2018-11-30

Asset Securitization - Guideline (2018)

OSFI has issued this guideline to establish capital treatment requirements for asset securitization transactions across all federally regulated Canadian insurers. The document mandates that insurers hold regulatory capital against securitization exposures based on economic substance, specifying detailed conditions for excluding special purpose entities and traditionally or synthetically securitized assets from capital calculations. It further defines the capital implications for credit enhancements, liquidity facilities, clean-up calls, servicer advances, and implicit support to ensure appropriate risk transfer and capital adequacy.

Canada

Office of the Superintendent of Financial Institutions

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