Featured Product

    OSFI Announces Regulatory Adjustments to Support COVID-19 Efforts

    March 27, 2020

    OSFI published three targeted industry letters that announce a series of regulatory adjustments to support the financial and operational resilience of federally regulated banks, insurers, and private pension plans in the light of COVID-19. This includes adjusting a number of regulatory capital, liquidity, and reporting requirements. These measures, along with the delays in previously planned regulatory changes, are designed to help reduce some of the operational stress on institutions. They are also intended to ensure that the OSFI guidance is appropriate for these extraordinary circumstances while remaining risk-focused and forward-looking.

    Key measures for banks involve

    • Adjusting capital and liquidity measures so that they are suited for unprecedented circumstances
    • Delaying implementation of measures of the Basel III international capital standard until 2023 consistent with the decision of BCBS oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS)
    • Determining under regulatory capital requirements, that bank loans subject to payment deferrals, such as mortgage loans, small business loans and retail loans, will continue to be treated as performing loans 
    • Delaying the implementation of revised minimum capital and liquidity requirements for small and medium-size banks until 2023
    • Providing guidance on applying IFRS 9 during this extraordinary period, including addressing the significant increase in credit risk and sufficient and timely disclosures
    • Lowering the Domestic Stability Buffer by 1.25 percentage points to 1% 

    Key measures for insurers involve

    • Specifying that under regulatory capital requirements, payment deferrals will not cause insured mortgages to be treated as delinquent or in arrears, consistent with expectations for financial institutions
    • Suspending semi-annual progress reporting on the implementation of new accounting standards, notably, IFRS 17
    • Suspending all of its consultations and policy development on new or revised guidance until conditions stabilize

    Key measures for private pension plans include

    • Temporarily freezing portability transfers and annuity purchases to protect the benefits of plan members and beneficiaries
    • Extending deadlines for certain actions and annual filings to allow plans more flexibility to focus on issues at hand


    Related Links

    Keywords: Americas, Canada, Banking, Insurance, Pensions, COVID-19, Operational Resilience, Regulatory Capital, Credit Risk, IFRS 9, IFRS 17, Domestic Stability Buffer, OSFI

    Featured Experts
    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7293