September 14, 2018

OSFI proposed amendments to the guideline (Guideline B-5) specifying the regulatory framework for asset securitization transactions of insurers. The amendments reflect events that have affected securitizations since 2004, including the financial crisis and changes to the Basel framework. The guideline also incorporates relevant content from the OSFI Advisory, which was issued in November 2008, on expected practices in asset securitization. OSFI plans to repeal the Advisory when the revised guideline becomes effective, the planned date for which is January 01, 2019.

The guideline sets out the general expectations of OSFI with respect to asset securitization transactions. The guideline supplements the Life Insurance Capital Adequacy Test (LICAT), the Minimum Capital Test (MCT), and the Mortgage Insurer Capital Adequacy Test (MICAT). It specifies the capital treatment for securitization exposures, in addition to those arising from investing in securitizations as a third party. Insurers should apply the capital treatment in this guideline to traditional securitizations, synthetic securitizations, and other securitization structures that contain features common to both. The guideline applies to all insurers on an enterprise-wide basis. The term insurers refers to all federally regulated insurers, including Canadian branches of foreign life and property and casualty companies, fraternal benefit societies, regulated insurance holding and non-operating insurance companies, and mortgage insurers.

 

Related Links

Comment Due Date: October 12, 2018

Effective Date: January 01, 2019

Keywords: Americas, Canada, Insurance, Securities, Securitization, Guideline B-5, OSFI

Related Articles
News

HKMA Revises Implementation Schedule for Initial Margin Rules

HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

August 16, 2019 WebPage Regulatory News
News

FASB Proposes to Extend CECL Standard Deadline for Certain Entities

FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

August 15, 2019 WebPage Regulatory News
News

IASB Adds Phase Two of IBOR Reform to Its Work Plan

IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

August 15, 2019 WebPage Regulatory News
News

FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

August 15, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirement for an Australian Insurer

APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

August 14, 2019 WebPage Regulatory News
News

APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

August 14, 2019 WebPage Regulatory News
News

BCBS FAQs on Implementation of Operational Risk Capital Requirements

BCBS published the first set of frequently asked questions (FAQs) to facilitate consistent global implementation of the standardized approach for operational risk capital.

August 14, 2019 WebPage Regulatory News
News

MAS Publishes Rules on Single Counterparty Credit Limits for Banks

MAS published Notice 656 on rules to measure and limit exposures to a single counterparty group for banks incorporated in Singapore.

August 14, 2019 WebPage Regulatory News
News

BoE Publishes Actual and Indicative MREL for Banks in UK

BoE published actual and indicative minimum requirements for own funds and eligible liabilities (MRELs) for UK banks and buildings societies that have bail-in or partial transfer resolution strategies.

August 14, 2019 WebPage Regulatory News
News

OSFI Sets Out Plans for Implementation of Insurance Contracts Standard

OSFI published a letter that provides an update on the milestones completed and the activities underway with respect to the implementation of the insurance contracts standard International Financial Reporting Standard (IFRS) 17.

August 13, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3638