Canada Regulatory Updates

What Changed

Clarifies classification of deposits as retail funding for favorable liquidity treatment, segmenting partnership deposits by insurance status, transactional account type, and established retail client-NBFI relationships. Combines two proposed categories of retail structured notes into one, aligning their liquidity treatment with term deposits managed by unaffiliated third parties; specifies maturity measurement for autocallable features and triggers for contingent funding obligations. Simplifies the definition of retail rate-sensitive deposits to improve consistency in liquidity risk...

What You Need To Do

• Review and update internal liquidity risk frameworks, models, and reporting to incorporate clarified retail funding classifications (e
• Recalibrate deposit classifications, maturity calculations for autocallable notes, and contingent funding triggers; ensure alignment with OSFI Notes in the guideline and read alongside Guideline B-6
• Conduct gap analyses against prior LAR versions (e
• Institutions should document processes for retail rate-sensitive deposits and notify OSFI if needed (e
• Engage OSFI via Consultations@osfi-bsif

Key Dates

References

• [1] osfi-bsif.gc.ca/en/news/backgrounder-final-liquidity-adeq...
• [2] osfi-bsif.gc.ca/en/guidance/guidance-library/liquidity-ad...
• [3] osfi-bsif.gc.ca/en/news/osfis-quarterly-release-continuin...
• [4] osfi-bsif.gc.ca/en/guidance/guidance-library/liquidity-ad...
• [5] osfi-bsif.gc.ca/en/guidance/guidance-library/consultation...
• [6] osfi-bsif.gc.ca/en/guidance/guidance-library/draft-liquid...
• [7] osfi-bsif.gc.ca/en/guidance/guidance-library/small-medium...
• [8] moodys.com/web/en/us/insights/regulatory-news/osfi-to-rev...