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Financial Services Law Analysis and Updates for the Canadian and Cross-Border Financial Community

Category Archives: Regulation

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Amendments to Anti-Money Laundering Regulations and Updated Guidelines

Posted in Regulation

On February 14, 2013, we discussed the publication of amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the “Regulations”). Those amendments to the Regulations came into force on February 1, 2014. The Financial Transactions and Reports Analysis Centre of Canada has updated Guideline 4 (Implementation of a Compliance Regime) and Guideline… Continue Reading

OSFI Proposes Specific Notification Requirements for Changes in Directors and Officers

Posted in Regulation

On January 20, 2014, the Office of the Superintendent of Financial Institutions (OSFI) issued its Draft Advisory Changes to the Membership of the Board or Senior Management of a federally-regulated financial institution (FRFI) for public comment.  The Draft Advisory requires a FRFI to provide OSFI with prior written notification of changes to its board of… Continue Reading

The Speech from the Throne and the Comprehensive Economic and Trade Agreement

Posted in Bank Act, Legislation, Regulation

Last week the Government of Canada (“GC”) made two major announcements. The first was the Speech from the Throne (the “Speech”) which took place on October 16, 2013. The Speech, which outlined the GC legislative plan for the new session of parliament, contained actions that the GC will take to protect Canadian consumers. Two of… Continue Reading

Canadian Banks Ranked as Soundest in World Economic Forum’s Global Competitiveness Report

Posted in Regulation

The World Economic Forum has released The Global Competitiveness Report 2013-2014.  Canada has again ranked highest in the category “Soundness of Banks”, the sixth consecutive time that Canadian banks have ranked highest in this category.  The Forum noted the following regarding Canada in the Country Profile Highlights contained in the Report: The country continues to benefit… Continue Reading

Complaints Regulations for Bank Customers Now in Force

Posted in Bank Act, Consumer Credit, Regulation

This past April, we discussed the publication of the final regulations for governing complaints regarding products or services provided by banks and authorized foreign banks in Canada (the “Complaints (Banks, Authorized Foreign Banks and External Complaints Bodies) Regulations”).  Those regulations came into force on September 2, 2013.  You can read our overview of the regulations… Continue Reading

Update – Letter from LSTA, American Bankers Association Requests Time for Implementation of Final Guidance on Leveraged Lending

Posted in Debt Markets, Regulation

This entry updates our entry of April 9, 2013 and this corresponding Osler Update by Andrew Herr regarding the Final Guidance on Leveraged Lending.  On April 11, 2013, the Loan Syndications and Trading Association (LSTA) and the American Bankers Association (ABA) issued a joint letter to Office of the Controller of the Currency, the Board of Governors… Continue Reading

Government Announces New Complaints Regulations for Bank Customers, Oversight by Federal Consumer Agency of Canada

Posted in Bank Act, Consumer Credit, Regulation

On April 10, 2013, the Canadian federal government announced the final publication of new regulations that will govern the system for resolving complaints regarding products or services provided by banks and authorized foreign banks in Canada (the “Complaints (Banks, Authorized Foreign Banks and External Complaints Bodies) Regulations”). The regulations (which were first published for comments… Continue Reading

U.S. Regulators Issue Final Guidance on Leveraged Lending

Posted in Debt Markets, Regulation

Andrew Herr has published an Osler Update titled “U.S. Regulators Issue Final Guidance on Leveraged Lending.”  You can read the full update here on Osler.com. On March 22, 2013, U.S. regulators, consisting of the Office of the Controller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve) and the Federal Deposit… Continue Reading

The Canadian Federal Budget and Financial Institutions

Posted in Regulation

The recently published federal budget (titled “Canada’s Economic Action Plan 2013”) included high level guidance regarding the Government’s priorities for the regulation of financial institutions, services and markets. The details of how these areas will be regulated will become clear only when the applicable legislation and regulations are introduced.  Below is a brief overview of… Continue Reading

Canada’s Largest Six Banks Designated as Systemically Important by OSFI

Posted in Regulation

In conjunction with A framework for dealing with domestic systemically important banks issued by the Basel Committee on Banking Supervision (BCBS), the Office of the Superintendent of Financial Institutions Canada (OSFI) has issued an Advisory, “Domestic Systemic Importance and Capital Targets – DTIs.” The Advisory identifies each of Royal Bank of Canada, Toronto-Dominion Bank, Bank… Continue Reading

Amendments to Anti-Money Laundering Regulations

Posted in Anti-Money Laundering, Regulation

On February 13, 2013, the Government of Canada published in the Canada Gazette certain amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the “Regulations”).  These amendments will come into force one year after their publication (i.e., in February 2014). The full text of the amendments can be found here.  In summary,… Continue Reading

OSFI Publishes Advisory Regarding Ownership Interests in Commodities Taken by Federally Regulated Financial Institutions

Posted in Bank Act, Derivatives, Regulation

In response to inquiries from federally regulated financial institutions (“FRFIs”), the Office of the Superintendent of Financial Institutions (“OSFI”) has published Advisory 2013-01, Business and Powers – Ownership Interest in Commodities. The Advisory sets out principles relevant to determining whether a transaction that involves an FRFI taking an ownership interest in commodities generally appertains to… Continue Reading

Mobile Payment Transactions – Proposed Expansion of the Code of Conduct for the Credit and Debit Card Industry in Canada

Posted in Payments, Regulation

On September 18th, 2012, the federal government announced the proposed expansion of the Code of Conduct for the Credit and Debit Card Industry in Canada (the “Code”) to apply to credit and debit network participants that provide point-of-sale payment services through mobile devices. The government undertook to amend the Code, which currently does not expressly address… Continue Reading

Draft Letter Issued by OSFI – Capital Disclosure Requirements for Financial Institutions

Posted in Regulation

On August 13, 2012, the Office of the Superintendent of Financial Institutions issued for public comment a draft letter (the “Draft Letter”) that provides clarification on the implementation of the Basel Committee on Banking Supervision’s final rules regarding the information that financial institutions must publicly disclose when detailing the composition of their capital (the “BCBS… Continue Reading

OSFI releases draft revisions to its Guideline on Corporate Governance

Posted in Corporate Governance, Regulation

On August 7, 2012, the Office of the Superintendent of Financial Institutions (OSFI) released for public comment draft revisions to its Guideline on Corporate Governance.  The draft Guideline updates the original version, first published in 2003, and includes refinements in the areas of board effectiveness, including composition and competencies; risk governance, including risk appetite and… Continue Reading

Revised OSFI Guideline B-20 – Residential Mortgage Underwriting Practices and Procedures

Posted in Mortgages, Regulation

The final version of the revised Guideline B-20 Residential Mortgage Underwriting Practices and Procedures was published by OSFI on June 21, 2012. The Guideline, together with the tightening of the rules for government-backed insured mortgages announced by the Minister of Finance on the same day (to, among other things, reduce the maximum amortization period to… Continue Reading

New Proposed Regulations for Federal Credit Unions – A Step Closer to a Federal Regime

Posted in Regulation

The Federal Government has just released new regulations in draft form which are intended to implement recent amendments to the Bank Act pursuant to which new or existing credit unions could come under the Bank Act and continue as federal credit unions, thereby retaining the essential characteristics of a credit union but at the same… Continue Reading

Importance of Anti-Money Laundering Controls

Posted in Regulation

If businesses needed any evidence of the importance of having adequate anti-money laundering controls in place, perhaps the possibility of a $1 billion fine that could be imposed by U.S. regulatory authorities on a financial institution for having inadequate controls will get their attention. See the link to this story at http://www.domain-b.com/finance/banks/hsbc/20120713_helping_fund.html. In Canada, a… Continue Reading

Corporate Governance Issues for Smaller Financial Institutions

Posted in Regulation

On May 24, 2012, OSFI Superintendent Julie Dickson delivered a speech to the Trust Companies Association of Canada.  The speech was focused on highlighting certain governance issues especially relevant to smaller financial institutions. The following issues were discussed: Lack of Diversification: Because smaller financial institutions generally have a lack of diversification in product lines and… Continue Reading

Financial Institutions and Cloud Computing: An Update from OSFI on Guideline B-10 – Reading Their Message Between the Lines

Posted in Regulation

It would not be an exaggeration to say that a number of technology companies (and their customers) see Cloud Computing as an important development on the question of how to store ever increasing amounts of data at a reasonable price and at the same time permit the accessing of that data in an efficient manner…. Continue Reading

Mortgage Prepayment under the Interest Act – More Exempt Entities

Posted in Regulation

On January 1, 2012, the Prescribed Entities and Classes of Mortgages and Hypothecs Regulations (the “Regulations”) under the Interest Act (Canada) (the “Act”) came into force. The Regulations expand the class of “prescribed entities” that are exempted from the protections afforded by Section 10 of the Act. Section 10 of the Act provides for mandatory… Continue Reading

Anti-Money Laundering Legislation – Canadian Department of Finance Review

Posted in Regulation

In December 2011, the federal government launched a consultation aimed at updating Canada’s regime for combating money laundering and terrorist financing. The Department of Finance released a consultation paper setting out proposals to strengthen Canada’s anti-money laundering and anti-terrorist financing legislative framework, which is administered through the PCMLTFA. Comments on the consultation paper are requested… Continue Reading

Quebec Bill 24 Proposes New Requirements for Consumer Contracts of Credit

Posted in Consumer Credit, Regulation

This entry is based on a recently published E-Review on www.osler.com.  On June 7th, 2011, An act to combat consumer debt overload and modernize consumer credit rules (Bill 24) was tabled in the National Assembly of Québec. If enacted in its current form, Bill 24 will affect a broad scope of businesses, but predominantly those which… Continue Reading