The Canadian Institute's 17th Annual
REGULATORY COMPLIANCE
------------------------------------------------------------- for Financial Institutions
Implications of Upcoming Regulations to Canada's Future Fiscal Health in a Global Marketplace
Special Adviser, Promontory Financial Group, Canada ULC
Former Adviser to the Governor, Bank of Canada
The road to economic recovery has not come without significant cost. At present, the consumer debt to income ratio in Canada is an overwhelming 145%. Protecting Canadian consumers by reducing debt is a top government priority. In issuing its new Supervisory Framework, OSFI reports on the signifi cant changes to the risks faced by Federally Regulated Institutions and how they are managed, coupled with developments in international regulation and supervision. This keynote presentation will provide a snapshot of the regulators' plans for FIs in the year ahead and beyond.
- New and anticipated developments from OSFI: Key industry-wide issues and strategies for compliance
- Risk management under the new Supervisory Framework: Operating in the reality of new Basel and IAIS core principles, in addition to required assessment of liquidity for FRIs as a whole
- Understanding and managing the expectations of OSFI in interpreting new regulations to reduce the incidence of sanctions and other penalties
- Compliance lessons learned: Best practices from the past year to ensure continued successes on the path towards bolstering economic growth
- Fine tuning internal policies to meet compliance demands in a timely and cost eff ective manner
- What are the parameters and implications of the 5-year government review anticipated to roll out in 2012?
- Updated outsourcing requirements: How OSFI is administering the regulations and what are the anticipated changes?
Developing and Implementing a Comprehensive AML/ATF Compliance Program
Garry W.G. Clement
President & CEO
Clement Advisory‚ Former Superintendent and National Director‚ Proceeds of Crime‚ RCMP
AML legislation in Canada requires every Reporting Entity to implement a program to ensure compliance. This session will provide you with real-world perspectives, from the viewpoints of both large and smaller FIs. Collect the necessary tools required for developing, implementing and maintaining a compliance framework to suit your needs.
- Guidebook to building a prudent compliance framework:
- Assessing your current capabilities and functionality
- How to identify when an enterprise-wide risk system is too broad to satisfy the wide gamut of compliance directives
- Recruiting qualified staff to properly execute internal policies
- Risk management to reduce the incidence and impact of sanctions:
- Understanding the obligations of FIs, and whether the size of your organization will or should affect protocol and the response from the regulators
- Leading principles in compliance with sanctions regimes
- Update and review of recent administrative monetary penalties levied
- Best practices in administering and executing self-assessments and in dealing with audits
- Developing a tailored metrics process: When should you use consultants to assess and audit the eff ectiveness of your unique AML compliance programs
Facilitating Communication among the Regulators: Question and Answer Session
OSFI
FINTRAC
OPCC
And Others
New Developments from the FCAC
Danielle Lin
Senior Director, Compliance
CIBC
Maureen Bell
Vice President
Compliance CIBC
Lisa Goodfellow
Acting Senior Compliance Officer, Compliance & Enforcement DivisionFCAC
FCAC has recently adopted a more proactive role in supervising compliance by FIs with legislative consumer provisions, and in monitoring adherence to industry voluntary codes of conduct and public commitments. Learn what is on the horizon for FCAC, including guidance in creating your documentation to comply with the amended clear language principles.
- New developments from the FCAC: Forecast for 2011 and beyond
- Negative Option Billing Regulations: Fulfilling your obligations to ensure that products are offered on an opt-in basis only, with suffi cient disclosure to consumers about the terms and conditions prior to acceptance
- Access to Funds Regulations: Ensuring compliance with reduced maximum cheque hold periods, and timelier access to funds deposited by cheque
- Understanding how to navigate the anticipated changes by the FCAC to its regulatory framework
- Discharging your compliance duties through the use of plain language:
- What are the FCAC expectations under the clear language project?
- Clarifying the Clear Language and Presentation Principles and Guidelines
- Practical interpretation of the guidelines to shape your business practices
- Q&A with the FCAC
Good Governance: Solutions for Operational Risk Management
Terry Hall
Partner, Practice Chair Financial Service Group
Cassels Brock & Blackwell LLP
Azaan Jaffer
Principal
Promontory Financial Group Canada ULC
The importance of strong risk governance cannot be understated. In the aftermath of the global market crisis, rigorous risk governance is key to protecting directors and your organization as a whole. This session will provide you with proven strategies to create a structured agenda for risk management and governance. Learn what adjustments must be made in house to seamlessly adapt and meet changes to regulatory and supervisory systems.
- Developing and implementing a cost-effective corporate compliance framework from the ground up:
- Defining levels of authority to expedite corporate decision-making at all stages
- Assessing the essential elements of an Enterprise Resource Planning (ERP) system: What works best?
- Establishing a structure for technology development to manage the challenges of growing software and social media options
- Understanding when to outsource and how to do it effectively
- Selecting staffing and monitoring controls appropriate to the size of the institution
- Tracking and rating program effi ciency: Choosing a metrics system to critically evaluate the successes and failures of your internal structures and guard against penalties for non-compliance
- Managing the Regulators:
- What is the role of examiners?
- What is the scope of an examination?
- Developing procedures to respond effectively to regulatory inquiries and examinations
- Knowing when you must conduct an internal investigation, and who should be involved
- Tools to stay abreast of the latest legislative and procedural changes to remain compliant and be ready for examinations
- How can an investigation be used to the company's best advantage?
CREDIT UNIONS: Breaking through the Shackles of Provincial Boundaries to Nurture Growth and Expansion: Sunrise Seminar
Richard Dale
Director
Regulatory Affairs DICO (Deposit Insurance Corporation of Ontario)
Brigitte Goulard
Vice President
Policy Credit Union Central of Canada
Philippe E. Sarfati
Chief Risk Officer
Coast Capital Savings
Philippe E. Sarfati
Chief Risk Officer
Coast Capital Savings
Credit unions are on the precipice of entering the federal arena with the proposed changes to the Bank Act. Get the necessary tools to leverage opportunities available under the federal charter option and compete with other FIs in the Canadian market.
- Taking advantage of the significant opportunities available under the federal charter option:
- Update on the status of the proposed amendments to the Bank Act
- Teasing out key governance issues, including organization, membership, issuance of shares, and others
- Incorporation or continuance for Federal credit unions: Conducting a risk/benefit analysis to make an informed choice
- New developments from the CUCC:
- Policy priority update: Advocacy and direct engagement initiatives as part of the Crown Financial Institution Strategy
- Increasing your CSR profile through the Credit Union social responsibility InfoHub
- Best practices: Keeping pace with the Big 5, while operating within the realities of smaller organizations
- Reaping the rewards of customer satisfaction and retention by adherence to the voluntary code of practices
- Knowing when to ask for help: Assistance with stabilization and supervision to face financial and other difficulties head on
- Establishing an internal check-list for painless audits
- Case Study: Developing a sustainable business model for continued growth at the community level and advancements in lending to small and medium-sized businesses - Tracking the recent record growth of Coast Capital Savings
- Q&A with the Panelists
Analyzing the Effect on Canadian FIs of New International Legislative Compliance Requirements
By the time the Foreign Accounts Tax Compliance Act provisions take effect in January 2013, every foreign financial institution must enter into an information-sharing agreement with the IRS. How will FATCA and other international legislative initiatives aff ect Canadian FIs? In this session, you will learn what changes to make to your internal processes and the technology needed to stay compliant.
Key International Statutes: Discharging Compliance Obligations
- What is on the horizon for regulatory compliance for FIs across international borders?
Key International Statutes: Discharging Compliance Obligations
Peter Dent
Partner, National Practice Leader, Forensic & Dispute Services
Financial Advisory, Deloitte & Touche LLP
James Klotz
Partner
Miller Thomson LLP
- Dodd-Frank Act: Gauging the effect on Canadian institutions of this omnibus financial reform law
- Overview of the legislative provisions
- Guarding against the potential for increased power by the SEC to reach across borders
- Challenging the ban on references to credit ratings to facilitate the adoption of Basel III, the new international capital and liquidity standards
- Monitoring the increasing presence of Canadian FIs in the U.S. market: What are the hallmarks of a successful and compliant entry into the U.S.?
- Comparison of domestic and foreign anti-bribery/anti-corruption statutes: What do they mean to Canadian regulated entities?
- What are the implications of the move towards relaxation of burdensome elements in the UK Bribery Act?
FATCA: An Overview of the Provisions and the Impact on FIs
Ann Noges
Director, Tax Advisory Group
RBC Taxation, Royal Bank of Canada
John M. Staples
Burt‚ Staples & Maner LLP
- FATCA, the U.S. Foreign Account Tax Compliance Act: How will your business practices be impacted?
- Overview of the requirements under FATCA to set the baseline
- What is the expected scope and effect of the legislation?
- Practical implementation tools and compliance guidelines
- Strategies for compliant client identification: Defining the parameters of the extensive information requirements and knowing what must be disclosed to the IRS to preserve open access to U.S. markets
- The future of FATCA: Lobbying efforts by Canada and internationally to reduce the law's substantial administrative burden
- Managing the impact on smaller banks: What are your options in the reality of insufficient funds or staff to comply?
- Q&A with the Panelists
Transitioning into the New Framework of Capital Adequacy Standards and Managing Liquidity Risk
Blair W. Keefe
Partner
Torys LLP
Rosemary Zigrossi
Director
Promontory Financial Group Canada ULC
Blair W. Keefe
Partner
Torys LLP
Rosemary Zigrossi
Director
Promontory Financial Group Canada ULC
Now that the final text of the Basel III rules has been released, how will the new rules impact mergers and acquisitions and the capital markets activities of Canadian institutions? The new rules require Deposit Taking Institutions to maintain higher minimum levels of capital, to improve the quality of their capital and impose a new leverage constraint, in addition to two new liquidity standards. Learn what is required to remain compliant as the new standards are phased in.
- Reviewing the eff ects of recent trends in capital adequacy, and what is on the horizon from OSFI
- Considering the impact of all non common capital instruments which contain features that
- Understanding the Basel III Framework and how it is designed to raise the level of high-quality capital in the banking system and reduce unstable funding structures:
- Making sense of the Basel Committee's comprehensive quantitative impact study: What is the net take away?
- Overview of the new guidelines, including the provisions for higher and better-quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based requirement, and measures to promote the build up of capital
- Guidelines to operate effi ciently under the two new global liquidity standards
- Where do the transitional arrangements, such as phase-in deductions and grandfathering provisions, fit?
- How is ICAAP (Internal Capital Adequacy Assessment Process) applicable to deposit-taking institutions in light of Basel III?
- What is the scope of the ICAAP?
- Managing the expectations for an institution's ICAAP, with a focus on comprehensive assessment of risk
- Case Study: Step-by-step guide to combating a liquidity crisis
Identifying Emerging Trends and Clearing Compliance Hurdles in the Payment Card Industry
Ted Wilby
Capital One Canada
Senior Director‚ Associate General Counsel
Sharissa Ellyn
Blake Cassels & Graydon LLP
Jeffrey P. Roode
Counsel
Bennett Jones LLP
Ted Wilby
Capital One Canada
Senior Director‚ Associate General Counsel
Sharissa Ellyn
Blake Cassels & Graydon LLP
Jeffrey P. Roode
Counsel
Bennett Jones LLP
The PCI has seen an unprecedented amount of change and uncertainty recently, coupled with a substantially more aggressive regulatory arena. FIs need to respond with a commensurate amount of vigour. This session will provide you with a solid understanding of how the latest developments in this industry will impact your business, and how to effectively meet implementation challenges.
- Adopting risk management strategies and compliance procedures while meeting and exceeding consumer protection obligations
- What to expect from the FCAC
- in monitoring compliance with the Code of Conduct for the Credit and Debit Card Industry; and
- oversight of the Payment Card Networks Act
- Compliance with the Credit Business Practices Regulations & amended Cost of Borrowing Regulations
- Lessons learned from enforcement activities by the FCAC
- How to address FCAC clear & plain language expectations for payment cards
- Influence of the Payments System Task Force on the payment card industry
- Assessing the fall out from the Competition Bureau with respect to Visa and MasterCard
- Leveraging customer information without breaching privacy legislation
- What can be anticipated for future PCI regulation?