OSFI launches consultation on enhanced assurance expectations
News release - Ottawa -
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Today the Office of the Superintendent of Financial Institutions (OSFI) launched a ten-week consultation with the publication of a discussion paper, Assurance on Capital, Leverage and Liquidity Returns for federally regulated insurers (FRIs) and deposit-taking institutions (DTIs). The paper focuses on enhancing and aligning assurance expectations given the increasing complexity arising from the evolving regulatory reporting framework, particularly changes resulting from International Financial Reporting Standards 17 Insurance Contracts and the Basel III reforms.
Through this consultation, OSFI is seeking to engage FRIs, DTIs, external auditors and other interested stakeholders in a dialogue to enhance existing assurance expectations. OSFI applies a risk-based and principles-based approach to regulation and supervision, and is looking at ways to further improve the consistency, accuracy and timeliness of risk assessments.
OSFI welcomes comments and submissions on the discussion paper to help guide the development of enhanced assurance expectations in a subsequent draft guideline. Submissions should be sent to Assurance@osfi-bsif.gc.ca by June 18, 2021.
Quote
"Continuous improvement, through enhancing and aligning assurance expectations, proactively responds to the evolving regulatory reporting framework. Stakeholder feedback will help shape future guidance to support effective supervision, and contribute to the resilience of the Canadian financial sector."
- Ben Gully, Assistant Superintendent, Regulation Sector
Quick facts
Regulatory capital, leverage and liquidity returns are key contributors to the assessment of safety and soundness of FRIs and DTIs. OSFI proposes to have assurance expectations apply to:
- Capital returns of all federally regulated life insurers, property & casualty insurers and mortgage insurers; and
- Capital, leverage and liquidity returns of all federally regulated DTIs.