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British Columbia financial institutions legislative and regulatory reporter

The British Columbia (B.C.) Reporter provides a monthly summary of B.C.’s legislative and regulatory developments of relevance to provincially regulated financial institutions. It does not address Canadian federal financial services legislative and regulatory developments, although this information is provided by BLG separately. In addition, purely technical and administrative changes (such as changes to reporting forms) are not covered.

July 2023


Title and brief summary


BC Financial Services Authority (BCFSA)

July 25, 2023

Capital Modernization: Consultation Paper for B.C. Credit Unions

BCFSA has released a consultation paper recommending changes to the current Capital Requirements Regulation to ensure that capital adequacy requirements continue to reflect the underlying risks. As a result of this initiative, a new Capital Rule will replace portions of the existing Capital Requirements Regulation respecting credit unions.

BCFSA is seeking comments on proposed changes laid out in the paper with respect to the following areas:

  • Consolidated reporting;
  • Components of regulatory capital:
    • Definition of capital;
    • Regulatory adjustments to capital;
    • Capital conservation buffer;
    • Minimum capital requirements;
    • Credit risk;
    • Operational risk; and
    • Market risk;
  • Leverage ratio requirements; and
  • Transitional and implementation arrangements.

Under the current proposal, these changes will take effect Jan. 1, 2026, followed by a two-year transitional period to allow credit unions to make any necessary changes to their policies and banking systems to meet the new requirements.

For an overview and timeline of the project, see the home page for the consultation.

Comments are due Oct. 23, 2023

July 19, 2023

BCFSA Launches Consultation on Natural Catastrophe and Climate-Related Risks

BCFSA has released a discussion paper which outlines its proposed approach towards natural catastrophes and climate-related risks. Natural Catastrophes and Climate-Related Risks: Managing Uncertainty and Building Resilience in the B.C. Financial Services Sector outlines the material risks posed to the financial services sector in B.C. as well as the specific impacts on each of the segments regulated by BCFSA. It then puts forward BCFSA’s proposed approach, which rests on two pillars:

  • Financial institutions and pension plan administrators identifying, measuring, and managing natural catastrophes and climate-related risks (NCCR) for themselves and consumers;
  • The responsibility all financial services providers have in ensuring consumers have sufficient understanding of the products and services they are receiving.

Comments are due Nov. 30, 2023

July 10, 2023

Insurer code of market conduct released in British Columbia

BCFSA has released its Insurer Code of Market Conduct, which reflects the Canadian Council of Insurance Regulators’ Conduct of Insurance Business and Fair Treatment of Customers guidance. The Code is based on twelve Fair Treatment of Customers Principles, with the intent of providing insurers with flexibility to determine the strategies, policies, processes, procedures, and controls that apply to the offer of insurance products and services to customers based on the nature, size, and complexity of their activities.

B.C. authorized insurers must adopt and comply with Code by April 1, 2024.

June 26, 2023

Consultation on proposed amendments to real estate data collection rules

BCFSA is consulting the public and licensees on proposed amendments to the Real Estate Services Rules (Rules) that will strengthen and clarify BCFSA’s authority to collect real estate data. BCFSA aims to enhance its ability to gather this data to strengthen its understanding of current real estate market conditions and practices, including market-driven risks to residential real estate consumers, and to aid its evidence-based policy and decision-making.

The proposed rules amendments also include:

  • new requirements for document retention; and
  • modifying the existing requirement to disclose conflicts of interest to require that disclosure in writing.

Comments are due Aug. 27, 2023


This Reporter is prepared as a service for our clients. It is not intended to be a complete statement of the law or an opinion on any subject. Although we endeavour to ensure its accuracy, no one should act upon it without a thorough examination of the law after the facts of a specific situation are considered.

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