Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (“OSFI”) has revised the standard form trust agreement (“STA”) used by foreign companies in respect of vested assets in Canada. These changes were required due to the enactment of Bill C-8, the implementation of the Branch Adequacy of Assets Test for foreign property and casualty insurance companies and the coming into force of the amendments to regulations in accordance with section 610 of the Insurance Companies Act.
OSFI will begin using the new revised standard form on November 15, 2002, however its earlier use is encouraged. Existing trust agreements will be grandfathered for foreign life insurance companies and foreign fraternal benefit societies. Companies that wish to make amendments to grandfathered agreements after November 14, 2002 must use the revised standard form.
It should be noted that the structure of the STA was modified to isolate the company specific clauses found in the current STA from the standard terms and conditions. The new shorter STA, (OSFI Form No. 541), will assist us in processing new agreements more efficiently. For information on how to establish a trust agreement please see the enclosed detailed procedures
If you have any questions, please contact Mr. Andrew Peterson at (613) 990-6282 or by fax at (613) 990-2464.