OSFI Consults on Regulatory Forms and Instructions for IFRS 17
OSFI is seeking views on the draft manual of regulatory forms and instructions for IFRS 17. OSFI published a letter which advises federally regulated insurers of the proposed changes made to the Canadian Council of Insurance Regulators (CCIR) manual of regulatory forms and instructions. The proposed changes ensure that federally regulated insurers will continue to report their financial statements to OSFI in accordance with the Generally Accepted Accounting Principles (GAAP). The public consultation will run till March 21, 2020.
The consultation encompasses the following regulatory forms and instructions:
- Life/Property and Casualty (P&C)/Mortgage Insurers Core Financial Statement Return
- Life/P&C/Mortgage Insurers Supervisory Quarterly Statement Return
- Life/P&C/Mortgage Insurers Supervisory Annual Supplement Return
- Life/P&C/Mortgage Insurers Provincial Statement Return
- The corresponding instructions and validation rules template for each regulatory form
The legislation governing the federally regulated insurers stipulates that "financial statements shall, except as otherwise specified by OSFI, be prepared in accordance with GAAP, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada." GAAP for the federally regulated insurers is effectively the International Financial Reporting Standard (IFRS) as issued by IASB. Through its authority, OSFI may specify additional accounting guidance or disclosures.
In May 2017, IASB had issued IFRS 17 on insurance contracts, which replaces IFRS 4, the current insurance accounting standard. IFRS 17 is effective for annual periods beginning on or after January 01, 2021. This means that the federally regulated insurers will be required to publish financial statements and reporting regulatory returns complying with IFRS 17 for their first quarter in the fiscal year beginning on, or after, January 01, 2021. In June 2019, IASB released an exposure draft proposing amendments to IFRS 17, with one of the amendments being a deferral of the effective date of IFRS 17 by one year to January 01, 2022. IASB intends to finalize the IFRS 17 amendments by mid-2020. OSFI expects federally regulated insurers to continue efforts toward implementation in 2021 and to use the extra year (if extended) for testing and quality assurance purposes.
Related Links
- OSFI Letter
- Life Insurance Return for Consultation
- P&C Insurance Return for Consultation
- Mortgage Insurance Return for Consultation
Comment Due Date: March 21, 2020
Keywords: Americas, Canada, Insurance, IFRS 17, Insurance Contracts, Reporting, Forms and Instructions, GAAP, IFRS 4, IASB, OSFI
Featured Experts
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Previous Article
IMF Publishes Technical Notes Under FSAP Assessment on MaltaRelated Articles
EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB Begins First Phase of Post-Implementation Review of IFRS 9
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB Report Examines Progress in Resolvability of Systemic Institutions
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA Benchmarks National Insolvency Frameworks Across EU
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB Reports Assess Impact of Pandemic on Financial Stability
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ Consults on Implementation of Capital Review Changes
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
IASB Announces Andreas Barckow as the New Chair from July 2021
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA Consults on Capital Rules for Bank Equity Investments in Funds
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).
