COVID-19 COVERAGE - CANADA Compiled by Publisher's Staff.1 May 18, 2020
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Thomson Reuters Regulatory Intelligence COVID-19 COVERAGE - CANADA Compiled by Publisher's Staff.1 May 18, 2020 The COVID-19 pandemic has created unprecedented challenges for compliance professionals around the world, including those in Canada. The following is a selection of federal and provincial legislative and regulatory actions as well as news and analysis articles compiled by the Thomson Reuters Regulatory Intelligence editorial staff. The selection includes Regulatory Intelligence and Reuters news coverage. More COVID-19 news and information can be found via the TRRI platform's search facility. Additional COVID-19 resources are also available on the Thomson Reuters COVID-19 Resource Center. For a regularly updated list of U.S. federal regulations related to the COVID-19/novel coronavirus update, please visit the Skopos Labs Coronavirus Policy Tracker. You can create your own custom My Updates through the Create a Custom My Updates link on the Regulatory Intelligence homepage. Select your geography and/or content types you would like resources from and include the following keyword search: covid! or corona- virus. IN THIS OVERVIEW FEDERAL AND PROVINCIAL COVID-19 LEGISLATION AND REGULATIONS Provincial Legislation ➢ COVID-19 Response and Reforms to Modernize Ontario Act, 2020 (Bill 190, 2020) Federal Regulations ➢ Interim Order No. 4 Amending the Employment Insurance Act (Employment Insurance Emergency Response Benefit) FEDERAL AND PROVINCIAL REGULATORS - COVID-19 UPDATES Federal Regulators ➢ Bank of Canada ➢ Office of the Superintendent of Financial Institutions (OSFI) Provincial Regulators ➢ Autorité des Marchés Financiers (Québec) (AMF) ➢ Financial Services Regulatory Authority of Ontario (FSRA) SROS, EXCHANGES AND SECURITIES REGULATORS ➢ British Columbia Securities Commission (BCSC) OTHER NEWS AND SUMMARIES 1 This COVID-19 Coverage was compiled by Thomson Reuters Regulatory Intelligence editorial staff and other contributors. ➢ IMPACT ANALYSIS: Disclosure relief comes with compliance challenges for Canadian issuers ➢ CANADA STOCKS-TSX slides after dismal factory data ➢ Canadian investors shed record level of foreign securities in March COVID-19 COVERAGE - CANADA FEDERAL AND PROVINCIAL COVID-19 LEGISLATION AND REGULATIONS PROVINCIAL LEGISLATION Ontario COVID-19 Response and Reforms to Modernize Ontario Act, 2020 (Bill 190, 2020) (May 12, 2020) Schedule 1 to Bill 190 enacts the Alternative Filing Methods for Business Act, 2020, Act permits documents required or permitted to be filed by in-person delivery or mail under certain business statutes to instead be filed by alternative methods, and permits electronic signatures and electronic copies in respect of certain documents, to address public health and safety concerns in respect of an emergency declared under the Emergency Management and Civil Protection Act, R.S.O. 1990, c. E.9. Schedule 10 to Bill 190 amends the Extra-Provincial Corporations Act, R.S.O. 1990, c. E.27, to permit for electronic signatures on certain documents, to permit for copies of certain documents to be used in place of originals and to accommodate alternative methods of filing under the Alternative Filing Methods for Business Act, 2020. FEDERAL REGULATIONS Interim Order No. 4 Amending the Employment Insurance Act (Employment Insurance Emergency Response Benefit), SOR/2020-95 Under subsection 153.3(1) of the Employment Insurance Act, S.C. 1996, c. 23, the Minister of Employment and Social Development may make interim orders for the purpose of mitigating the economic effects of the coronavirus disease 2019 (COVID-19). Workers may be eligible for the Employment Insurance Emergency Response Benefit if they cease working for reasons related to COVID-19 or they would otherwise have qualified for Employment Insurance (EI) regular or sickness benefits under the normal rules. The Interim Order expands eligibility for the Employment Insurance Emergency Response Benefit to self-employed fishers who recently exhausted EI fishing benefits and are unable to start working for reasons related to COVID-19. The Interim Order is temporary and will cease to have effect when it is repealed or expires. © 2020 Thomson Reuters. All rights reserved. -2- FEDERAL AND PROVINCIAL REGULATORS – COVID-19 UPDATES FEDERAL REGULATORS Bank of Canada Bridge to Recovery: The Bank's COVID-19 Pandemic Response (May 4, 2020) The Bank of Canada published remarks given by Senior Deputy Governor Carolyn A. Wilkins on a C.D. Howe webcast discussing measures the Bank has taken to address the COVID-19 pandemic and set the stage for recovery. For the full text of the remarks see the link here. Office of the Superintendent of Financial Institutions (OSFI) COVID-19 Measures – FAQs for Federally Regulated Deposit-Taking Institutions (updated May 14, 2020) OSFI has prepared an FAQ for federally regulated financial institutions (FRFIs) about measures it has taken to address issues stemming from COVID-19. New or updated topics include: • Payment deferrals • Liquidity • March 30th letter on Capital treatment for exposures acquired through the new Government of Canada programs For the full FAQ document see the link here. COVID-19 Measures – FAQs for Federally Regulated Insurers (updated May 14, 2020) OSFI has prepared an FAQ for federally regulated insurers about measures it has taken to address issues stemming from COVID-19. New or updated topics include: • Loan Payment Deferrals • LICAT Smoothing of Interest Rate Risk (IRR) Requirements for Participating Insurance For the full FAQ document see the link here. PROVINCIAL REGULATORS Autorité des Marchés Financiers (Québec) (AMF) AMF increases support to organizations providing assistance to consumers (May 11, 2020) The AMF has announced that with COVID-19 causing financial hardship for many Québec households, the AMF is substantially increasing the support it provides to various front-line organizations that are dedicated to helping consumers, including seniors. With this additional support, the AMF is more than doubling, to $830,000, the annual amount it is providing to the 37 family economy cooperative associations (Associations coopératives © 2020 Thomson Reuters. All rights reserved. -3- d'économie familiale – ACEFs), Québec's consumer associations and three seniors associations for 2020-2021. The additional contribution is intended to help these community organizations more effectively respond to the growing number of requests for assistance and financial advice from individuals and households in Québec that are struggling to make ends meet. The AMF is also making its financial education expertise and resources available to them as well as tools to facilitate their communications with its target. For more information see the link here. Financial Services Regulatory Authority of Ontario (FSRA) FSRA increases protections for consumers of mortgage-based investments (May 12, 2020) The FSRA made an announcement that it is issuing new guidance to increase protection for consumers involved in mortgage-based investments during periods of market volatility and disruption, such as the current COVID-19 pandemic. The Mortgage Brokerages, Lenders and Administrators Act, 2006 requires specific and timely communications to consumers with respect to changes to their investment values and mortgage terms. Mortgage administrators are required to advise their clients based upon the new guidance. Consumers looking to invest in syndicated mortgage investments (SMI) need to be informed about the impact of significant market disruptions on product risks and suitability. The effective date of the new guidance is May 12, 2020. For more information, including links to the new guidance documents, see the link here. Credit Union Capital Treatment of Loans under the Federal Government Business Credit Availability Program (May 7, 2020) The FSRA has issued a news release stating on March 27, 2020, the Government of Canada launched the Business Credit Availability Program to support small and medium size enterprises through the current economic challenges. This program includes the Canada Emergency Business Account, the Export Development Canada Loan Guarantee, and the Business Development Bank of Canada Co-lending Program. FSRA is releasing interpretation guidance to clarify capital and liquidity requirements for loans under these programs in accordance with the Credit Unions and Caisses Populaires Act, 1994 (CUCPA). For more information see the link here. SROS, EXCHANGES AND SECURITIES REGULATORS British Columbia Securities Commission (BCSC) COVID-19: BCSC Response (BCSC Hearings updated 11 May 2020) The BCSC has updated its "BCSC Hearings" section on its "COVID-19: BCSC Response" page to indicated that the BCSC will not be holding in-person hearings until at least June 15, 2020. The Hearing Office will reach out to parties with hearings scheduled after that time to determine if a hearing may proceed, including via teleconference or in writing. Further, given the current circumstances involving COVID-19, panels presiding over current hearings before the Commission will adopt the direction provided by the Supreme Court of British Columbia for commissioning affidavits in civil proceedings where it is not possible, or medically unsafe, for the deponent of an affidavit to physically attend before a © 2020 Thomson Reuters. All rights reserved. -4- commissioner. For more information, including the link to the direction provided by the B.C. Supreme Court, see the link here. OTHER NEWS AND SUMMARIES IMPACT ANALYSIS: Disclosure relief