Roles & responsibility of AA

mimilau5858mimilau5858
in OSFI.AA

Hi,

what is the difference between item 4 - Financial Condition Report and item 5 - MAE? Do they both use FCT?

Thanks!

Comments

  • Staff-T1Staff-T1

    FCT is the acronym for Financial Condition Report.
    The MAE is used for the AA to report to the board of directors on Material adverse events
    The FCT is used to test if a company can continue operations under solvency and going-concern scenarios (like a stress test)

  • mimilau5858mimilau5858

    OSFI.AA paper says Financial condition report is done with directed by OSFI, but CIA.FCT paper says it is done and reported at least once a year. Putting them together, does this mean that OSFI would ask the insurers to review the financial condition at least once a year?

  • Staff-T1Staff-T1

    yup that's right - I do FCTs once a year

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