The Office of the Superintendent of Financial Institutions
(Canada) ("OSFI") has updated a number of helpful guides
and transaction instructions to assist federally regulated
financial institutions ("FRFIs") and other applicants to
comply with Canadian federal financial institution statutes and
regulations. The stated objective is to make OSFI's
expectations more transparent.
The current Guide for Incorporating Banks and Federally
Regulated Trust and Loan Companies (the "Bank Guide") and
the current Guide for Incorporating Insurance Companies (the
"Insurance Guide") were last updated in August 2004.
The Bank and Insurance Guides reflect OSFI's expectations
and practices as of December 31, 2012. OSFI notes that as its
expectations and practices continue to evolve, the Guides will be
updated when and as needed.
In the case of the Bank Guide, it does not apply to the
establishment of a foreign bank branch, the incorporation or
continuance of a bank holding company or the reorganization or
continuance of a federal credit union. It should be noted that in
the absence of a guide for credit unions, the Bank Guide will be of
considerable value to credit unions considering incorporation or
continuance under the Bank Act (Canada).
In the case of the Insurance Guide, it does not apply to the
establishment of a foreign insurance branch or the incorporation or
continuance as an insurance holding company, mutual company or
fraternal benefit society.
The Bank and Insurance Guides direct applicants for entities not
expressly covered to contact OSFI for further information regarding
establishment, incorporation or continuance of such entities.
In addition, OSFI has published updated instructions with
respect to the following matters not part of the deemed approved
Establishment of a branch by a foreign insurer (Order to insure
risks in Canada).
All of the above instructions apply, as appropriate, to
transactions under the Bank Act, Trust and Loan Companies Act,
Insurance Companies Act and Cooperative Credit Associations
In summary, the above-noted Guides and Instructions are
essential sources for applicants making applications to OSFI with
respect to the subject matter addressed in such
The updated materials will provide welcomed clarity for existing
FRFIs and those individuals/entities seeking to gain permission to
carry on certain federally regulated financial businesses in
Canada. We stand ready to assist as required.
The Canadian Office of the Superintendent of Financial Institutions ("OSFI") recently ruled that a bank cannot promote comprehensive credit insurance ("CCI") within its Canadian branches under the Insurance Business (Banks and Bank Holdings Companies) Regulations (the "Regulations").
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