Featured Product

    OSFI Consults on the 2019 LICAT Guideline for Insurers

    June 01, 2018

    OSFI is consulting on the 2019 Life Insurance Capital Adequacy Test (LICAT) guideline for federally regulated life insurance companies and fraternal benefit societies. Comments are requested by July 03, 2018 and the guideline will be effective from January 01, 2019.

    LICAT guideline replaced Guideline A on the Minimum Continuing Capital and Surplus Requirements (MCCSR), with effect from January 01, 2018. As was the practice with the MCCSR guideline, OSFI will conduct periodic reviews of the LICAT guideline to monitor for, and respond to, emerging trends and issues raised by stakeholders and to ensure LICAT remains effective and reflective of life insurance industry developments. The proposed changes to the guideline include the following:

    • Implementing changes resulting from the implementation of IFRS 16 on Leases, with effect from January 01, 2019
    • Adding conditions for the recognition of funds' withheld reinsurance, as part of the OSFI initiative related to reinsurance review
    • Specifying that mortality risk components apply to any group life insurance products
    • Harmonizing the treatment between bonds and preferred shares and specifying the treatment for bonds and preferred shares that are both callable and puttable
    • Clarifying the intended meaning of the expression "guarantee coverage period"
    • Clarifying that for calculating the incidence rate shocks, termination rates should not change and are applied to the total termination rate, including terminations due to recovery and death combined
    • Clarifying the definition of unregistered reinsurance

     

    Related Links

    Comment Due Date: July 03, 2018

    Effective Date: January 01, 2019

    Keywords: Americas, Canada, Insurance, Reinsurance, LICAT, MCCSR, IFRS 16, Capital Adequacy, OSFI

    Related Articles
    News

    FASB Proposes Improvements to Derivatives and Hedging Standard

    FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    MAS Collaborates on Research Platform to Support Fintech Investments

    MAS, Deloitte, and S&P Global Market Intelligence have collaborated to develop a prototype for an industry-wide Fintech Research Platform to help investors and financial institutions connect with fintech start-ups that they can partner with or invest in.

    November 12, 2019 WebPage Regulatory News
    News

    MAS and CSA Sign Agreement to Strengthen Collaboration in Fintech

    MAS and eight members of the Canadian Securities Administrators (CSA) signed a cooperation agreement to strengthen collaboration in fintech between Singapore and CSA’s member jurisdictions.

    November 12, 2019 WebPage Regulatory News
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: First Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to two questions. The answers provide clarifications on topics related to own funds and strong customer authentication under the revised Payment Services Directive or PSD2.

    November 08, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Technical Package on Reporting Framework 2.9.1

    EBA published a new release of the reporting framework 2.9.1. This release includes validation rules, Data Point Model (DPM) data dictionary, XBRL taxonomy, and other supporting documents. Additionally, the release fixes some modeling issues on COREP Liquidity and FINREP.

    November 08, 2019 WebPage Regulatory News
    News

    BIS Paper Examines Shadow Banking System in China

    BIS published a working paper that analyzes money creation mechanisms of shadow banking tools in China, investigates their effects on financial risk, and surveys recent regulation.

    November 08, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4131