OSFI Consults on Revised Guideline for Insurer Asset Securitizations
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.
Comment Due Date: October 12, 2018
Effective Date: January 01, 2019
Keywords: Americas, Canada, Insurance, Securities, Securitization, Guideline B-5, OSFI
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023