Frequently Asked Questions – Regulations

The FAQs below are meant to provide Canadians and businesses with basic information about a selection of regulations administered by the Office of the Superintendent of Financial Institutions. These ten regulations were selected based on inquiries received. All of the regulations are available on the Department of Justice Website, which includes a Consolidated Regulations web page that lists regulations alphabetically and a Consolidated Acts page that lists the Acts alphabetically. Each Act contains links to all associated regulations.


1. What is the purpose of these regulations?

The legislation governing federally regulated financial institutions (FRFIs) (other than banks) places limits on the size of their commercial lending activities. These regulations prescribe certain elements in relation to these limits.

2. What are the key elements of these regulations?

These regulations (a) establish criteria for certain loans and investments in order for them not to fall within the definition of a commercial loan, (b) define which subsidiaries of a company are included in the calculation of the 5% of total assets limit, (c) define lending limits for certain types of companies, and (d) define total assets used in the commercial lending limit calculation.

3. How do these regulations affect Canadian businesses?

These regulations provide a framework for the commercial lending activities that may be undertaken by FRFIs (other than banks). FRFIs that are subject to limits on their commercial lending activities are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

The regulations applicable to cooperative credit associations and trust and loan companies came into force in June of 1992. The regulations applicable to insurance companies, societies, insurance holding companies and foreign companies came into force in October of 2001 and were last amended in January of 2010 to prescribe commercial lending limits in respect of foreign companies (such limits were previously specified in the legislation) and to add the concept of “marine company”. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Commercial Loan Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations define the financial leasing activities that federally regulated financial institutions (FRFIs) may undertake either directly or through a financial leasing entity.

2. What are the key elements of these regulations?

These regulations (a) define certain terms used in the definition of “financial leasing entity” in the legislation, (b) prescribe activities related to the financial leasing of personal property, and (c) set out restrictions and limitations on financial leasing activities.

3. How do these regulations affect Canadian businesses?

These regulations limit the financial leasing activities that may be undertaken by FRFIs. FRFIs are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

These regulations came into force in October of 2001. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Financial Leasing Entity Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations set out requirements with respect to the establishment and operation of a foreign bank representative office (FBRO).

2. What are the key elements of these regulations?

These regulations: (a) establish the process for the registration of an FBRO; (b) specify the activities that an FBRO is permitted to undertake, and; (c) prescribe certain annual requirements with respect to the operation of an FBRO.

3. How do these regulations affect Canadian businesses?

These regulations only apply to foreign banks seeking to register and operate a representative office in Canada. All foreign banks that operate an FBRO in Canada are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

These regulations came into force in May of 1992 and were last amended in May of 2008 to address an inconsistency between the French and English versions and to make minor corrections. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Foreign Bank Representative Office Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations address the extent to which non-insurance federally regulated financial institutions (FRFIs) may undertake the business of insurance and the relations that these entities may maintain with insurance companies, agents and brokers.

2. What are the key elements of these regulations?

These regulations address: (a) the insurance-related activities in which non-insurance FRFIs may engage; (b) the manner in which they may provide, promote and solicit business in connection with these activities, and; (c) the sharing of certain types of information (e.g., customer information) with insurance companies, agents and brokers.

3. How do these regulations affect Canadian businesses?

These regulations provide a framework for the insurance-related activities of non-insurance FRFIs. FRFIs other than insurance companies are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

The regulations applicable to banks, bank holding companies and trust and loan companies came into force in June of 1992. The regulations applicable to authorized foreign banks came into force in June of 1999. The regulations applicable to cooperative credit associations came into force in August of 2003. All regulations were last amended in March of 2012 to address the issue of promotion on a web site. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Insurance Business Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations prescribe certain elements regarding real property and equity investment limits established in the legislation governing federally regulated financial institutions (FRFIs).

2. What are the key elements of these regulations?

These regulations: (a) exempt certain classes of institutions from the real property and equity investment limits, based on the size of the institution, (b) establish limits for real property and equity investments as well as an aggregate limit and (c) define direct and indirect interests in real property.

3. How do these regulations affect Canadian businesses?

These regulations provide a framework for real property and equity investments made by FRFIs. FRFIs are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

The regulations applicable to banks, bank holding companies, Canadian societies and trust and loan companies came into force in October of 2001. The regulations applicable to foreign companies came into force in June of 1992 and were last amended in January of 2010 to prescribe real property and equity investment limits applicable to foreign companies (such limits were previously specified in the legislation) and to add the concept of “marine company”. The regulations applicable to insurance companies, insurance holding companies and cooperative credit associations came into force in October of 2001 and were last amended in September of 2011 to address inconsistencies between the French and the English versions or to make minor corrections. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Investment Limits Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations prescribe certain elements regarding the acquisition by federally regulated financial institutions (FRFIs) of non-controlling substantial investments in certain entities.

2. What are the key elements of these regulations?

These regulations (a) permit FRFIs to acquire less than a controlling interest in certain entities that they would otherwise be required to control, (b) impose limits on such investments, based on a percentage of their regulatory capital, and (c) limit the making of loans to such entities.

3. How do these regulations affect Canadian businesses?

These regulations provide a framework is respect of certain types of types of equity investments made by FRFIs. FRFIs are expected to establish policies and procedures to ensure compliance with the Regulations.

4. What is the timeline for implementation?

All regulations came into effect in October of 2001. The regulations applicable to cooperative credit association, insurance companies, insurance holding companies and trust and loan companies were last amended in September of 2011 to address inconsistencies between the French and the English versions or make minor corrections. The regulations applicable to banks and bank holding companies were last amended in December of 2012 to extend their application to federal credit unions. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Minority Investment Regulations, please contact us.


1. What is the purpose of these regulations?

The legislation governing federally regulated financial institutions (FRFIs) prohibits transactions between a FRFI and its related parties, other than transactions that are specifically permitted by the legislation or that are prescribed in regulations. These regulations prescribe permitted related party transactions not otherwise listed in the legislation.

2. What are the key elements of these regulations?

These regulations set out a number of related party transactions that FRFIs may enter into that would not otherwise be permitted, including certain tax or securities-related transactions.

3. How do these regulations affect Canadian businesses?

These regulations permit FRFIs to enter into a broader range of related party transactions than permitted by the legislation. FRFIs are expected to establish policies and procedures with respect to restrictions and requirements related to related party transactions.

4. What is the timeline for implementation?

The regulations applicable to banks came into force in June of 1992 and were last amended in December of 2012 to extend their application to federal credit unions. The regulations applicable to cooperative credit associations, insurance companies and trust and loan companies came into force on May 28, 1996.

The regulations are in the process of being amended to broaden the list of permitted related party transactions. Industry stakeholders were consulted on proposed amendments. The proposed regulations are expected to be pre-published in Part I of the Canada Gazette in the fall of 2014 or winter 2015.

5. Where can I get more information?

For questions regarding the Related Party Transactions Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations set out the framework under which FRFIs may invest in entities that they would not otherwise be permitted to acquire because they undertake activities that the FRFI would not be permitted to undertake (referred to as “specialized financing investments”).

2. What are the key elements of these regulations?

The regulations establish constraints that are imposed on specialized financing investments, including constraints regarding: (a) the types of activities in which such entities may engage, (b) the size of the FRFI’s investment in such entities, and (c) the length of time that the FRFI can hold such entities. The regulations also provide relief from certain approval and control requirements set out in the legislation.

3. How do these regulations affect Canadian businesses?

These regulations provide for a broader range of entities in which FRFIs may invest. FRFIs that make specialized financing investments are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

The regulations came into force in October of 2001. The regulations applicable to foreign banks were amended in May of 2008 to set out the conditions under which a foreign bank or an entity associated with a foreign bank can directly engage in specialized financing activities in Canada. A number of minor technical amendments have also been made to all the regulations. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Specialized Financing Regulations, please contact us.


1. What is the purpose of these regulations?

These regulations restrict the disclosure by federally regulated financial institutions (FRFIs) of certain information.

2. What are the key elements of these regulations?

These regulations preclude FRFIs from disclosing the types of information listed in the Regulations, such as ratings assigned by the Superintendent, stages of intervention assigned to the institution, formal orders issued to the FRFI and any information related to annual or special examinations or other supervisory review. The Regulations provide for limited disclosure under specified circumstances, so long as the information remains confidential.

3. How do these regulations affect Canadian businesses?

These regulations govern the disclosure of supervisory information. FRFIs are expected to establish policies and procedures to ensure compliance with these regulations.

4. What is the timeline for implementation?

The regulations came into force in November of 2001 and were last amended in September of 2011 to address inconsistencies between the French and the English versions or to make minor corrections. No changes to the existing regulations are currently planned.

5. Where can I get more information?

For questions regarding the Supervisory Information Regulations, please contact us.


1. What is the purpose of these regulations?

Employers generally set up pension plans voluntarily; however, once a pension plan is established, it must be funded and administered in compliance with applicable pension laws. These regulations set out details concerning the minimum standards for federally regulated private pension plans as set out in the Pension Benefits Standards Act, 1985. These pension plans cover employees in federally regulated industries such as banking, telecommunications and interprovincial transportation.

2. What are the key elements of these regulations?

These regulations set out requirements relating to issues such as: (a) the minimum funding requirements for pension plans, (b) the rules surrounding the investment of pension funds, (c) locking-in and unlocking requirements for pension benefits, (d) options for transferring pension benefits from the pension plan to other registered retirement vehicles and (e) members’ and spouses’ rights to information concerning their benefits provided by the pension plan.

3. How do these regulations affect Canadian businesses?

These regulations only affect Canadian businesses under federal jurisdiction that choose to establish a pension plan. These regulations require that benefits provided under the pension plan be funded so that the plan can meet certain tests for solvency. Other requirements include what information must be filed annually by the administrators of the pension plans (usually the employer) to enable the Office of the Superintendent of Financial Institutions to determine whether the pension plans are meeting the tests for solvency and are complying with the other aspects of the legislation and regulations. These regulations also set out required notices and pension statements that must be sent by the plan administrator to the plan members and their spouses.

4. What is the timeline for implementation?

These regulations were originally promulgated in 1987 and have been amended several times since. They were last amended in 2011 and further changes have been pre-published in the Canada Gazette (September 2014).

5. Where can I get more information?

For questions regarding the Pension Benefits Standards Regulations, 1985, please contact us.

6. Additional FAQs

Additional FAQs on the Regulations and other pensions related topics can be found at http://www.osfi-bsif.gc.ca/Eng/pp-rr/faq/Pages/default.aspx and are arranged by topic.​