Card #9

oxalis0217oxalis0217
in OSFI.AA

Hi,

The card is not clear to me, can you please clarify when is AA's MAE report done?

another question related to financial condition report, it says to be done annually, but also when requested by OSFI, what does that mean exactly? AA should produce the financial condition report annually, and especially when requested by OSFI? Can OSFI ask for financial condition report more frequent than annually?

Comments

  • Staff-TSStaff-TS

    I will get to this later today!

  • Staff-TSStaff-TS
    edited March 25

    The AA is required to report in writing to the CEO, CFO, or Chief Agent of the company whenever they identify matters that have a material adverse effect on the financial condition of the company and that require rectification. This is usually provided in addition to the FCT, so I would assume it is done at the same cadency as the FCT if required.

    The Financial Condition Testing (FCT) report must be prepared annually by the AA, following the CIA Standards of Practice. However, OSFI can request an additional FCT report if they deem it necessary.

    This means:

    • The AA must produce an FCT annually as per CIA standards.
    • OSFI can demand more frequent reports if they believe it’s necessary for regulatory oversight.
    • In cases of financial instability, regulatory concerns, or specific risk factors, OSFI might request more frequent FCT submissions to closely monitor the insurer’s financial health​
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