The Office of the Superintendent of Financial Institutions (OSFI) published its third quarterly release of the year on September 10, 2026, noting that the targeted adjustments made to its guidance were made with a view to supporting a resilient and competitive Canadian financial system.
Increasing Resilience Through Capital Requirements
Capital Adequacy Requirements (CAR) Guideline (2027)
OSFI has published the final CAR Guideline, which will take effect on November 1, 2026. The CAR Guideline reflects feedback received during the consultation OSFI launched in November 2025 to improve the clarity and consistency of capital requirements and their application, better align capital requirements with underlying risks and reduce regulatory burden where possible.
Total Loss Absorbing Capacity
OSFI launched a 60-day consultation on proposed updates to the TLAC Guideline, which remains open until November 9, 2026. The updates clarify OSFI's expectations on the content and frequency of external legal opinions.
Mortgage Insurance Capital
The Mortgage Insurer Capital Adequacy Test (MICAT) 2027 comes into effect on January 1, 2027, implementing changes that are meant to recognize the lower risk profile of certain low-rise multi-unit residential construction projects and better align capital requirements with the underlying risk of the exposure.
Updates Regarding Digital Assets
Capital and Liquidity Treatment of Crypto-asset Exposures
The Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) – Guideline (2027) comes into effect on November 1, 2026, for institutions with a fiscal year ending October 31, and on January 1, 2027, for financial institutions with a fiscal year ending December 31.
Changes to the guideline aim to better align the capital treatment of certain crypto-assets with their underlying risks, and include:
- recognition of certain hedging arrangements across regulated exchanges when calculating capital requirements for Group 2a crypto-assets; and
- exclusion of derivative exposures arising from client-clearing activities from the Group 2 exposure limit calculation.
Tokenized and other Digitally Represented Deposits
OSFI has clarified its technology-neutral stance on permitted business and activities for federal financial institutions, noting that its focus is on what the product or service is and not how it is built or delivered. However, OSFI emphasized that federal financial institutions leveraging innovative technologies must continue to comply with all applicable laws, regulations and guidance.
Other Updates
Interest Rate Risk Management
Changes made to Guideline B-12 – Interest Rate Risk Management update interest rate shock scenarios used to assess exposure and clarify expectations for measurement of the way interest rate changes affect earnings. The updated guideline comes into effect on November 1, 2026, for institutions with a fiscal year ending October 31, and on January 1, 2027, for financial institutions with a fiscal year ending December 31. OSFI plans to finalize the draft amendment to the Pillar 3 Disclosures for interest rate risk guidelines on November 19, 2026
Insurance Regulatory Reporting
Updates to regulatory return templates for federally regulated insurers reflect the International Financial Reporting Standard (IFRS) 18 presentation and disclosure standard but do not change how assets or liabilities are measures. For insurers with a fiscal year ending December 31, the final returns take effect on January 1, 2027. For insurers with a fiscal year ending October 31, they take effect on November 1, 2027.
On September 24, 2026, OSFI will hold a virtual Industry Day to provide the opportunity for stakeholders to ask questions on the above updates. Interested stakeholders can register for OSFI’s Industry Day at this link.
