AMF published the statement of key planned initiatives for 2019-2020 to inform the industry and the general public of the key regulatory and supervisory initiatives that it plans to carry out this year. These initiatives are part of the implementation of the 2017-2020 strategic plan of AMF. This is the first time AMF has published a statement highlighting its key planned initiatives in all relevant sectors. Going forward, this will be an annual exercise.
The key planned initiatives for 2019-2020 include the following:
- AMF plans to develop a guideline on margin requirements for derivative contracts not cleared by a central counterparty for insurers and deposit institutions. The guideline will be in line with the BCBS and IOSCO framework presenting international best practices for margin requirements for non-centrally cleared derivatives.
- Following the implementation of IOSCO’s Principles for financial benchmarks, AMF and Canadian Securities Administrators (CSA) will continue to work on establishing a regulatory framework for benchmarks that is consistent with best practices.
- Since 2017-2018, AMF has held various consultations, sent out questionnaires, and submitted the initial draft capital oversight standards for insurers of persons and damage insurers adapted to IFRS 17 on insurance contracts. The results of these initiatives will inform the research and development work to be performed in 2019-2020 in collaboration with various stakeholders, including the OSFI, Assuris, the Canadian Institute of Actuaries, the Canadian Life and Health Insurance Association, and the Insurance Bureau of Canada. This work will make it possible to monitor IFRS 17 implementation by insurers, adjust regulatory disclosure forms, and adapt capital oversight standards for such insurers.
- AMF will continue to prepare for May 01, 2020, when it will integrate the mortgage brokerage sector, which is currently regulated by the OACIQ (Organisme d’autoréglementation du courtage immobilier du Québec). AMF will develop an initial qualification program in cooperation with mortgage brokerage sector participants and will establish a professional development framework for this new clientele. AMF will also continue its discussions with sector participants to incorporate the requirements to be met by mortgage brokerage firms and representatives into the body of regulations under the Act respecting the distribution of financial products and services.
- AMF will launch a consultation on the regulatory and normative framework to implement the recommendations of the Canadian Council of Insurance Regulators (CCIR), with the aim to harmonize the frameworks for segregated funds and mutual funds.
- Further to the updating of the IAIS Insurance Core Principles, particularly ICP 19 on conduct of business (or sound commercial practices) and to reflect the work done across Canada on the fair treatment of consumers, AMF will update its Sound Commercial Practices Guideline this year.
Keywords: Americas, Canada, Quebec, Banking, Insurance, Securities, Derivatives, Central Counterparty, Financial Benchmarks, IFRS 17, Insurance Contracts, ICP, IOSCO, IAIS, BCBS, AMF
Previous ArticleSNB Publishes Capital Adequacy Reporting Forms Under Basel III
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.