | Title and Brief Summary | Status |
| OSFI [Applicable to banks and trust and loan companies] |
Issued July 30, 2015 | Proposed Revisions for 2016 Guideline A, Minimum
Continuing Capital and Surplus Requirements (MCCSR) The revised guideline, which will be effective January 1, 2016, is proposing the following key changes:
|
Comments should be
provided no later than September 4, 2015 Expected effective date: January 1, 2016 |
| BIS/Basel [Applicable to Banks] |
Published July 23, 2015 | Criteria for identifying simple, transparent and
comparable securitisations The purpose of these criteria is to assist in the financial industry's development of simple, transparent and comparable securitisation structures. They are not intended to serve as a substitute for investors' due diligence. These criteria apply only to term securitisations and are non-exhaustive and non- binding. Additional and/or more detailed criteria may be necessary based on specific needs and applications. |
Effective |
| OSFI [Applicable to insurance companies] |
Issued July 22, 2015 | Draft 2016 Minimum Capital Test (MCT) Guideline for
Industry Consultation The draft Guideline includes proposed amendments to the regulatory capital requirements for federally regulated property and casualty (P&C) insurers. The most significant change is the addition of further provisions for equity risk exposures. The provisions include capital requirements for equity derivatives and equity instruments held short, and the recognition of equity hedging strategies employed by P&C insurers. |
Comments should be
provided no later that September 4, 2015 Expected effective date: January 1, 2016 |
| BIS/Basel [Applicable to Banks] |
Published July 16, 2015 | General guide to account opening - consultative
document When finalised, the proposed revised version of the General guide to account opening will be added as an annex to the Committee's Sound management of risks related to money laundering and financing of terrorism , published in January 2014. The proposed guide expands on, and should be read in conjunction with, the 2014 guidelines. The proposed guide is in no way intended to strengthen, weaken or otherwise modify the existing Financial Action Task Force (FATF) standards. Rather, it aims to support banks in implementing the FATF standards and guidance, which requires the adoption of specific policies and procedures, in particular on account opening. |
Comments should be provided no later than October 22, 2015 |
| BIS/Basel [Applicable to Banks] |
Published July 16, 2015 | Guidelines for identifying and dealing with weak
banks In the light of the significant post-crisis developments in financial markets and the regulatory landscape, the Committee has updated its 2002 Supervisory guidance on dealing with weak banks. Part I of the report discusses the underlying supervisory preconditions for dealing with weak banks and techniques that will allow the supervisor to identify problems. These phases include preparatory work on recovery and resolution issues. Part II concerns the corrective measures available to turn around a weak bank and, for resolution authorities, tools for dealing with failing or failed banks. |
Effective |
| BIS/Basel [Applicable to Banks] |
Published July 8, 2015 | Corporate governance principles for banks This document provides a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision-making and, in doing so, promote public confidence and uphold the safety and soundness of the banking system. |
Effective |
| Finance [Applicable to banks, cooperative credit associations, trust and loan companies and insurance companies] |
Published (Gazette) – July 4, 2015 | Proposed Regulations -
Regulations Amending Certain Regulations Made
under the Proceeds of Crime(Money Laundering) and Terrorist
Financing Act, 2015 The following suite of regulatory amendments is proposed as part of the Government of Canada's efforts to strengthen Canada's anti-money laundering and anti-terrorist financing regime. |
Interested persons may make representations within 60 days after the date of publication |
| Finance [Applicable to insurance companies] |
Published (Gazette) – July 1, 2015 | Mutual Property and Casualty Insurance Company
Having Only Mutual Policyholders Conversion Regulations Mutual Property and Casualty Insurance Company with Non-mutual Policyholders Conversion Regulations The Regulations provide federally regulated mutual P&C companies with the option to demutualize within a framework that ensures fair and equitable treatment of policyholders; and establishes an orderly and transparent process for demutualizing. |
In force July 1, 2015 |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
