February 21, 2000

Subject: : Implementation of Support Principle Policy to Replace Requesting Letters of Comfort

Please find enclosed a Guidance Note in respect of OSFI’s implementation of its new Support Principle policy. The policy replaces OSFI’s previous practice of requiring the controlling shareholder of a federally regulated financial institution (FRFI) to provide a letter of comfort at the time it either incorporated or acquired control of a FRFI.

Enquiries regarding this policy and its implementation should be directed to Brian Long, Director, Precedents and Guideline Support, Legislation and Precedents Division, at (613) 990-8838.

This guidance note is available in English and French on OSFI’s Internet site (http://www.osfi-bsif.gc.ca) under the Publications section.

Julie Dickson
Assistant Superintendent
Regulation Sector

Enclosures