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
Title and Brief
[Applicable to banks, cooperative credit associations, trust and
loan companies and insurance companies]
OSFI is issuing a draft version of Guideline E-22, which requires
the exchange of margin to secure performance on non-centrally
cleared derivatives transactions between covered entities. These
margin requirements will mitigate systemic risk in the financial
sector as well as promote central clearing of derivatives where
practicable. The provisions of this Guideline are consistent with
margin requirements issued by the Basel Committee on Banking
Supervision (BCBS) and apply to federally-regulated financial
institutions (FRFIs) where they meet the definition of a covered
Comments should be
provided no later than November 27, 2015
The amendments are primarily being made to replace the
Assets-to-Capital Multiple (ACM) with the new leverage ratio. In
accordance with the Basel III framework, the Office of the
Superintendent of Financial Institutions (OSFI) amended its Basel
Capital Adequacy Reporting requirements by replacing the ACM with a
new leverage ratio. It is therefore necessary to amend the By-law
so that the CDIC's approach to calculating members'
leverage ratios is consistent with the approach taken by OSFI.
This policy amends and restates the Bank of Canada Policy for
Buying and Selling Securities under subsection 18.1(1) of the
Bank of Canada Act, published in the Canada Gazette, Part
I, on June 27, 2009, and July 26, 2008.
This policy sets out the range of securities and instruments that
the Bank will use for certain types of transactions but it in no
way obligates the Bank to accept the full range of securities and
instruments for any particular transaction. Nor does this policy in
any way restrict the securities and instruments in which the Bank
may transact pursuant to its statutory powers other than those
powers set out in subparagraph 18(g)(i) of the Act, including,
without limitation, subparagraph 18(g)(ii).
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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