With respect to segregated fund products (also known as variable annuities) and the decision by the Office of the Superintendent of Financial Institutions Canada (OSFI) to decrease the amount of funds required for capital models of these products: (a) why did OSFI decide to change the required amount of capital insurance companies must hold in order to make future payments; (b) what additional investment risks are assumed by Canadian investors as a result of this policy change; (c) has OSFI requested as quid pro quo that senior management of insurance companies reduce the compensation and bonuses they receive until capital requirements are restored to previous levels; and (d) was OSFI lobbied by then President and Chief Executive Officer of Manulife Financial, Mr. Dominic D'Alessandro, to make the decision?
In the House of Commons on May 25th, 2010. See this statement in context.