Featured Product

    OSFI Outlines Planned Focus Areas for 2020-2021

    March 10, 2020

    OSFI published its departmental plan for 2020-2021. The published information covers the planned work and the results OSFI will strive to achieve during the upcoming year. To support Strategic Plan priorities, OSFI will focus on a number of key initiatives in the areas of capital, accounting, reinsurance, governance, crisis management, and non-financial risks.

    The departmental plan highlights the key focus areas of OSFI over the coming year, including the following:

    • Capital rule-making initiatives will focus on implementing Basel III capital and liquidity reforms. The ongoing work of OSFI to tailor its domestic capital and liquidity frameworks for small and medium-size deposit-taking institutions will continue. 
    • OSFI will continue to review Domestic Stability Buffer semi-annually and will publicly disclose any change to its level and the rationale for the change stemming from these reviews.
    • OSFI will prepare for the implementation of the IFRS 17 on insurance contracts by adapting its capital tests for mortgage, life, and property and casualty (P&C) insurers, monitoring industry progress, and publicly consulting on new regulatory returns.
    • OSFI will conduct public consultations on the implementation of the market discipline (Pillar 3) disclosure requirements and assess the interaction of the expected credit loss framework with the regulatory capital framework for deposit-taking institutions. 
    • Following the issuance of a discussion paper in June 2018 and the analysis of industry feedback in 2019-20, OSFI will put forward draft proposals for changes to expectations and guidance relating to its reinsurance framework.
    • OSFI plans to build on its industry culture scan and reviews conducted in 2019-20 to enhance its ability to assess and address issues related to risk governance and culture.

    In the coming year, OSFI will enhance its understanding and share its findings with the financial industry on the potential financial impact associated with climate risks. OSFI has asked larger insurers to develop climate change scenarios for their Own Risk and Solvency Assessment or ORSA. OSFI will also ask life and P&C insurers to perform a biennial climate change stress test with specific scenarios, following the implementation of IFRS 17. OSFI also plans to examine to what extent private pension plans investment decisions should involve consideration of climate change, environmental, social, and governance factors. OSFI aims to enhance its capabilities and expectations related to technology and cyber risk. Building on a public discussion paper to seek input in areas such as operational resilience, cyber risk, and emerging technologies, OSFI will conduct consultations to inform future revisions to regulatory guidance and expectations. Finally, OSFI will continue to evolve its expectations around model risk management, including developing regulatory expectations on the use of artificial intelligence tools. 

     

    Related Link: Departmental Plan

    Keywords: Americas, Canada, Banking, Insurance, Departmental Plan, Basel III, IFRS 17, Pillar 3, Climate Change Risk, ESG, ORSA, Pensions, Governance, Cyber Risk, Fintech, Artificial Intelligence, Stress Testing, OSFI

    Featured Experts
    Related Articles
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868