For D-SIBs, the revised Basel Pillar 3 standard will replace the Basel II disclosure requirements and subsequent improvements and revisions of Basel 2.5. The Basel 2.5 revisions of the Basel II Framework on Market Risks will continue to apply to D-SIBs that choose to retain this information until the market risk information comes into effect under Phase II of the Basel Committee Pillar 3 Information Project. OSFI`s disclosure requirements regarding remuneration, capital composition, global systemically important banks, liquidity coverage ratio and leverage ratio will remain in effect until they are addressed at a later stage of Phase II of the Basel Committee Pillar 3 Disclosure Project. For the information provided by the EDTF covered by the revised Basel Pillar 3 standard, osfi expects D-SIBs to follow the reporting frequency contained in the revised Basel Pillar 3 standard (see Annex). D-SIBs are allowed to provide information on the EDTF more frequently than the Pillar 3 requirements if they choose to do so. Flexible format tables and templates allow D-SIBs to present the required information in a format that better matches the D-SIB, provided that the information provided is comparable to the revised Basel Pillar 3 standard and is at a similar level of granularity to that standard. D-SIBs may disclose tables and templates in flexible formats in a separate document outside of a Pillar 3 report (e.g. B in the management report, in the notes on the financial statements or in supplementary information), but must clearly indicate in the pillar 3 report where the disclosure requirements have been published. Deposit-taking institutions are required to provide information that reflects the above principles. The revised Basel Pillar 3 standard increases the volume and complexity of information to be provided than what was required under Basel II. The full application of the revised Basel Pillar 3 standard does not adequately reflect the nature, size and complexity of non-D SAIs. Non-D ADMINISTRATIONS should continue to apply the Pillar 3 disclosures under Basel II (including subsequent improvements and revisions to Basel 2.5), footnote 7 and OSFI`s Basel III Guidelines (e.B Leverage and Capital Composition) until the OSFIS complete the Basel Pillar 3 Committee`s final disclosure project.

It is important that Canadian D-SIBs continue to maintain a high level of public trust and have public disclosure practices that cover their financial position and risk management activities and are among the best of their international competitors. Footnote 6. According to Basel II, all deposit-taking institutions are required to make the information provided by Pillar 3 publicly available. Unless otherwise required by another authority (p. ex. B accounting standards, securities regulations, etc.), OSFI provides non-SIB organizations with discretion as to the location of information provided by Pillar 3 (e.B.g., annual report, quarterly report, website, etc.). Nevertheless, deposit-taking institutions are encouraged to make all related information available in one place where possible. The information requirements applicable to authorised institutions (IA) are essentially governed by the banking (disclosure) rules (BDR) issued by the Monetary Authority (MA) in accordance with § 60A of the Banking Ordinance. All AIs, with the exception of exempt banks and smaller banks, must comply with disclosure requirements. Module CA-D-1 of the Supervisory Policy Manual (SPM) “Guidelines for the Application of Banking (Disclosure) Rules” provides guidance on the interpretation of certain provisions of the RLO. To make it easier to find information, D-SIBs must provide a reference index that maps tables and models to their specific location. This index must include the title of the template, the name of the referenced document, the specific page number or paragraph referenced, and, if applicable, the web link.

Explanations should be provided in cases where certain tables or models are not disclosed in whole or in part. In order to minimize duplicate disclosures, D-SIBs may remove EDTF disclosures that are actually disclosed by the more detailed models of the revised Basel Pillar 3 standard. D-SIBs should retain information provided by the EDTF that is not covered by the requirements of Pillar 3. OSFI expects D-SIBs and non-SIBs to comply with the revised Basel Pillar 3 disclosure requirements set out in this Policy. Disclosed Pillar 3 information must be subject to a level of internal review and internal control process similar to that provided for its financial report (e.g. B a similar business process used to prepare the information for the management report or annual financial statements). [BCBS January 2015 by 9] Principle 5 – The information to be provided should be comparable between deposit-taking institutions – The level of detail and format of the disclosures to be provided should allow key stakeholders to make meaningful comparisons of business activities, prudential measures, risks and risk management between depository institutions and between jurisdictions. The revised Basel Pillar 3 standard is based on the following five guiding principles, which aim to create a solid basis for transparent and high-quality information that allows users to better understand and compare the activities and risks of an institution. [BCBS Jan 2015 By 12 and 13] OSFI applies disclosure requirements in accordance with the date of transposition of the Directive. The frequency of reporting varies between quarterly, semi-annually and annually, depending on the type of specific disclosure requirement. [BCBS Jan 2015 by 7-8] In exceptional cases, deposit-taking institutions may decide not to disclose certain elements required by Pillar 3 where disclosure may reveal the situation or violate their legal obligations by publishing information of an exclusive or confidential nature. In such exceptional cases, more general information should be provided, as well as an explanation of why certain elements are not disclosed.

[BCBS January 2015 by 11] The Pillar 3 Disclosure Requirements Directive includes the following sections: D-SIBs may continue to use market risk information in accordance with the Basel 2.5 revisions of the Market Risk Framework until Phase II of the BCBS Pillar 3 Disclosure Project comes into effect in Canada. The tables and templates of the revised Basel Pillar 3 standard are designated either as a fixed format or as a flexible format. Fixed form templates are used for quantitative information considered essential to the analysis of an institution`s regulatory capital requirements. Flexible model forms are proposed to obtain information that is considered useful for the market but is not essential to an institution`s regulatory capital adequacy analysis. [BCBS Jan 2015 by 3, 15-19] In accordance with current practice, the content of the information should be adapted to the nature, size and complexity of the institution. In January 2015, the Basel Committee on Banking Supervision (BCBS) published the Revised Pillar 3 StandardFootnote 4 (revised Basel Pillar 3 Standard). The revised Basel Pillar 3 standard aims to address the problems identified by the financial crisis and to improve the comparability and consistency of financial supervision information through more standardised formats between banks and jurisdictions. Shaded rows refer to tables (mainly for qualitative information) (11 in total) and unshaded rows are models (for quantitative information) (29 in total).

However, non-D-SIBs have the right to adopt and disclose any tables or templates of the revised Basel Pillar 3 standard that are relevant to the review of the institution`s risks and activities from the publication of the 2018 financial year. Deposit-taking institutions may choose not to disclose some or all of the information requested in certain tables/models if the exposures and amounts of risk-weighted assets (RWAs) are considered insignificant or equal to zero. [BCBS January 2015 by 15] The information to be provided under Pillar 3 should be publicly available (through .B. on a website) and D-SIBs should have a permanent archive of all information to be provided under Pillar 3 relating to previous reporting periods. D-SIBs are required to ensure public access to information previously published in Pillar 3 for at least 12 months; Where investor information is provided for longer periods, the same archiving period should be used for the disclosure of information under Pillar 3. In addition, AIs are required to use the standard templates specified by the licensing authority in accordance with Articles 6(1)(ab) and 88(1)(b) of the BDR to provide information related to the Basel regulatory standards to promote the relevance, consistency and comparability of information to be provided by users between banks in all jurisdictions. The Annex to this guidance document contains a timeline summarizing the disclosure requirements and whether they are required in a fixed or flexible format. The calendar also indicates the publication frequency associated with each table and template and includes page references to the full revised Basel Pillar 3 standard document. Fixed format templates should be completed for each model in accordance with the instructions prescribed by the Basel Commission and included in a separate Pillar 3 report. If a row or column in a template is not considered relevant or useful to users, D-SIBs can delete the specific row or column while retaining the numbering of subsequent rows or columns for easier reference. In cases where certain rows or columns are excluded because they are not significant, the D-SIB should explain why the information is not relevant or meaningful to users. D-SIBs can also add additional subslines and sub-columns to ensure additional granularity.

B for example to meet other disclosure requirements outside pillar 3. D-SIBs are required to disclose pillar 3 disclosures together with the financial statements. .