Featured Product

    OSFI Finalizes Guideline for Foreign Branches of Entities in Canada

    June 28, 2021

    OSFI issued the final version of Guideline E-4 that sets out expectations for foreign entities operating in Canada on a branch basis. This guideline replaces the existing guidelines E-4A titled "Role of the Chief Agent and Record Keeping Requirements" and E-4B titled "Role of the Principal Officer and Record Keeping Requirements." The final guideline reflects new amendments to the location of records requirements in the Insurance Companies Act and the Bank Act, which will come into force in July 2021. There is a six-month transition period for compliance with the guideline. Thus, OSFI expects all foreign entities operating in Canada on a branch basis to be compliant by January 2022.

    In October 2020, OSFI had published draft version of the Guideline E-4 in October 2020. In the annex to a letter to foreign entities operating in Canada on a branch basis, OSFI summarizes the comments received on the draft version of the guideline, along with its response on the comments. During the consultation process, respondents expressed a concern that expectations regarding the location of records do not reflect the current state of technology, nor do they allow flexibility for Branches to modernize their systems. In response to this concern, OSFI noted that the guideline reflects OSFI's legal interpretation of the legislative requirements. Branches under the Bank Act are required to keep copies of the Records at the principal office in Canada of the authorized foreign bank, or at any other place in Canada that the principal officer thinks fit. If the Records are in electronic form, complete copies must be kept on a computer server physically located at the places stipulated in the Bank Act. Certain Branches under the Bank Act are exempted from the requirement to keep copies of the Records at the above noted places in Canada. In those circumstances, the Branch must provide OSFI with immediate, direct, complete, and ongoing access to the Records that are stored outside Canada.

    According to Guideline E-4, a Branch is not a separate legal entity; rather, the Canadian branch is an extension or presence of the foreign entity in Canada. OSFI is not the solvency regulator of the foreign entity as a whole; OSFI supervises the foreign entity's business in Canada, including compliance with the requirements of the Bank Act and the Insurance Companies Act, along with the applicable OSFI guidance. As part of its supervisory framework, OSFI evaluates Branch operations in accordance with the statutory regimes set out in the Banking Act and the Insurance Companies Act and against the expectations set out in this guideline and other applicable OSFI guidance. The amendments incorporated in Guideline E-4 follow the ratification of the Canada-United States-Mexico trade agreement.

     

    Related Links

    Keywords: Americas, Canada, Banking, Insurance, Location of Records, Foreign Banks, Foreign Branches, Banking Supervision, OSFI

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571