During OSFI Industry Day on September 5th, OSFI shared that it aims to be more mindful when releasing new and amended guidelines. As a result, some of the timelines set out in the Annual Risk Outlook have been changed or postponed, although OSFI gave no indication which guidelines would be impacted. The organization intends to include guidelines in its quarterly releases that best address current and active risks and will stagger the release of new and amended guidelines to avoid overwhelming the industry.   

OSFI’s Semi-Annual Risk Outlook will be released October 11^th and will provide an update on OSFI’s view of the most immediate risks facing the sector. In the interim, guidelines expected to be discussed in the next quarterly release are as follows:  

• Culture and Behaviour Risk Guideline   

• Liquidity Adequacy Requirements Guideline  

• Mortgage Insurance Capital Adequacy Test (MICAT) Guideline  

• Final revised Life Insurance Capital Adequacy Test (LICAT) Guideline  

The next quarterly release will be released on November 21st.

OSFI also provided an update on its five-year plan to reduce the volume of its regulatory guidelines. While it still aims to reduce the number of guidelines in the future, due to emerging technological, cyber, and third-party risks over the last five years, OSFI found it necessary to release additional guidance to address these risks. OSFI noted that it will be rescinding guidance that is no longer relevant; it will consult with provincial regulators but does not plan to consult the industry as such rescission is expected to result in minimal disruption and risk. Stakeholders can contact OSFI if they require a copy of a rescinded guideline that is no longer available on OSFI’s website. 

If you have any questions or comments, don't hesitate to get in touch with Morgan Paulgaard.