The Office of the Superintendent of Financial Institutions has issued a bulletin which establishes criteria for determining whether a transaction with a related party is nominal or immaterial to a life insurance company.

The regulator says that it has prepared a guidance note to clarify the application of the bulletin to a couple of categories of related party transactions.

OSFI notes that life insurance companies should ensure that their internal policies and practices for dealing with related party transactions are consistent with the guidance note.

OSFI says that it intends to initiate a comprehensive review of the issue of related party transactions in the near future, and in consultation with the financial services industry.