Office of the Superintendent of Financial Institutions
This document provides Federally Regulated Insurance Institutions with guidance on OSFI’s requirements relating to letters of credit (LOC) approvals.
OSFI will recognize an approved LOC as security for the purposes of:
If the FRFI is a Canadian Insurance Company, the LOC is kept for safekeeping.
Of note, OSFI cannot demand that the issuer comply with our requests. Further instruction must come from the applicant and/or the beneficiary, who should also follow up to ensure OSFI requests are complied with. If required changes are not submitted, the LOC and/or amendment remain outstanding and unapproved.