The Office of the Superintendent of Financial Institutions has published a guideline on the role of the independent actuary.

The guideline sets out the responsibilities and duties of the independent actuary in the preparation of a report as required by the Insurance Companies Act or by OSFI for amalgamations, business transfers, purchases and reinsurance not in the ordinary course of business, or in any special situation as required by OSFI.

As a result of recent consultations, this guideline modifies and clarifies OSFI’s position as previously outlined in April 1993 regarding the appointment and the role of the independent actuary and provides guidance on the report and the opinion that are expected.

The guideline provides: additional clarification on the role of the IA; revised criteria and considerations for appointment of the IA; revised definition of the tasks and considerations for the IA; revised list of documents to consider and individuals to consult; additional rules covering the policies other than policies in Canada and timing differences; suggested components to be included in the IA opinion; a declaration of objectivity and the signature rules; and, a review procedure.