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Conflicts of Interest in Financial Services

TC note discusses key issues around conflicts of interest supervision

Toronto Centre note addresses: i) definition of conflicts of interest and why they are important; ii) fiduciary duties and how they "up the ante" on conflicts; iii) psychology about conflicts of interest; iv) how conflicts may arise in context of financial services; v) international regulatory responses; and vi) when supervisors should be alarmed.

Publisher: Toronto Centre     Release date: Dec 2015    

Type: TC Notes

Topics: Corporate governance, Transparency and disclosure

Sectors: Banking, Insurance, Microfinance, Microinsurance, Pensions, Securities

Loan Classification & Loss Provisioning: A Primer

TC note discusses sound internationally accepted banking practices

Toronto Centre note sets out sound internationally accepted banking practices related to loan classification and loss provisioning practices. Intended to assist supervisors to: i) understand what they should expect when carrying out assessments of a bank's loan classification and loan loss provisioning practices; ii) encourage banks to adopt sound risk management practices; and iii) promote consistency in banks' loan classification and provisioning practices. 

Publisher: Toronto Centre     Release date: Dec 2015    

Type: TC Notes

Topics: Asset classification and provisioning, Credit risk

Sectors: Banking

Action Planning Guide

TC note describes Toronto Centre's approach to action planning

Toronto Centre note describes three main stages of action planning: i) assess the problem; ii) develop a solution; and iii) implementation plan. The methodology breaks each main stage down into a number of stages. This paper focuses on steps 1 and 2. 

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Implementing change

Sectors: Banking, Insurance, Microfinance, Microinsurance, Pensions, Securities

Contingency Planning for Bank Resolution and Financial Crises

TC note provides guidance for supervisory agencies in making contingency plans to deal with banking or financial system distress and crisis

Toronto Centre note provides guidance for senior managers of supervisory agencies to make contingency plans to deal with banking or financial system distress and crisis. Addresses contingency planning in context of: i) creating safety nets; ii) determining conditions of banks; iii) strengthening undercapitalized banks; iv) resolving insolvent banks; v) managing and reprivatizing banks under temporary state ownership; and vi) establishing a crisis management unit. 

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Crisis management and contingency planning, Recovery and resolution

Sectors: Banking

Creating an Investor Compensation Fund

TC note reviews factors to be considered when setting up an investor compensation fund

Toronto Centre note discusses: i) objectives of creating an investor compensation fund; ii) factors to consider in determining whether fund should be government- or industry-sponsored; and iii) options for methodologies to levy assessments. 

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Consumer education and protection

Sectors: Securities

Enterprise Risk Management for Insurers

TC note provides broad overview of enterprise risk management from supervisory perspective

Toronto Centre note explains the nature of effective enterprise risk management (ERM) and its role as a critical pillar of corporate governance, and how ERM should be supervised. Supervision of ERM management is a key component of a risk-based supervision framework. Effective supervision of ERM allows supervisors to adopt a principles-based approach. 

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Risk management, Corporate governance, Supervisory framework

Sectors: Insurance

Implementing an Action Plan

TC note provides an overview of issues related to implementation of an action plan

Toronto Centre note addresses the following tasks: i) developing an action plan; ii) selling the plan; iii) establishing the governance structure for plan implementation; iv) creating a working plan; v) managing the project team; and vi) providing for accountability. Also discusses common implementation problems.

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Implementing change

Sectors: Banking, Insurance, Microfinance, Microinsurance, Pensions, Securities

Policyholder Protection Plans

TC note discusses insurance policy protection plans and how to set them up

Toronto Centre note discusses factors that might affect a decision to establish an insurance policyholder protection plan (PPP) from perspectives of various stakeholders, along with steps that can be taken to deal with potential concerns. Addresses significant issues related to coverage, operations, and funding of a policyholder protection plan are identified, and key elements of an action plan to establish a PPP.

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Consumer education and protection, Policyholder protection plans

Sectors: Insurance

Increasing Investor and Shareholder Engagement

TC note provides overview of how supervisors can create plans to maximize investor and shareholder engagement

Toronto Centre note outlines method for supervisors to engage with investors and shareholders: i) assess challenge; ii) develop solution; iii) develop detailed project plan: iv) determine resources; v) define timing and preconditions; vi) evaluate plan; and vii) prepare contingency plan.

Publisher: Toronto Centre     Release date: Oct 2015    

Type: TC Notes

Topics: Supervisory framework

Sectors: Securities

Decision Making

TC note provides framework for better decision-making by supervisors

Toronto Centre note provides framework for improved decision-making by supervisors. Discusses: i) decision-making models; ii) how to choose a decision process; iii) identifying available options; iv) evaluating available options, and choosing and implementing the best option; and v) the relevance of an agency's supervisory strategy in guiding decisions. 

Publisher: Toronto Centre     Release date: Sep 2015    

Type: TC Notes

Topics: Implementing change

Sectors: Banking

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