Office of the Superintendent of Financial Institutions
OSFI is issuing the final guideline on Pillar 3 Disclosure Requirements. This guideline clarifies OSFI’s expectations regarding domestic implementation by federally regulated deposit-taking institutions of the Revised Pillar 3 Disclosure Requirements (revised requirements) issued by the Basel Committee on Banking Supervision in January 2015.
The revised requirements represent Phase I of Pillar 3 disclosure requirements and supersedes the disclosure requirements issued under Basel II (including subsequent Basel II enhancements and revisions) in the areas of credit risk, counterparty credit risk and securitization activities.
The remaining areas with existing disclosure requirements under Basel II and Basel III (i.e., liquidity coverage ratio, leverage ratio, composition of capital, global systemically important banks, remuneration, market risk, operational risk and interest rate risk) continue to be in force until they are addressed at a later date as part of Phase II of the Basel Committee on Banking Supervision’s Pillar 3 disclosure project.
The final version of the Pillar 3 Disclosure Requirements guideline will replace OSFI’s November 2007 Advisory on Pillar 3 Disclosure Requirements and is effective for October 31, 2018. Consistent with OSFI’s August 2016 letter on Pillar 3 Disclosure Requirements, the implementation date gives D-SIBs the time to focus on a high quality implementation of the IFRS 9 Financial Instruments accounting standard and better aligns with the planned implementation dates for peer internationally active banks in other major jurisdictions.
Comments received on the draft guideline were taken into consideration in the drafting of the final guideline. The table in the Annex summarizes material comments received and provides an explanation of how OSFI has addressed the comments. We thank all those who participated in the consultation process.
Questions regarding the final guideline may be addressed to: Ken Leung, Director, Accounting Policy Division at (firstname.lastname@example.org).
Banks and bank holding companies to which the Bank Act applies, federally regulated trust or loan companies to which the Trust and Loan Companies Act applies, and cooperative retail associations to which the Cooperative Credit Associations Act applies are collectively referred to as “deposit-taking institutions”.
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OSFI has clarified the final guideline so that those EDTF disclosures that are covered by Pillar 3 disclosures will follow the reporting frequency specified in the Annex of the OSFI Pillar 3 Disclosure Requirements guideline. D-SIBs are permitted to provide EDTF or Pillar 3 disclosures on a more frequent basis than Pillar 3 requirements should they wish to do so.
D-SIBs should retain those EDTF disclosures that are not covered by Pillar 3 requirements.