AMF published the updated guidelines on solvency requirements, along with the updated guidelines on sound and prudent management practices and sound commercial practices. Additionally AMF released the new guideline on Total Loss Absorbing Capacity (TLAC) requirements for financial services cooperatives. The guidelines became effective from March 31, 2019.
Under solvency requirements, AMF updated capital adequacy guideline for financial services cooperatives and credit unions that are not members of a federation, trust companies, and savings companies. The updated guidelines on sound and prudent management practices and sound commercial practices include the following:
- Investment Management Guideline, which is intended for insurers of persons (life and health), damage (P&C) insurers, holding companies controlled by an insurer, any federation of mutual insurance associations with respect to its investment fund, financial services cooperatives, trust companies and savings companies governed by certain specific statutes.
- Securitization Risk Management Guideline, which is intended for insurers of persons (life and health), damage (P&C) insurers, financial services cooperatives, holding companies controlled by an insurer, trust companies and savings companies governed by certain specific statutes
- Liquidity Risk Management Guideline, which is intended for insurers of persons (life and health), damage (P&C) insurers, portfolio management companies controlled by an insurer, financial services cooperatives, trust companies and savings companies governed by certain specific statutes
AMF sets guidelines for various financial institution categories. These guidelines help set standards governing the activities and conduct of these institutions, particularly with regard to solvency (capital adequacy) and sound and prudent management practices.
Effective Date: March 31, 2019
Keywords: Americas, Canada, Quebec, Banking, Insurance, Solvency Requirements, TLAC, Liquidity Risk, Investment Management, Securitization, Capital Adequacy, AMF
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.