Pillar 3 Disclosure Guideline for small and medium sized deposit-taking institutions (SMSBs) – Guideline impact analysis statement (2022)

I. Background

OSFI’s Pillar 3 Disclosure Guideline for SMSBs provides requirements for disclosing capital, leverage, and other financial information by SMSBs.

II. Problem Identification

OSFI’s existing Pillar 3 disclosure requirements for SMSBs require revisions as they are not aligned with the new SMSB Capital and Liquidity Requirements Guideline and the disclosure requirements may not appropriately reflect the size, complexity, and risk profile of SMSBs.

III. Objectives

OSFI’s objective is to ensure that the Pillar 3 Disclosure Guideline for SMSBs adheres to OSFI’s proportionality principle that requirements should strike the right balance between improving transparency of disclosure requirements for SMSBs and reducing their complexity to make them fit for purpose.

IV. Consultations

OSFI issued the draft Pillar 3 Disclosure Guideline for SMSBs for public consultation in August 2021. A summary of the material comments received from industry stakeholders and an explanation of how they have been addressed has been published along with the final Guideline.

V. Recommendations

It is recommended that the Pillar 3 Disclosure Guideline for SMSBs be updated to facilitate disclosure requirements that are clear, easy to implement and align with OSFI’s proportionality principles for SMSBs.

VI. Implementation & Evaluation

The implementation date of the final version of the Guideline will be fiscal Q2-2023^{Footnote 1}. OSFI will monitor adherence to the Guideline through its ongoing supervision of institutions.