On 13 December 2018, a private members Bill entitled “Modern Slavery Act” was tabled in the Canadian House of Commons. The Bill, if passed, would require certain corporations linked to Canada to report on the measures they take to prevent and reduce the risk of forced or child labour in their businesses and supply chains.
The Financial regulations: Services tomorrow Team
FINTRAC amplifies requirements for Suspicious Transaction Reporting
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has recently updated its industry guidance (Revised Guidance) in relation to the filing of suspicious transaction reports (STRs). The Revised Guidance reflects FINTRAC’s increased expectations as to certain key requirements for filing STRs. Reporting entities, including financial entities, are…
OSFI issues final guideline on asset securitization
The Office of the Superintendent of Financial Institutions (OSFI) has issued a final version of Guideline B-5: Asset Securitization (the Guideline), which sets out OSFI’s general expectations for asset securitization transactions undertaken by federally regulated insurance companies. The existing guideline on asset securitization was first published in November 2004, and does not…
OSFI issues final versions of the capital adequacy requirements and the leverage requirements guidelines
The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Capital Adequacy Requirements (CAR) guideline and Leverage Requirements (LR) guideline. OSFI updates its CAR guideline periodically to ensure capital requirements reflect the underlying risks and developments in the financial industry. The LR guideline…
The USMCA – Impact on the financial services sector
On September 30, 2018, Canada and the United States announced they had reached a resolution on certain trade issues and agreed on the text of a new trilateral trade agreement with Mexico to be called the United States-Mexico-Canada Agreement (USMCA). Once ratified, the USMCA will replace the longstanding trilateral North American Free Trade…
OSFI issues final corporate governance guidelines
The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Corporate Governance Guideline (CGG). The CGG sets out OSFI’s expectations for boards of directors of federally regulated financial institutions (FRFIs).
The CGG applies to all FRFIs other than the Canadian branch operations of…
CSA confirms position on bail-in implications
The Canadian Securities Administrators (CSA) recently released two notices on the implementation and regulation of the Canadian bail-in regime, namely:
- CSA Staff Notice 46-309, in connection with the regulation of Bail-in Debt (as defined below); and
- CSA Staff Notice 81-331, in connection with the implications of the bail-in regime on investment
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OSFI proposes changes to the leverage requirements guideline
The Office of the Superintendent of Financial Institutions (OSFI) has released proposed revisions to the Leverage Requirements (LR) guideline in order to align with upcoming modifications to Chapter 4 (Settlement and Counterparty Risk) and Chapter 7 (Securitization) of the Capital Adequacy Requirements (CAR) guideline.
The LR set out the…
Implementation of the final Basel III reforms in Canada – request for comments
The Office of the Superintendent of Financial Institutions (OSFI) has released a discussion paper on the proposed implementation of the final Basel III reforms in Canada.
The reforms were published in December 2017 and, in summary, seek to:
…
OSFI confirms higher capital for Domestic Systemically Important Banks
The Office of the Superintendent of Financial Institutions (OSFI) has provided greater transparency to the market surrounding the Domestic Stability Buffer (the DSB) currently held by Domestic Systemically Important Banks (D-SIBs) in a bid to guard against Pillar 2 risks associated with systemic vulnerabilities. OSFI revealed last week that D-SIBs…