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
HKMA on Fintech Adoption and Innovation by Banks in Hong Kong
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB Consults on Guide for Managing Climate and Environmental Risks
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA Assesses Interlinkages Between Recovery and Resolution Planning
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB Publishes Final MREL Policy Under the Banking Package
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies Amend Interim Final Rule on Transition Period for CECL
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB Releases Results of March Survey on Credit Terms and Conditions
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.
FINMA Adjusts Deadlines for COVID-19 Relief Measures for Banks
FINMA published guidance (06/2020) on extending or discontinuing various exemptions that were granted due to the COVID-19 crisis.
SRB Consults on Standardized Data Set for Bank Valuation in Resolution
SRB launched a consultation on the minimum data needed for valuation of a bank in resolution.
