Frequently Asked Questions – Regulations - osfi-bsif.gc.ca

These regulations provide a framework for the commercial lending activities that may be undertaken by FRFIs (other than banks). Skiptomaincontent Skiptosecondarymenu FrequentlyAskedQuestions–Regulations PageContent TheFAQsbelowaremeanttoprovideCanadiansandbusinesseswithbasicinformationaboutaselectionofregulationsadministeredbytheOfficeoftheSuperintendentofFinancialInstitutions.Thesetenregulationswereselectedbasedoninquiriesreceived.AlloftheregulationsareavailableontheDepartmentofJusticeWebsite,whichincludesaConsolidatedRegulationswebpagethatlistsregulationsalphabeticallyandaConsolidatedActspagethatliststheActsalphabetically.EachActcontainslinkstoallassociatedregulations. CommercialLoan(CooperativeCreditAssociations)Regulations(SOR/92-356) CommercialLoan(InsuranceCompanies,Societies,InsuranceHoldingCompaniesandForeignCompanies)Regulations(SOR/2001-368) CommercialLoan(TrustandLoanCompanies)RegulationsSOR/92-349) 1.Whatisthepurposeoftheseregulations? Thelegislationgoverningfederallyregulatedfinancialinstitutions(FRFIs)(otherthanbanks)placeslimitsonthesizeoftheircommerciallendingactivities.Theseregulationsprescribecertainelementsinrelationtotheselimits. 2.Whatarethekeyelementsoftheseregulations? Theseregulations(a)establishcriteriaforcertainloansandinvestmentsinorderforthemnottofallwithinthedefinitionofacommercialloan,(b)definewhichsubsidiariesofacompanyareincludedinthecalculationofthe5%oftotalassetslimit,(c)definelendinglimitsforcertaintypesofcompanies,and(d)definetotalassetsusedinthecommerciallendinglimitcalculation. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsprovideaframeworkforthecommerciallendingactivitiesthatmaybeundertakenbyFRFIs(otherthanbanks).FRFIsthataresubjecttolimitsontheircommerciallendingactivitiesareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? TheregulationsapplicabletocooperativecreditassociationsandtrustandloancompaniescameintoforceinJuneof1992.Theregulationsapplicabletoinsurancecompanies,societies,insuranceholdingcompaniesandforeigncompaniescameintoforceinOctoberof2001andwerelastamendedinJanuaryof2010toprescribecommerciallendinglimitsinrespectofforeigncompanies(suchlimitswerepreviouslyspecifiedinthelegislation)andtoaddtheconceptof“marinecompany”.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheCommercialLoanRegulations,pleasecontactus. FinancialLeasingEntityRegulations(SOR/2001-389) 1.Whatisthepurposeoftheseregulations? Theseregulationsdefinethefinancialleasingactivitiesthatfederallyregulatedfinancialinstitutions(FRFIs)mayundertakeeitherdirectlyorthroughafinancialleasingentity. 2.Whatarethekeyelementsoftheseregulations? Theseregulations(a)definecertaintermsusedinthedefinitionof“financialleasingentity”inthelegislation,(b)prescribeactivitiesrelatedtothefinancialleasingofpersonalproperty,and(c)setoutrestrictionsandlimitationsonfinancialleasingactivities. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationslimitthefinancialleasingactivitiesthatmaybeundertakenbyFRFIs.FRFIsareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? TheseregulationscameintoforceinOctoberof2001.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheFinancialLeasingEntityRegulations,pleasecontactus. ForeignBankRepresentativeOfficesRegulations(SOR/92-299) 1.Whatisthepurposeoftheseregulations? Theseregulationssetoutrequirementswithrespecttotheestablishmentandoperationofaforeignbankrepresentativeoffice(FBRO). 2.Whatarethekeyelementsoftheseregulations? Theseregulations:(a)establishtheprocessfortheregistrationofanFBRO;(b)specifytheactivitiesthatanFBROispermittedtoundertake,and;(c)prescribecertainannualrequirementswithrespecttotheoperationofanFBRO. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsonlyapplytoforeignbanksseekingtoregisterandoperatearepresentativeofficeinCanada.AllforeignbanksthatoperateanFBROinCanadaareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? TheseregulationscameintoforceinMayof1992andwerelastamendedinMayof2008toaddressaninconsistencybetweentheFrenchandEnglishversionsandtomakeminorcorrections.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheForeignBankRepresentativeOfficeRegulations,pleasecontactus. InsuranceBusiness(AuthorizedForeignBanks)Regulations(SOR/99-270) InsuranceBusiness(BanksandBankHoldingCompanies)Regulations(SOR/92-330) InsuranceBusiness(CooperativeCreditAssociations)Regulations(SOR/2003-300) InsuranceBusiness(TrustandLoanCompanies)Regulations(SOR/92-331) 1.Whatisthepurposeoftheseregulations? Theseregulationsaddresstheextenttowhichnon-insurancefederallyregulatedfinancialinstitutions(FRFIs)mayundertakethebusinessofinsuranceandtherelationsthattheseentitiesmaymaintainwithinsurancecompanies,agentsandbrokers. 2.Whatarethekeyelementsoftheseregulations? Theseregulationsaddress:(a)theinsurance-relatedactivitiesinwhichnon-insuranceFRFIsmayengage;(b)themannerinwhichtheymayprovide,promoteandsolicitbusinessinconnectionwiththeseactivities,and;(c)thesharingofcertaintypesofinformation(e.g.,customerinformation)withinsurancecompanies,agentsandbrokers. 3.HowdotheseregulationsaffectCanadianbusinesses? Theseregulationsprovideaframeworkfortheinsurance-relatedactivitiesofnon-insuranceFRFIs.FRFIsotherthaninsurancecompaniesareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? Theregulationsapplicabletobanks,bankholdingcompaniesandtrustandloancompaniescameintoforceinJuneof1992.TheregulationsapplicabletoauthorizedforeignbankscameintoforceinJuneof1999.TheregulationsapplicabletocooperativecreditassociationscameintoforceinAugustof2003.AllregulationswerelastamendedinMarchof2012toaddresstheissueofpromotiononawebsite.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheInsuranceBusinessRegulations,pleasecontactus. InvestmentLimits(BankHoldingCompanies)Regulations(SOR/2001-392) InvestmentLimits(Banks)Regulations(SOR/2001-393) InvestmentLimits(CooperativeCreditAssociations)Regulations(SOR/2001-395) InvestmentLimits(CanadianSocieties)Regulations(SOR/2001-394) InvestmentLimits(ForeignCompanies)Regulations(SOR/92-274) InvestmentLimits(InsuranceCompanies)Regulations(SOR/2001-396) InvestmentLimits(InsuranceHoldingCompanies)Regulations(SOR/2001-397) InvestmentLimits(TrustandLoanCompanies)Regulations(SOR/2001-398) 1.Whatisthepurposeoftheseregulations? Theseregulationsprescribecertainelementsregardingrealpropertyandequityinvestmentlimitsestablishedinthelegislationgoverningfederallyregulatedfinancialinstitutions(FRFIs). 2.Whatarethekeyelementsoftheseregulations? Theseregulations:(a)exemptcertainclassesofinstitutionsfromtherealpropertyandequityinvestmentlimits,basedonthesizeoftheinstitution,(b)establishlimitsforrealpropertyandequityinvestmentsaswellasanaggregatelimitand(c)definedirectandindirectinterestsinrealproperty. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsprovideaframeworkforrealpropertyandequityinvestmentsmadebyFRFIs.FRFIsareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? Theregulationsapplicabletobanks,bankholdingcompanies,CanadiansocietiesandtrustandloancompaniescameintoforceinOctoberof2001.TheregulationsapplicabletoforeigncompaniescameintoforceinJuneof1992andwerelastamendedinJanuaryof2010toprescriberealpropertyandequityinvestmentlimitsapplicabletoforeigncompanies(suchlimitswerepreviouslyspecifiedinthelegislation)andtoaddtheconceptof“marinecompany”.Theregulationsapplicabletoinsurancecompanies,insuranceholdingcompaniesandcooperativecreditassociationscameintoforceinOctoberof2001andwerelastamendedinSeptemberof2011toaddressinconsistenciesbetweentheFrenchandtheEnglishversionsortomakeminorcorrections.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheInvestmentLimitsRegulations,pleasecontactus. MinorityInvestment(BankHoldingCompanies)Regulations(SOR/2001-401) MinorityInvestment(Banks)Regulations(SOR/2001-402) MinorityInvestment(CooperativeCreditAssociations)Regulations(SOR/2001-403) MinorityInvestment(InsuranceHoldingCompanies)Regulations(SOR/2001-405) MinorityInvestment(InsuranceCompanies)Regulations(SOR/2001-404) MinorityInvestment(TrustandLoanCompanies)Regulations(SOR/2001-406) 1.Whatisthepurposeoftheseregulations? Theseregulationsprescribecertainelementsregardingtheacquisitionbyfederallyregulatedfinancialinstitutions(FRFIs)ofnon-controllingsubstantialinvestmentsincertainentities. 2.Whatarethekeyelementsoftheseregulations? Theseregulations(a)permitFRFIstoacquirelessthanacontrollinginterestincertainentitiesthattheywouldotherwiseberequiredtocontrol,(b)imposelimitsonsuchinvestments,basedonapercentageoftheirregulatorycapital,and(c)limitthemakingofloanstosuchentities. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsprovideaframeworkisrespectofcertaintypesoftypesofequityinvestmentsmadebyFRFIs.FRFIsareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeRegulations. 4.Whatisthetimelineforimplementation? AllregulationscameintoeffectinOctoberof2001.Theregulationsapplicabletocooperativecreditassociation,insurancecompanies,insuranceholdingcompaniesandtrustandloancompanieswerelastamendedinSeptemberof2011toaddressinconsistenciesbetweentheFrenchandtheEnglishversionsormakeminorcorrections.TheregulationsapplicabletobanksandbankholdingcompanieswerelastamendedinDecemberof2012toextendtheirapplicationtofederalcreditunions.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheMinorityInvestmentRegulations,pleasecontactus. RelatedPartyTransactions(Banks)Regulations(SOR/92-309) RelatedPartyTransactions(CooperativeCreditAssociations)Regulations(SOR/96-275) RelatedPartyTransactions(InsuranceCompanies)Regulations(SOR/96-276) RelatedPartyTransactions(TrustandLoanCompanies)Regulations(SOR/96-277) 1.Whatisthepurposeoftheseregulations? Thelegislationgoverningfederallyregulatedfinancialinstitutions(FRFIs)prohibitstransactionsbetweenaFRFIanditsrelatedparties,otherthantransactionsthatarespecificallypermittedbythelegislationorthatareprescribedinregulations.Theseregulationsprescribepermittedrelatedpartytransactionsnototherwiselistedinthelegislation. 2.Whatarethekeyelementsoftheseregulations? TheseregulationssetoutanumberofrelatedpartytransactionsthatFRFIsmayenterintothatwouldnototherwisebepermitted,includingcertaintaxorsecurities-relatedtransactions. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationspermitFRFIstoenterintoabroaderrangeofrelatedpartytransactionsthanpermittedbythelegislation.FRFIsareexpectedtoestablishpoliciesandprocedureswithrespecttorestrictionsandrequirementsrelatedtorelatedpartytransactions. 4.Whatisthetimelineforimplementation? TheregulationsapplicabletobankscameintoforceinJuneof1992andwerelastamendedinDecemberof2012toextendtheirapplicationtofederalcreditunions.Theregulationsapplicabletocooperativecreditassociations,insurancecompaniesandtrustandloancompaniescameintoforceonMay28,1996. Theregulationsareintheprocessofbeingamendedtobroadenthelistofpermittedrelatedpartytransactions.Industrystakeholderswereconsultedonproposedamendments.Theproposedregulationsareexpectedtobepre-publishedinPartIoftheCanadaGazetteinthefallof2014orwinter2015. 5.WherecanIgetmoreinformation? ForquestionsregardingtheRelatedPartyTransactionsRegulations,pleasecontactus. SpecializedFinancing(BankHoldingCompanies)Regulations(SOR/2001-477) SpecializedFinancing(Banks)Regulations(SOR/2001-428) SpecializedFinancing(ForeignBanks)Regulations(SOR/2001-432) SpecializedFinancing(CooperativeCreditAssociations)Regulations(SOR/2001-427) SpecializedFinancing(RetailAssociations)Regulations(SOR/2001-430) SpecializedFinancing(InsuranceHoldingCompanies)Regulations(SOR/2001-478) SpecializedFinancing(LifeCompanies)Regulations(SOR/2001-429) SpecializedFinancing(TrustandLoanCompanies)Regulations(SOR/2001-431) 1.Whatisthepurposeoftheseregulations? TheseregulationssetouttheframeworkunderwhichFRFIsmayinvestinentitiesthattheywouldnototherwisebepermittedtoacquirebecausetheyundertakeactivitiesthattheFRFIwouldnotbepermittedtoundertake(referredtoas“specializedfinancinginvestments”). 2.Whatarethekeyelementsoftheseregulations? Theregulationsestablishconstraintsthatareimposedonspecializedfinancinginvestments,includingconstraintsregarding:(a)thetypesofactivitiesinwhichsuchentitiesmayengage,(b)thesizeoftheFRFI’sinvestmentinsuchentities,and(c)thelengthoftimethattheFRFIcanholdsuchentities.Theregulationsalsoproviderelieffromcertainapprovalandcontrolrequirementssetoutinthelegislation. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsprovideforabroaderrangeofentitiesinwhichFRFIsmayinvest.FRFIsthatmakespecializedfinancinginvestmentsareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? TheregulationscameintoforceinOctoberof2001.TheregulationsapplicabletoforeignbankswereamendedinMayof2008tosetouttheconditionsunderwhichaforeignbankoranentityassociatedwithaforeignbankcandirectlyengageinspecializedfinancingactivitiesinCanada.Anumberofminortechnicalamendmentshavealsobeenmadetoalltheregulations.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheSpecializedFinancingRegulations,pleasecontactus. SupervisoryInformation(AuthorizedForeignBanks)Regulations(SOR/2001-58) SupervisoryInformation(BankHoldingCompanies)Regulations(SOR/2001-480) SupervisoryInformation(Banks)Regulations(SOR/2001-59) SupervisoryInformation(CooperativeCreditAssociations)Regulations(SOR/2001-57) SupervisoryInformation(InsuranceHoldingCompanies)Regulations(SOR/2001-484) SupervisoryInformation(InsuranceCompanies)Regulations(SOR/2001-56) SupervisoryInformation(TrustandLoanCompanies)Regulations(SOR/2001-55) 1.Whatisthepurposeoftheseregulations? Theseregulationsrestrictthedisclosurebyfederallyregulatedfinancialinstitutions(FRFIs)ofcertaininformation. 2.Whatarethekeyelementsoftheseregulations? TheseregulationsprecludeFRFIsfromdisclosingthetypesofinformationlistedintheRegulations,suchasratingsassignedbytheSuperintendent,stagesofinterventionassignedtotheinstitution,formalordersissuedtotheFRFIandanyinformationrelatedtoannualorspecialexaminationsorothersupervisoryreview.TheRegulationsprovideforlimiteddisclosureunderspecifiedcircumstances,solongastheinformationremainsconfidential. 3.HowdotheseregulationsaffectCanadianbusinesses? Theseregulationsgovernthedisclosureofsupervisoryinformation.FRFIsareexpectedtoestablishpoliciesandprocedurestoensurecompliancewiththeseregulations. 4.Whatisthetimelineforimplementation? TheregulationscameintoforceinNovemberof2001andwerelastamendedinSeptemberof2011toaddressinconsistenciesbetweentheFrenchandtheEnglishversionsortomakeminorcorrections.Nochangestotheexistingregulationsarecurrentlyplanned. 5.WherecanIgetmoreinformation? ForquestionsregardingtheSupervisoryInformationRegulations,pleasecontactus. PensionBenefitsStandardsRegulations,1985(Regulations)SOR/87-19 1.Whatisthepurposeoftheseregulations? Employersgenerallysetuppensionplansvoluntarily;however,onceapensionplanisestablished,itmustbefundedandadministeredincompliancewithapplicablepensionlaws.TheseregulationssetoutdetailsconcerningtheminimumstandardsforfederallyregulatedprivatepensionplansassetoutinthePensionBenefitsStandardsAct,1985.Thesepensionplanscoveremployeesinfederallyregulatedindustriessuchasbanking,telecommunicationsandinterprovincialtransportation. 2.Whatarethekeyelementsoftheseregulations? Theseregulationssetoutrequirementsrelatingtoissuessuchas:(a)theminimumfundingrequirementsforpensionplans,(b)therulessurroundingtheinvestmentofpensionfunds,(c)locking-inandunlockingrequirementsforpensionbenefits,(d)optionsfortransferringpensionbenefitsfromthepensionplantootherregisteredretirementvehiclesand(e)members’andspouses’rightstoinformationconcerningtheirbenefitsprovidedbythepensionplan. 3.HowdotheseregulationsaffectCanadianbusinesses? TheseregulationsonlyaffectCanadianbusinessesunderfederaljurisdictionthatchoosetoestablishapensionplan.Theseregulationsrequirethatbenefitsprovidedunderthepensionplanbefundedsothattheplancanmeetcertaintestsforsolvency.Otherrequirementsincludewhatinformationmustbefiledannuallybytheadministratorsofthepensionplans(usuallytheemployer)toenabletheOfficeoftheSuperintendentofFinancialInstitutionstodeterminewhetherthepensionplansaremeetingthetestsforsolvencyandarecomplyingwiththeotheraspectsofthelegislationandregulations.Theseregulationsalsosetoutrequirednoticesandpensionstatementsthatmustbesentbytheplanadministratortotheplanmembersandtheirspouses. 4.Whatisthetimelineforimplementation? Theseregulationswereoriginallypromulgatedin1987andhavebeenamendedseveraltimessince.Theywerelastamendedin2011andfurtherchangeshavebeenpre-publishedintheCanadaGazette(September2014). 5.WherecanIgetmoreinformation? ForquestionsregardingthePensionBenefitsStandardsRegulations,1985,pleasecontactus. 6.AdditionalFAQs AdditionalFAQsontheRegulationsandotherpensionsrelatedtopicscanbefoundathttp://www.osfi-bsif.gc.ca/Eng/pp-rr/faq/Pages/default.aspxandarearrangedbytopic.​ ​ ModifiedDate: 2014-12-31 Secondarymenu RegulationandGuidance ActsandRegulations Guidance TableofGuidelines TableofAdvisories ApprovalsandPrecedents ApplicationandApprovalGuides RegulatoryandLegislativeAdvisories LegislativeRulings CapitalRulings NameRequest RiskAssessmentandIntervention SupervisoryPractices GuidetoIntervention TrustAgreements RegulatoryData FilingCorporateReturns FilingFinancialReturns ViewingFinancialData Anti-moneyLaunderingandCompliance Anti-moneyLaundering Anti-terrorismFinancing Sanctions Messages IndustryNotices WebTools WhoWeRegulate