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.

February 2018

Institution

Published

Title and Brief Summary

Status

Bank for International Settlements

February 27, 2018

Consultative Document: Pillar 3 disclosure requirements - updated framework The proposals include new or revised disclosure requirements:

  • for credit risk (including provisions for prudential treatment of assets), operational risk, the leverage ratio and credit valuation adjustment ("CVA");
  • that would benchmark a bank's risk-weighted assets ("RWA") as calculated by its internal models with RWA calculated according to the standardized approaches; and
  • that provide an overview of risk management, key prudential metrics and RWA.

Moreover, it proposes new disclosure requirements on asset encumbrance and capital distribution constraints.

Comments should be provided by May 25, 2018.

Payments Canada

February 24, 2018

Payments Canada: Changes to Our Rules and Standards

The following amendments were approved by Payments Canada's board of directors and the Department of Finance:

  • New ACSS Rule L3 — Collateral to provide for the procedures and methodologies for:
    • The initial establishment of a collateral pool and collateral pool pledge of each direct clearer, and the monthly recalibrations of the collateral pool size and collateral pool pledges to account for changes to value being cleared and settled through ACSS;
    • The recalculation of the collateral pool pledge of each direct clearer upon a default or the withdrawal of a direct clearer; and
    • The calculation of the collateral pool pledge of a new direct clearer.
  • ACSS Rule L1 amendments to provide for:
    • The methodology for calculating default and additional contributions of surviving direct clearers;
    • The process for making such contributions.
  • ACSS Rule B1 — amendments to incorporate into the Rules the current time at which settlement will be effected (note that there is no change to the current settlement time).

Effective

OSFI [Banks, Bank Holding Companies, Federally Regulated Trust and Loan Companies, Cooperative Retail Associations]

February 6, 2017

OSFI’s Implementation Timeline for the Net Stable Funding Ratio ("NSFR")

Based on implementation progress at the international level, OSFI has determined that it will target a revised NSFR implementation date for Canadian deposit-taking institutions.

Relevant areas of the Liquidity Adequacy Requirements ("LAR") Guideline have been updated to reflect the domestic NSFR implementation delay. Until OSFI begins its public consultation process on the NSFR rules and issues a draft guideline for comment, the LAR Guideline will continue to contain placeholder text reflecting OSFI’s commitment to implement the NSFR standard in Canada.

Effective January 2020.