I was interested to read the following in the IAIS document Insurance Core Principles and Common Framework for the Supervision of Internationally Active Insurance Groups:
17.2.5 Regulatory capital resources protect the interests of policyholders by meeting the following two objectives:
• reducing the probability of insolvency by absorbing losses on a going concern basis or in solvent run-off; and/or
• reducing the loss to policyholders in the event of liquidation or resolution.
17.2.6 The extent to which capital elements (as described in Figure 17.3) achieve the above objectives will vary depending on their characteristics or quality. For example, ordinary share capital may be viewed as achieving both objectives, whereas subordinated debt may be viewed largely as only protecting policyholders in insolvency. Capital resources that achieve both objectives are sometimes termed “core regulatory capital resources” or similar (see Guidance 17.11.37) and capital resources that only reduce the loss to policyholders in liquidation or resolution are generally termed “winding-up capital” or “gone concern capital”. It would be expected that core regulatory capital resources should form the substantial part of capital resources.
I continue to hope to see the day when the banks’ NVCC rules are applied to insurers, as this will reduce the probability of insolvency by absorbing losses on a going concern basis or in solvent run-off.
Oh, and I just noticed this press release from the OSC dated 2024-11-27:
The Ontario Securities Commission (OSC) is announcing it will provide funding of up to $2 million per year, to a total of $11 million, to FAIR Canada (FAIR) – a national charitable organization dedicated to advancing and promoting the interests of individual investors. This new funding arrangement will provide a stable source of funding for FAIR for the next six years.
“FAIR provides an important and independent voice for investors, advocating for their interests on securities policy issues,” said Grant Vingoe, OSC CEO. “This contribution provides a steady and stable source of funding over the next six years to support FAIR with its important work.”
The funding will be provided from sanction and settlement funds held by the Commission in two installments, the first of which will be paid to FAIR immediately, with a second installment provided in 2027. FAIR can only draw a maximum of $2 million per year under the agreement. This funding will be used to support FAIR’s day-to-day operations.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.
Looking at the FAIRCanada website’s “Team” page we find:
Jean-Paul is the Executive Director, President and CEO of FAIR Canada. Prior to joining FAIR Canada in 2020, he was a financial sector expert at the World Bank Group assisting countries to enhance their securities regulatory regimes. He is a former member of the Executive Management Team at the Ontario Securities Commission, where he worked for 20 years in senior leadership and policy roles. He began his legal career at a national law firm advising clients on securities law matters.
and
Pira Kumarasamy brings a wealth of experience in communications, media relations, and strategic social media planning. With a strong background in agency work and consulting, she has led impactful communications projects across various industries. Before joining FAIR Canada, Pira served as Senior Manager, Communications and Public Affairs at The Investment Funds Institute of Canada (now called Securities and Investment Management Association). She has also freelanced as a writer and consultant for fintech and personal finance publications.
and
Prior to joining FAIR Canada, Bruce worked in-house as a lawyer at a Toronto Stock Exchange-listed reporting issuer headquartered in Edmonton. In this role, Bruce’s main responsibilities included corporate finance transactions, public disclosure, public company and subsidiary governance, and corporate reorganizations. During part of his tenure at the organization, he also served as Assistant Corporate Secretary. Bruce began his career at a private firm in Edmonton, where he worked on a variety of corporate and commercial matters. He is a member of the Law Society of Alberta.
So of the four “team” members, one is an ex-OSC honcho and two were employed by elements of the investment industry Family Compact. It’s so nice that the OSC is cutting cheques to ensure their continued employment!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2579 % | 2,396.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2579 % | 4,544.7 |
| Floater | 6.01 % | 6.29 % | 58,227 | 13.43 | 3 | 0.2579 % | 2,619.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5018 % | 3,662.1 |
| SplitShare | 4.77 % | 4.02 % | 70,923 | 3.26 | 5 | -0.5018 % | 4,373.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5018 % | 3,412.3 |
| Perpetual-Premium | 5.87 % | 0.77 % | 77,604 | 0.08 | 7 | -2.9273 % | 2,988.0 |
| Perpetual-Discount | 5.55 % | 5.64 % | 49,405 | 14.42 | 26 | 1.2594 % | 3,373.5 |
| FixedReset Disc | 5.92 % | 6.13 % | 113,119 | 13.50 | 30 | 0.6480 % | 3,020.8 |
| Insurance Straight | 5.49 % | 5.62 % | 56,389 | 14.38 | 21 | 0.8433 % | 3,306.1 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6480 % | 3,593.6 |
| FixedReset Prem | 5.94 % | 5.35 % | 104,195 | 2.30 | 21 | -0.2864 % | 2,610.5 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6480 % | 3,087.9 |
| FixedReset Ins Non | 5.21 % | 5.45 % | 64,565 | 14.39 | 15 | 1.2488 % | 3,074.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| POW.PR.G | Perpetual-Premium | -21.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 19.28 Evaluated at bid price : 19.28 Bid-YTW : 7.39 % |
| NA.PR.K | FixedReset Prem | -9.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 23.28 Evaluated at bid price : 24.90 Bid-YTW : 7.09 % |
| GWO.PR.L | Insurance Straight | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 24.92 Evaluated at bid price : 25.15 Bid-YTW : 5.70 % |
| TD.PF.J | FixedReset Prem | 1.02 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.70 Bid-YTW : 4.70 % |
| PVS.PR.H | SplitShare | 1.04 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 25.20 Bid-YTW : 0.98 % |
| BN.PF.E | FixedReset Disc | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.60 Evaluated at bid price : 21.91 Bid-YTW : 6.14 % |
| ENB.PR.F | FixedReset Disc | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 6.48 % |
| GWO.PR.Y | Insurance Straight | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.65 % |
| MFC.PR.N | FixedReset Ins Non | 1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 22.75 Evaluated at bid price : 23.83 Bid-YTW : 5.40 % |
| SLF.PR.E | Insurance Straight | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 5.34 % |
| FTS.PR.G | FixedReset Disc | 1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 23.01 Evaluated at bid price : 24.00 Bid-YTW : 5.31 % |
| MFC.PR.F | FixedReset Ins Non | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 17.95 Evaluated at bid price : 17.95 Bid-YTW : 5.83 % |
| NA.PR.I | FixedReset Prem | 2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 23.62 Evaluated at bid price : 26.03 Bid-YTW : 5.51 % |
| CU.PR.C | FixedReset Disc | 2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 23.49 Evaluated at bid price : 23.90 Bid-YTW : 5.43 % |
| CU.PR.G | Perpetual-Discount | 2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 20.48 Evaluated at bid price : 20.48 Bid-YTW : 5.52 % |
| PWF.PR.K | Perpetual-Discount | 2.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.97 Evaluated at bid price : 22.20 Bid-YTW : 5.62 % |
| CU.PR.F | Perpetual-Discount | 3.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 20.33 Evaluated at bid price : 20.33 Bid-YTW : 5.56 % |
| SLF.PR.G | FixedReset Ins Non | 3.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 19.07 Evaluated at bid price : 19.07 Bid-YTW : 5.61 % |
| FTS.PR.K | FixedReset Disc | 4.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.77 Evaluated at bid price : 22.05 Bid-YTW : 5.65 % |
| PWF.PR.T | FixedReset Disc | 5.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 23.09 Evaluated at bid price : 24.33 Bid-YTW : 5.38 % |
| MFC.PR.B | Insurance Straight | 5.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.38 Evaluated at bid price : 21.65 Bid-YTW : 5.45 % |
| PWF.PR.S | Perpetual-Discount | 5.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.36 Evaluated at bid price : 21.63 Bid-YTW : 5.59 % |
| GWO.PR.H | Insurance Straight | 10.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.59 % |
| GWO.PR.N | FixedReset Ins Non | 15.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 5.75 % |
| CU.PR.J | Perpetual-Discount | 21.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.37 Evaluated at bid price : 21.37 Bid-YTW : 5.59 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| POW.PR.I | Perpetual-Discount | 69,110 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 24.43 Evaluated at bid price : 24.82 Bid-YTW : 5.71 % |
| RY.PR.N | Perpetual-Discount | 52,415 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 24.70 Evaluated at bid price : 24.98 Bid-YTW : 4.91 % |
| MFC.PR.M | FixedReset Ins Non | 48,750 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 22.99 Evaluated at bid price : 24.33 Bid-YTW : 5.42 % |
| SLF.PR.D | Insurance Straight | 47,950 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.24 Evaluated at bid price : 21.24 Bid-YTW : 5.32 % |
| MFC.PR.B | Insurance Straight | 39,905 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 21.38 Evaluated at bid price : 21.65 Bid-YTW : 5.45 % |
| RY.PR.O | Perpetual-Discount | 37,660 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-21 Maturity Price : 24.69 Evaluated at bid price : 24.97 Bid-YTW : 4.92 % |
| There were 17 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| POW.PR.G | Perpetual-Premium | Quote: 19.28 – 25.17 Spot Rate : 5.8900 Average : 3.1691 YTW SCENARIO |
| NA.PR.K | FixedReset Prem | Quote: 24.90 – 28.00 Spot Rate : 3.1000 Average : 1.9207 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 23.85 – 25.00 Spot Rate : 1.1500 Average : 0.8177 YTW SCENARIO |
| ELF.PR.H | Perpetual-Discount | Quote: 23.98 – 24.70 Spot Rate : 0.7200 Average : 0.4803 YTW SCENARIO |
| NA.PR.S | FixedReset Prem | Quote: 25.79 – 26.39 Spot Rate : 0.6000 Average : 0.3748 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 20.33 – 21.80 Spot Rate : 1.4700 Average : 1.2834 YTW SCENARIO |