The Reporter provides a monthly summary of Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions. It does not address Canadian provincial financial services legislative and regulatory developments, although this information is tracked by BLG and can be provided on request. In addition, purely technical and administrative changes (such as changes to reporting forms) are not covered.
October
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Institution |
Published |
Title and Brief Summary |
Status |
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Finance |
Introduced October 27, 2017 |
Division 4 of Part 5 It amends the Canada Deposit Insurance Corporation Act to clarify the treatment of, and protections for, eligible financial contracts in a bank resolution process. Division 5 of Part 5 It amends the Bank of Canada Act to specify that the Bank of Canada may make loans or advances to members of the Canadian Payments Association. It also amends the Canada Deposit Insurance Corporation Act to specify that the Bank of Canada and the Canada Deposit Insurance Corporation are exempt from stays even where obligations are secured by real property or immovables. Division 6 of Part 5 It amends the Payment Clearing and Settlement Act in order to expand and enhance the oversight powers of the Bank of Canada by further strengthening the Bank's ability to identify and respond to risks to financial market infrastructures in a proactive and timely manner. |
Second Reading and Referral to Committee in the House of Commons |
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Bank for International Settlements |
Identification and management of step-in risk The guidelines aim to mitigate the systemic risks stemming from potential financial distress in shadow banking entities spilling over to banks. |
Effective by 2020 |
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OSFI [Federally regulated property and casualty insurance companies] |
Minimum Capital Test for Federally Regulated Property and Casualty Insurance Companies The revisions to the guideline are intended to ensure OSFI's capital guidance for P&C companies:
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Effective January 1, 2018 |
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Finance |
Published (Gazette) October 18, 2017 |
By-law Amending the Canada Deposit Insurance Corporation Deposit Insurance Information By-law Substantive amendments to the By-law are necessary to reflect the importance of electronic means of transacting with financial institutions, and the resultant impact on how depositors receive information about deposit insurance protection. In addition, amendments are required to ensure the By-law continues to contribute to consumer awareness about deposit insurance protection. |
Effective September 29, 2018 with exceptions |
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OSFI [Bank, Trust and Loan Companies, Life Insurers and Cooperative Credit Associations]
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Final Revised Guideline B-20: Residential Mortgage Underwriting Practices and Procedures
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Effective January 1, 2018 |
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OSFI [Bank, Trust and Loan Companies, Federally Regulated Insurers and Federally regulated Cooperative Credit Associations]
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Issuance of Shares or Membership Shares in Consideration of Property In these Transactions Instructions, the applicant is generally expected to provide:
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Effective |
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OSFI [Federally regulated financial institutions] |
Ruling — Acting Jointly or in Concert OSFI published a ruling on whether two shareholders (A and B), who are parties to a shareholders' agreement, are "acting jointly or in concert" in respect of the related shares. They do not negate the need to obtain any necessary approval of the transaction under the relevant federal financial institutions legislation. Rulings are not necessarily binding on OSFI's consideration of subsequent transactions as these transactions may raise additional or different considerations. |
Effective |
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OSFI [Federally regulated financial entities] |
Revised transaction instructions for applicants seeking letters patent of amalgamation There are two types of amalgamations: short-form and long-form. Both types require the amalgamating entities (i.e., the applicants) to jointly apply to the Minister for letters patent of amalgamation ("Letters Patent") continuing them as one federally regulated entity ("FRE"). Certain conditions, however, must be met before being eligible to apply for Letters Patent. |
Effective |
Disclaimer
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.