Save the date for our spring Quarterly Release

Technical advisory - Ottawa - May 12, 2025

We will release our regulatory guidance during spring Quarterly Release Day, May 22, 2025. The regulatory guidance supports critical financial risks as identified by the Annual Risk Outlook.

A virtual Industry Day will be held two weeks later, June 6, 2025, where stakeholders can ask questions or share comments on our initiatives released this quarter.

This new standardized approach makes OSFI’s work more predictable and transparent.

Quarterly Release Day

On May 22, 2025, we will publish:

public consultations on the:
- Internal Liquidity Adequacy Assessment Process (ILAAP) discussion paper
- draft Liquidity Adequacy Requirements (LAR) Guideline
- draft Minimum Capital Test (MCT) Guideline
a policy update:
- Regulatory Notice on Adjustments to the Life Insurance Capital Adequacy Test (LICAT)

All documents will be published on our website.

Quarterly Release Industry Day

Join the Office of the Superintendent of Financial Institutions (OSFI) for our spring Quarterly Release Industry Day!

Event and registration details

Date: Friday, June 6, 2025
Time: 10:00 a.m. – 12:00 p.m. ET
Location: Virtual

The Zoom link will be the same for all sessions, giving you the option to choose which session(s) you attend.

After registering, you will receive an email from support@webcastcanada.ca. This is a confirmation to save to your records. If you do not receive this email, please check your “Junk” folder.

All sessions will be available in both official languages through simultaneous interpretation.

Friday, June 6, detailed agenda

10:00 a.m. – 10:05 a.m.

Opening remarks and logistics

Molly Sweet,
Director,
Stakeholder Affairs

10:05 a.m. – 10:25 a.m.

Consultation on draft Minimum Capital Test (MCT) Guideline (2026)

The Minimum Capital Test (MCT) Guideline ensures property and casualty insurers have adequate capital to meet their obligations and cover potential losses. In this session, we will answer questions about proposed revisions to the MCT Guideline that are aimed at simplifying the unexpired coverage formula for insurance risk; amending the capital treatment of insurance receivables for foreign branches to clarify its scope; and updating capital confirmation requirements for user fees to clarify their timing and application.

Régis Dahany,
Managing Director,
Insurance Capital and Liquidity Standards

10:25 a.m. – 10:40 a.m.

Regulatory Notice on Adjustments to the Life Insurance Capital Adequacy Test (LICAT) (2025)

Our LICAT Guideline helps us assess an insurer’s financial resilience, and, in doing so, helps supervise these institutions effectively. We want to ensure we are giving insurers timely and clear guidance. In this session, we will answer your questions about the adjustments to the LICAT Guideline outlined in our Regulatory Notice published on May 22, 2025. These adjustments, which take effect immediately, include removing the limit applicable to the reduction in Tier 1 capital deductions for stop-loss reinsurance arrangements and aligning the capital treatment of unregistered reinsurance of segregated fund guarantees with other products.

Régis Dahany,
Managing Director,
Insurance Capital and Liquidity Standards

10:40 a.m. – 11:30 a.m.

Consultation on the Liquidity Adequacy Requirements (LAR) Guideline

Consultation on the Internal Liquidity Adequacy Assessment Process (ILAAP) discussion paper

Financial institutions require strong internal liquidity management to navigate emerging risks and maintain stability in times of stress and as financial markets continue to evolve. In this session, we will discuss our public consultation and proposed changes to the draft LAR Guideline (2026) to better reflect emerging funding sources. We are proposing new funding categories to better reflect liquidity risks from products such as structured notes and deposits sourced through non-bank financial intermediaries. Currently some products straddle the line between retail and wholesale classifications. These changes are aimed at clarifying the regulatory treatment of these products to ensure consistency and support institutions’ strategic planning.

We will also discuss our public consultation on an Internal Liquidity Adequacy Assessment Process (ILAAP) discussion paper. We are starting a conversation and sharing ideas and opinion on ways to strengthen the supervisory review process (Pillar 2 liquidity) by examining the role of a potential ILAAP in Canada’s regulatory framework.

Adam Dolson,
Director,
Banking Capital and Liquidity Standards

11:30 a.m. – 12:00 p.m.

Climate Risk Forum: Insights from OSFI’s Standardized Climate Scenario Exercise (SCSE)

Financial institutions and the regulators that oversee them need insights driven by data to be able to better manage climate risk. In 2024, OSFI published a Standardized Climate Scenario Exercise (SCSE). This session will explore lessons learned from the SCSE.

Stephane Tardif,
Managing Director,
Catastrophic Risk

12:00 p.m.

Closing remarks