Insurance Journal has learned that the top managers of the Autorité des marchés financiers (AMF) are presently in the midst of their five-year inspection by the International monetary fund (IMF).
The regulator confirmed to Insurance Journal that IMF inspectors have been at the premises for a few days and will remain for several more.
The AMF is not the only regulator the IMF is visiting. The Office of the Superintendent of Financial Institutions (OSFI) and the regulators of three other large Canadian provinces, namely Ontario, Alberta and British Columbia, are also being scrutinized.
Last inspection in 2013
The last time the AMF was inspected by the IMF was in 2013. Every five years, Canada hosts an IMF delegation charged specifically with assessing the main Canadian regulators, including the AMF. It also shares its recommendations and expectations under its Financial Sector Assessment Program.
“The exercise is extremely rigorous,” says AMF spokesperson Sylvain Théberge. “The questions submitted are considerable and complex. This assessment demands an enormous effort on our part.”
Many resulting orientations
In recent years, several AMF orientations have resulted from the IMF inspection, particularly regarding the supervision of MGAs in life insurance, sound business practices for insurers, and supervision of independent representatives.
“We view this assessment by the IMF as an important and necessary exercise because if the AMF performs well in international assessments, this indirectly confirms the robustness of the institutions and the markets that we oversee,” Théberge says. “In addition, the regulator’s good reputation contributes indirectly to reinforcing confidence among retail and institutional investors, along with different actors in the financial and economic ecosystem.”