Office of the Superintendent of Financial Institutions
OSFI Form 298 is an application form used by insurance institutions that are requesting approval from the Office of the Superintendent of Financial Institutions (OSFI) to:
OSFI Form 298 is also used by branches of foreign banks that are requesting approval from the Office of the Superintendent of Financial Institutions (OSFI) to:
OSFI’s approval is necessary to ensure that:
OSFI Form 298 must be approved by OSFI prior to completing the transaction(s). (i.e., before the Settlement Date)
The use of the OSFI Form 298 applies to all trust accounts requiring OSFI approval. The following parties are to be identified and appropriate signing authorities secured, as outlined in the Instructions.
The applicant preparing the Form should send the completed Form to OSFI for approval prior to the Settlement Date.
Sections 1 to 5 of the OSFI Form 298 must be fully completed. The following table provides further details on the fields required for completion:
FINANCIAL INSTITUTION INFORMATION
SECTIONS 3 & 4
IMPORTANT NOTE: Approval will not be given if any information is incomplete or inaccurate. The Trustee should fail the trade if required approval is not obtained by settlement date.
Select C for Canadian dollars; U for US dollars; E for Euros; O for Other currencies.
Note: Only one foreign currency can be used on each OSFI Form 298 request
TRANSACTION COMPLETED ON
Q. What is my company’s Financial Institution Code?
A. The Financial Institution Code is an OSFI identification number specific to each regulated financial Institution. You can contact your trustee or OSFI to obtain this code.
Q. Who do I contact to obtain the “R” code for my company’s reinsurance trust accounts?
A. The Financial Institution “R” code is a specific reinsurance trust account identification number provided by OSFI (Securities Administration Unit).
You can contact your trustee or OSFI’s SAU to obtain this code.
Q. How do you calculate “Total Vest In Trust” (Section 3)?
A. This total can only be the sum of one currency. It is the sum of the total market value of all asset(s) to be vested.
Q. How do you calculate “Total Release” (Section 4)?
A. This total can only be the sum of one currency. It is the sum of either the greater total market value or total book value of each asset(s) requested for release.
Q. How is the “Net Vest or Release” calculated?
A. It is the (Total Vest In Trust multiplied by the Currency Exchange Rate) less (Total Release multiplied by the Currency Exchange Rate).
Q. What assets can be vested in trust without the prior approval of OSFI?
A. Approved assets are those listed in Schedule “A” (refer to the appendix in the Standard Trust Agreement, Reinsurance Trust Agreement, or Standard Deposit Agreement).
Please note that securities listed in Schedule “A” must be:
Q. What assets require pre-approval by OSFI before they can be vested in trust?
A. Any asset not meeting the Schedule “A” criteria.
Q. What are the requirements for trade settlement, holding and registering of vested assets?
A. The trade must settle either through CDS Clearing and Depository Services Inc. or physically by a trustee. Registration must be in either the trustee’s or a nominee’s name.
Q. Who signs in Box 5 of the OSFI Form 298 when the account is a reinsurance trust account?
A. The Chief Agent or the authorized delegate from the federally regulated financial institution that is a party to the reinsurance trust agreement. The reinsurance company does not need to sign the form.
Q. How quickly will OSFI be able to process the OSFI Form 298?
A. OSFI will usually provide a decision on a Form 298 request within three business days (with a target of 80% for achieving this standard). Where requests require additional information from the financial institution and involve further analysis, our decision may take longer. OSFI makes every effort to respond to requests on a timely basis.
Q. What happens if a transaction(s) requiring OSFI’s approval settles without an approved OSFI 298 Form?
A. The transaction(s) will not be accepted by OSFI as an approved vested asset and should not be allowed to settle in the vested account. If such a transaction does settle, OSFI should be advised and steps taken to reverse the transactions.
Q. Are foreign currency transactions acceptable?
A. All transactions involving the vesting of foreign currency assets will require OSFI prior approval via the OSFI Form 298.
Q. Is OSFI’s approval required when a company replaces (sells) non-Schedule “A” assets with Schedule “A” assets?
A. OSFI’s approval is not required if the total value (the greater of book value or market value) of the non-Schedule “A” securities being sold is equal to or less than the total value of the Schedule “A” asset(s) being vested (purchased).
Q. What happens if the investment income in a trust account is reported in the monthly Schedule “B” report?
A. Once the investment income from a vested account is reported in the trustee’s monthly Schedule “B report”, the amount reported is considered to be a vested asset.
Q. What happens if the investment income in a trust account is invested in a money market instrument and I want to withdraw the income the next day or later?
A. The invested income can be withdrawn without OSFI approval, if it is done prior to the trustee’s monthly reporting. If the money market instrument or any other investment is included in the reported monthly Schedule “B”, it becomes a vested asset and requires OSFI approval to be released.
A. In the event you are not satisfied with the service received in connection with your 298 approvals request, you can call, fax or email OSFI as follows: