The Office of the Superintendent of Financial Institutions has issued a couple of new rulings, one dealing with foreign banks, and the other on classes of insurance.

OSFI reviewed an arrangement between a foreign bank (a credit card issuer) and a Canadian financial institution that would see the Canadian institution refer some of its clients to the foreign bank. Under the arrangement, the Canadian bank would advise its clients of the availability of the credit card product, and provide interested clients with brochures outlining the product as well as information on how to contact the bank outside Canada to request the opening of a credit card account.

The regulator concluded that the arrangement would not cause the foreign bank to be engaging in or carrying on business in Canada.

Also, OSFI concluded that insurance that would protect a lender against the risk of loss under a reverse mortgage loan where the borrower is in default falls within the class of “mortgage insurance”, whereas insurance that would protect the lender against the risk of loss where the borrower is not in default falls within the class of “property insurance”.