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.
September 2014
| Institution | Published | Title and Brief Summary | Status |
| OSFI [Applicable to insurance companies] |
Issued – Sept 24, 2014 | Interim Capital Requirements for Mortgage Insurance
Companies The advisory describes the regulatory capital framework federally regulated mortgage insurance companies will use on an interim basis beginning in 2015. The interim capital framework is a modified version of the Minimum Capital Test (MCT) for property and casualty insurers that will be in effect until a new capital framework for mortgage insurers is in place. |
Effective January 1, 2015 |
| OSFI [Applicable to insurance companies] |
Issued – Sept 24, 2014 | Minimum Capital Test for Federally Regulated
Property and Casualty Insurance Companies This is the final version of the revised Minimum Capital Test, which follows a thorough review of P&C risks and an extensive consultation process. The guideline provides for a more robust risk-based test that further aligns capital requirements to the level of risk faced by the P&C industry. |
Effective January 1, 2015 |
| OSFI [Applicable to banks, bank holding companies, cooperative retail associations, and trust and loan companies] |
Issued – Sept 22, 2014 | D-12 Public Disclosure Requirements related to
Basel III Leverage Ratio The final version of the guideline provides clarification on the implementation of the Basel Committee on Banking Supervision's leverage ratio disclosure requirements. |
Effective January 1, 2015 |
| OSFI [Applicable to DTIs using the Basel Standardized Approach to Credit Risk] |
Issued – Sept 19, 2014 | Internal capital adequacy assessment process
(ICAAP) The purpose of this communication is to highlight the key changes in ICAAP expectations for 2014, including the establishment of a Leverage Ratio target to replace the Assets to Capital Multiple target. |
Effective |
| OSFI [Applicable to banks] |
Issued – Sept 12, 2014 | Final Guideline E-20 - CDOR Benchmark-Setting
Submissions The final version sets out its expectations regarding the effectiveness of governance and risk controls surrounding banks' submission processes in regard to CDOR. |
Full implementation is expected no later than December 31, 2014. |
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.
