The Office of the Superintendent of Financial Institutions Canada (OSFI) has published a draft revised Guideline E-13 entitled "Regulatory Compliance Management". The purpose of the update is to align OSFI's guidance on regulatory compliance management better with the revised corporate governance guideline, as well as with OSFI's supervisory framework and assessment criteria.
The Office of the Superintendent of Financial Institutions Canada (OSFI) has released for consultation Draft Guideline B-21 Residential Mortgage Insurance Underwriting Practices and Procedures. The draft guideline sets out OSFI's prudential expectations for residential mortgage insurance underwriting and related activities in the form of six fundamental principles.
The International Monetary Fund (IMF) has released its Financial System Stability Assessment in accordance with the IMF's Financial Sector Assessment Programme. The assessment noted that the insurance sector performed well in stress tests undertaken by the IMF, but also offered suggestions to safeguard further the stability of the insurance sector.
The Office of the Superintendent of Financial Institutions Canada (OSFI) has issued a draft advisory on board and senior management changes which applies to all federally regulated financial institutions (FRFIs), including insurers. The draft advisory is based on the principle that FRFIs should notify OSFI whenever such changes are contemplated.
The two main vehicles for establishing an insurance business in Canada federally are incorporation of a Canadian insurance company and qualification of a Canadian branch of a foreign insurance company. The information requirements and timing for both are very similar, and both involve an extensive approval application to the Office of the Superintendent of Financial Institutions Canada.
In certain respects, a 2009 Office of the Superintendent of Financial Institutions advisory opened the door to foreign insurers which do not already have licensed Canadian branches to consider entering into insurance contracts that cover Canadian risks. However, before doing so, unlicensed foreign insurers should ensure that provincial legislation is consulted and that the applicable unlicensed insurance regime is followed.
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