Canada:
Federal Financial Institutions Legislative And Regulatory Reporter - June 2015
03 August 2015
Borden Ladner Gervais LLP
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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
covered.
June 2015
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Institution
|
Published
|
Title and Brief Summary
|
Status
|
|
OSFI
[Applicable to banks and
trust and loan companies]
|
Issued June 30, 2015
|
Guide for Incorporating Banks and Federally
Regulated Trust and Loan Companies
This Guide also sets out the various prudential, regulatory and
legislative criteria and information requirements relative to
applications for the incorporation, and commencement of business,
of a FRFI.
This Guide does not apply to:
- the establishment of a foreign bank branch in Canada;
- the incorporation of, or continuance as, a bank holding
company; and
- the incorporation of, or continuance as, a federal credit
union.
|
Effective
|
|
OSFI
[Applicable to banks, cooperative credit associations, trust and
loan companies
and insurance companies]
|
Issued June 30, 2015
|
Related Party Transaction Instructions
The Office of the Superintendent of Financial Institutions
(OSFI) has revised the Transaction Instructions for related-party
asset transactions to ensure they remain current and accurately
reflect how OSFI processes such requests for approvals.
- Related-party asset transactions as part of a restructuring
- Related-party asset transactions with a financial institution
|
Effective
|
|
OSFI
[Applicable to Banks, cooperative credit associations, trust and
loan companies
and insurance companies]
|
Issued June 29, 2015
|
Advisory 2015-01: Substantial Investments
This Advisory provides an overview of how OSFI administers and
interprets the substantial investment regimes set out in the FRFI
statutes as well as related regulations.
|
Effective
|
|
OSFI
[Applicable to Banks]
|
Issued June 29, 2015
|
Advisory 2006-01-R1: Legislative Framework for
Foreign Banks
This Advisory provides an overview of how OSFI administers and
interprets Parts XII and XII.01 of the Bank Act (the Act),
which set out the framework for the branches, activities and
investments in Canada of certain foreign banks and entities
associated with a foreign bank.
|
Effective
|
|
BIS/Basel
[Applicable to Banks]
|
Published June 22, 2015
|
Net Stable Funding Ratio disclosure
standards
Disclosure requirements for the Net Stable
FundingRatio (NSFR) have been developed to
improve the transparency of regulatory funding requirements,
reinforce the Principles for sound liquidity riskmanagement and supervision, strengthen
market discipline, and reduce uncertainty in
the markets as the NSFR standard is implemented.
|
Banks will be required to comply with the disclosure
requirements
from the date of the first reporting period after January 1,
2018
|
|
Finance
[Applicable to Banks,
cooperative credit associations, trust and loan companies
and insurance companies]
|
Published (Gazette) – June 17, 2015
|
Order Fixing the Day on which this Order is made
as the Day on which Certain Sections of the Act Come into Force
Economic Action Plan 2014 Act, No. 2
The amendments to the Canadian Payments Act make changes
to its governance structure and add new accountability framework
obligations.
|
In Force June 4, 2015
|
|
Finance
[Applicable to Banks,
cooperative credit associations, trust and loan companies
and insurance companies]
|
Published (Gazette) – June 17, 2015
|
Canadian Payments Association Reporting
Requirements Regulations Canadian Payments Act
The Regulations aim to support the new accountability framework
for the CPA by providing direction on preparing and submitting the
corporate plan and annual report.
|
In Force June 4, 2015
|
|
Bank of Canada
|
Issued
June 15, 2015
|
Changes to Margin Requirements for the Bank of
Canada's Standing Liquidity Facility (SLF)
As part of the ongoing review of the collateral policy related to
the Bank of Canada's Standing Liquidity Facility (SLF), the
Bank has revised the margin requirements applied to certain
securities accepted as SLF collateral.
|
Effective
June 16, 2015
|
|
Bank of Canada
|
Issued June 12, 2015
|
Proposed Criteria and Risk-Management Standards
for Prominent Payment System - a Consultation Paper
The Bank of Canada has been given responsibility for identifying
and overseeing payments systems that have the potential to pose
payments system risk. To exercise this new responsibility, the Bank
is proposing criteria that will serve as the basis for identifying
such systems. In addition, the Bank is proposing risk-management
standards that would guide operators of these systems in the
mitigation of payments system risk.
|
Comments should be provided by August 14, 2015
|
|
BIS/Basel
[Applicable to Banks]
|
Issued June 8, 2015
|
Interest rate risk in the banking book –
Consultative document
The consultative document on the risk management,
capital treatment and supervision of interest rate risk in the
banking book (IRRBB) expands upon and is intended to ultimately
replace the Basel Committee's 2004 Principles for the management and supervision
of interest rate risk.
|
Comments should be provided no later than September 11, 2015
|
|
Finance
|
Published (Gazette) – June 6, 2015
|
Regulations Amending the Insurable Housing Loan
Regulations
Regulations Amending the Eligible Mortgage Loan
Regulations
The objectives of the proposed Regulations are as follow:
- Prohibit the use of taxpayer-backed insured mortgages as
collateral in securitization vehicles that are not sponsored by
CMHC.
- Restore lender use of government-backed portfolio insurance to
its original purpose, funding through CMHC securitization
programs.
- Provide a transitional period for affected lenders to adjust to
these measures.
|
Interested persons may make
representations concerning
the proposed Regulations within 30 days after the date of
publication of these notices.
|
|
BIS/Basel
[Applicable to Banks]
|
Issued June 2, 2015
|
Developments in credit risk management across
sectors: current practices and recommendations
The report provides insight into the current supervisory framework
around credit risk, the state of credit
risk management at firms and implications for the supervisory and
regulatory treatments of credit risk.
|
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