Here is the lates development in OSFI, The Office of the Superintendent of Financial Institutions (OSFI) has issued its latest quarterly update, highlighting major regulatory initiatives focused on modernizing capital requirements, enhancing supervisory efficiency, and strengthening financial stability across Canada.
The release features consultations on draft guidelines, finalized regulatory standards, and observations from climate-related disclosures — developments that carry implications for both insurers and banks.
OSFI has allowed a 90-day public consultation on its proposed credit risk capital requirements
The proposed revisions aim to better align capital requirements with the actual risks faced by financial institutions, while also creating additional capacity for banks to extend credit and contribute to economic growth. OSFI is encouraging insurers and other financial sector participants to submit feedback during the consultation period.
Taking effect on January 1, 2026, the updated MCT Guideline brings in several key changes for insurers, including streamlined calculations for unexpired coverage, clearer guidance on capital requirements for foreign branches, and updated reporting and attestation standards.
Overall, the revisions are meant to enhance efficiency and promote greater consistency in how capital requirements are applied across property and casualty insurers and other regulated entities.
The Office of the Superintendent of Financial Institutions, continuing its efforts to streamline regulatory oversight, will eliminate an additional 32 documents from its guidance library by December 31. This brings the total number of documents removed over the past 18 months to 52, representing more than 600 pages of material. The consolidation is intended to ease compliance requirements and reduce administrative workload for insurers and banks.
We’ll have to see how the public in Canada responds.
