The Reporter provides a monthly summary of federal legislative
and regulatory developments of relevance to federally regulated
financial institutions. It does not address 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.
Title and Brief Summary
[Applicable to life insurance companies and reinsurers]
OSFI supports the development of international principles and
standards to help promote a level playing field and limit the
arbitrage of regulatory rules between jurisdictions. To this end,
the industry and provincial insurance supervisors are encouraged to
provide comments directly to the Joint Forum on its recently
released draft consultation paper entitled "Longevity Risk
Transfer Markets: Market Structure, Growth Drivers and Impediments,
and Potential Risks".
The Joint Forum is seeking comments by October 15, 2013
[Applicable to banks and trust and loan companies]
OSFI is issuing a letter that clarifies the application of the
Credit Valuation Adjustment (CVA) capital charge in Chapter 4 of
the Capital Adequacy Requirements guideline and the treatment of
market risk hedges used for the purposes of mitigating CVA risk.
These changes will be reflected in the next revision of the CAR
guideline. In the interim, the annex of this letter will reflect
the new CVA methodology.
Title and Brief Summary
[Applicable to banks, retail associations, and trust and loan
OSFI is issuing its second Capital Ruling on the application of
exceptions that may be granted in relation to the calculation of
the assets to capital multiple (ACM) under International Financial
Reporting Standards. The Ruling describes the specifics of a second
situation involving National Housing Act Mortgage Backed Securities
and how OSFI concluded with respect to the treatment under the
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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