OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts. The update reflects the impact of COVID-19 on the IFRS 17 Project, including the IASB deferral of the IFRS 17 effective date to January 01, 2023. In a statement from the Superintendent on July 13, 2020, OSFI had announced that it would gradually restart policy development work, which was put on hold due to COVID-19 pandemic, in the Fall of 2020; this includes policy development work on the IFRS 17 Project. In this regard, the deadline for consultation on IFRS 17 Insurance Returns period has been extended to August 31, 2020. Furthermore, the IFRS 17 semi-annual progress reporting submission requirement will resume beginning September 30, 2020. Directed consultations on capital tests, including conducting quantitative impact study exercises, will also resume beginning in the Fall of 2020.
IASB had issued, on June 25, 2020, certain amendments to IFRS 17, including deferral of the effective date of the standard to January 01, 2023. Thus, OSFI has announced that it intends to finalize the 2023 guidelines for Life Insurance Capital Adequacy Test (LICAT), Minimum Capital Test (MCT), and Mortgage Insurance Capital Adequacy Test (MICAT) in 2022 to align implementation with the new IFRS 17 effective date. The letter also states that once the Canadian Accounting Standards Board incorporates amendments to IFRS 17 into the CPA Canada Handbook, OSFI will revise its Accounting Advisories on IFRS 17 and deferral of IFRS 9. It will also update the timeline for the key milestones communicated in its June 27, 2018 letter accordingly. In the letter that was published on June 27, 2018, OSFI had communicated to federally regulated life and property and casualty insurers its plans for adapting the insurance capital guidance for IFRS 17. OSFI encourages insurers to continue their efforts toward implementing IFRS 17 and to use the additional time provided by IASB for testing and quality assurance purposes. OSFI will continue to work with the industry and key stakeholders to support a robust IFRS 17 implementation.
Keywords: Americas, Canada, Insurance, Insurance Contracts, COVID-19, IFRS 17, Deferral of Effective Date, Reporting, IFRS 9, LICAT, MCT, MICAT, OSFI, IASB
Previous ArticleBoE Clarifies Approach to Treatment of Payment Holidays on Form PL
Next ArticleBoE Provides Reporting Update on Form AS and Form FV
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.
PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).
FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
EBA launched the seventh annual transparency exercise for banks in EU.
The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to 32 questions.
MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template.
EC published the action plan to enhance the Capital Markets Union in EU over the coming years.