Canada: Federal Financial Institutions Legislative And Regulatory Reporter - February 2013

Last Updated: February 14 2013
Article by Jeffrey S. Graham

Most Read Contributor in Canada, September 2016

The Reporter is intended to present a current overview of recent federal legislative and regulatory developments affecting federally governed deposit-taking institutions and insurance companies. It does not include provincial legislative and regulatory developments.

It is noted that solely amendments of legal nature are reported. Purely technical and administrative changes (such as changes to reporting forms) are not covered.




Title and Brief Summary



[Applicable to banks, cooperatives, trust and loan companies, and insurance companies]

Announced – (News Release) Jan 28, 2013

Corporate Governance Guideline

The Guideline, which is an update to the 2003 Corporate Governance Guideline, complements relevant provisions in federal financial institutions legislation and associated regulations, and OSFI's Supervisory Framework and Assessment Criteria.

Full implementation is expected by no later than January 31, 2014.


[Applicable to banks and trust and loan companies]

Issued – Jan 24, 2013

G-20 Commitments for OTC Derivative Market Reform

OSFI is issuing a letter to advise federally-regulated deposit-taking institutions of OSFI's progress and contributions in implementing G-20 reforms for the over-the-counter (OTC) derivatives markets and to outline on-going and future initiatives.



[Applicable to banks, cooperatives, trust and loan companies, and insurance companies]

Issued – Jan 9, 2013

Business and Powers – Ownership Interests in Commodities

OSFI is issuing Advisory No. 2013-01 which sets out its views on: (i) the circumstances in which taking an ownership interest in commodities generally appertains to the business of providing financial services; and (ii) the minimum prudential standards that FRFIs that engage in activities of that nature are expected to adhere to.





Title and Brief Summary



[Applicable to insurance companies

Announced – December 21, 2012

Own Risk and Solvency Assessment (ORSA)

OSFI is issuing for public consultation, two draft guidelines for federally regulated life and property and casualty insurers, effective January 1, 2014.

Guideline E-19: Own Risk and Solvency Assessment (ORSA) is a proposed new draft guideline.

Guideline A-4: Regulatory and Internal Target Capital Ratios is a proposed revised draft guideline of OSFI's current Guideline A-4: Internal Target Capital Ratio for Insurance Companies.

Comments due April 12, 2013


Published (Gazette) – December 19, 2012

Regulations pursuant to the Protection of Residential Mortgage or Hypothecary Insurance Act, S.C. 2011, c. 15, s.20

Eligible Mortgage Loan Regulations Protection of Residential Mortgage or Hypothecary Insurance Act

Insurable Housing Loan Regulations National Housing Act

The regulations are required in order to fully implement this legislative framework, and are in addition to three Governor in Council regulations published in Part II of the Canada Gazette on November 21, 2012.

In Force Jan. 1, 2013


Published (Gazette) – December 19, 2012

Order Fixing the Day on which this Order is registered as the Day on which Certain Sections of the Act Come into Force Jobs and Economic Growth Act Financial System Review Act

Along with accompanying regulations, the legislative provisions provide the legal and regulatory framework to allow a provincial credit union to continue to a federal charter.

In Force Dec. 19, 2012


Published (Gazette) – December 19, 2012

To implement the federal credit union legislative framework, a set of six regulations have been made:

Canadian Payments Association Election of Directors Regulations – Regulations Amending Canadian Payments Act

Certain By-laws Made Under the Canadian Payments Act – By-law Amending Canadian Payments Act

Certain Regulations Made Under the Bank Act – Regulations Amending Bank Act

Disclosure on Continuance Regulations (Federal Credit Unions) Bank Act

Federal Credit Union Conversion Regulations Bank Act

Prospectus (Federal Credit Unions) Regulations Bank Act

In Force Dec. 19, 2012


Announced – December 17, 2012

Canadian Registered Covered Bond Programs Guide

The National Housing Act establishes a legal framework for the registration of covered bond programs in Canada. Under the Act, Canada Mortgage and Housing Corporation (CMHC) is responsible for maintaining a Registry of covered bonds issuers and programs.



Royal Assent December 14, 2012

Bill C- 45, Jobs and Growth Act, 2012 (S.C. 2012, c. 31)

Introduce a number of amendments to statutes affecting financial institutions:

Trust And Loan Companies Act
Bank Act
Insurance Companies Act
Canada Deposit Insurance Corporation Act
Payment Clearing and Settlement Act

In Force Dec. 14, 2013


[Applicable to insurance companies]

Announced – December 13, 2012

2013 MCCSR Guideline

OSFI is issuing the final revised version of its Minimum Continuing Capital and Surplus Requirements (MCCSR) guideline for life insurers, which will come into effect on January 1, 2013.

Effective 2013


[Applicable to banks, cooperatives, and trust and loan companies]

Announced – December 10, 2012

Capital Adequacy Requirements

OSFI is issuing the final revised version of the Capital Adequacy Requirements Guideline that will be effective for the first quarter of fiscal 2013

Effective 2013

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