Legislative and Regulatory Rapporteur for Federal Financial Institutions – August 2021



Title and brief summary



August 13, 2021

The Office of the Superintendent of Financial Institutions (OSFI) has issued updated requirements governing how federally regulated financial institutions (FRFIs) must disclose and report technology and cybersecurity incidents to OSFI.

The updated Technology and Cybersecurity Incident Reporting Notice supports a coordinated and integrated response to technology and cybersecurity incidents when they occur at FRFIs.

In addition, OSFI has also released an update to the Cyber ​​Security Self-Assessment that helps FRFIs assess and improve their current readiness for emerging and expanding cyber threats.

August 13, 2021

OSFI publishes the latest revisions to its notice: “Global Systemically Important Banks – Public Disclosure Obligations” published in September 2015.

In July 2018, the Basel Committee on Banking Supervision (BCBS) published an updated assessment methodology that is used annually by the BCBS and the Financial Stability Board (FSB) to identify global systemically important banks. (G-SIB). The updated assessment methodology will come into effect for the G-SIB 2022 assessment exercise.

The revised opinion addresses changes to the disclosure requirements included in the updated assessment methodology, in particular the new trade volume indicator and the inclusion of insurance activities for some existing G-SIB indicators . The revised opinion also provides additional guidance on the availability of publicly released G-SIB indicators and the nature of the qualitative information accompanying the disclosure requirements.

Questions relating to the Board may be directed to Lindsay Cheung, Senior Analyst, Capital Division, by e-mail at [email protected].

August 13, 2021

OSFI’s memos to the Appointed Actuary (Life and P&C) 2021 are now posted on OSFI’s website.

August 12, 2021

OSFI has confirmed that the exclusion of securities issued by sovereign states from the leverage ratio exposure measure for deposit-taking institutions (DLI), introduced at the start of the COVID-19 pandemic, will not be extended after December 31, 2021. Central bank reserves will continue to be excluded from the leverage ratio exposure measure for DTIs.

The decision to allow the temporary exclusion of government-issued securities to expire is consistent with previous OSFI decisions to halt other temporary relief measures introduced in response to COVID-19 when they are not forthcoming. more credible, coherent, necessary and fit for purpose in the Canadian context. OSFI will closely monitor the conditions and remains ready to take any further action, including the removal of other temporary measures, if necessary.

August 5, 2021

Continuing its initiative to develop tailored requirements that take into account the unique nature of Canadian small and medium-sized banks (SMEs), OSFI is releasing for public comment the Draft Pillar 3 Disclosure Guideline for PMIBs.

The draft guideline lists the disclosures required by PMIBs and their respective implementation dates. OSFI will include the detailed tables and models in the final guideline.

Questions and comments should be directed to Javinder Sidhu, Accounting Policy Division, at [email protected] by September 29, 2021. An unassigned summary of comments received, along with OSFI’s responses, will be posted on OSFI’s website when the final version of the guideline is released. Effective November 1, 2022. Questions and comments before September 29, 2021.

Effective November 1, 2022. Questions and comments before September 29, 2021.


August 30, 2021

Following a public consultation that ended earlier this year, the Application document on macroprudential supervision was adopted by the IAIS Executive Committee. The Application Document provides further guidance on supervisory material related to macroprudential supervision in Core Principle of Assurance 24. The results of the public consultation can be found on the IAIS website – Closed Consultations page .


August 20, 2021

Continuity of Access to MFIs for Resolution Firms: Streamlined Information Collection to Support Resolution Planning (Revised 2021)

This questionnaire updates the previous questionnaire for MFIs, which was released in August 2020. It has been revised following an assessment of stakeholder first experiences with the process via an online survey in April 2021. So While a large majority of respondents (from various points of view) indicated that the template questionnaire was useful, a number of suggestions were also made. Where possible, these have been incorporated as clarifications or amendments to the introductory section. No major changes were made to the questionnaire itself, reducing the burden on MFIs when their responses are updated next time.

The questionnaire was developed in consultation with MFIs, MFI participants and MFI supervisors. It covers general information about the MFI and its legal structure; (the termination policy / contractual arrangements; and operational arrangements and processes to facilitate continued access to resolution. It is designed to reduce the burden of duplicate information collection efforts by streamlining the collection of certain information The questionnaire aims to reduce the ‘many to one’ nature of inquiries from participants and MFI authorities to MFIs for resolution planning and to streamline the provision of resolution. this information by MFIs to companies and authorities through the use of a common template.

All MFIs are encouraged to complete the questionnaire and publish their responses, or make them available to users of MFI services and resolution authorities by other means to inform their resolution planning.

The FSB emphasizes that if an MFI chooses not to complete the questionnaire, it must be prepared to respond to requests for information from its clients (and their resolution authorities) within a mutually agreed upon reasonable time frame.


August 20, 2021

Continuity of Access to MFI Services (MFI Intermediaries) for Resolution Firms: Information Framework for MFI Intermediaries to Support Resolution Planning

In 2017, the FSB published its Guidelines on the continuity of access to financial market infrastructures for a company in resolution. The Guide sets out provisions and safeguards aimed at facilitating the continuity of access to MFI services for a firm in resolution in order to maintain the firm’s critical functions that rely on continued access to MFI services. As part of the Guide’s implementation, authorities and businesses (as users of the IMF service) develop plans to facilitate continued access to resolution. This requires information on the nature of the MFI service user’s relationship with MFIs and MFI intermediaries on the provisions and safeguards that would affect an MFI service user’s access to the services. MFI in the run-up to and during its resolution.

The framework defined in this document is intended to help MFI intermediaries better understand what information clients and their RAs may need from them. It does this by providing an overview of potentially relevant background information for clients and RAs, which clients and MFI intermediaries can then discuss, if necessary, as part of their bilateral engagement. Thus, the framework makes it more predictable for IMF intermediaries which subjects could be part of their clients ‘requests for information and / or their clients’ RAs. This could allow them to identify opportunities to streamline their response process, thereby reducing the resources required to provide this information.

As part of their outreach, the FSB will host a webinar for stakeholders on this framework on September 16, 2021. Representatives of MFI service providers, users of MFI services and authorities wishing to attend should contact [email protected]g for details.


August 18, 2021

Public responses to the consultation on policy proposals to improve the resilience of money market funds

On June 30, 2021, the Financial Stability Board (FSB) published Policy proposals to improve the resilience of money market funds: consultation report. Interested parties have been invited to provide written comments by August 16, 2021. Public comments received are now available. The FSB plans to publish the final policy proposals in October 2021.


Canada Gazette, Part I, Volume 155, Number 34

August 18, 2021

Notice of designation to the Canadian Payments Association

The Canadian Payments Association (Payments Canada) operates Lynx, Canada’s modernized wholesale payments system, which will be used to settle transactions in other financial market infrastructures, boost the Bank of Canada’s interest rate, and process high value payments in the country. Lynx is an eligible system to be designated under the Act since it has at least three participants (at least one of which is a Canadian participant and at least one is headquartered in a jurisdiction other than Ontario, where the head office is of Payments Canada is located), clearing and settlement is all done in Canadian dollars, and the payment obligations that flow from the system are ultimately settled through adjustments to participants’ accounts at the Bank of Canada.

In accordance with this notice, the Governor of the Bank of Canada expresses the opinion that Lynx could be operated in such a way as to present a systemic risk and should therefore be designated as subject to Part I of the Act. The Minister of Finance believes that it would be in the public interest to designate Lynx.

Accordingly, Lynx is hereby designated as a system subject to Part I of the Payment Clearing and Settlement Act, from the day Lynx begins operations.

Canada Gazette, Part II, Volume 155, Number 17

August 5, 2021

Canadian Payments Association By-Law No. 9 – Lynx: SOR / 2021-182

The Board of Directors of the Canadian Payments Association, pursuant to subsection 18 (1) of the Canadian Payments Act, appends By-law No. 9 – Lynx.

Canada Gazette, Part II, Volume 155, Number 17

August 4, 2021

Financial Consumer Protection Framework Regulations: SOR / 2021-181

Regulations supporting the coming into force of the new legislative framework, the Financial Consumer Protection Framework in the Bank Act, have been published in the Canada Gazette

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Marianne R. Winn

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