Every year, we update the Memorandum to the Actuary pursuant to section 667.(2) of the Insurance Companies Act. The Memorandum to the Actuary can be found in English and French on the OSFI Web site at:

http://www.osfi-bsif.gc.ca/eng/insurers/life/annual/index.asp
http://www.osfi-bsif.gc.ca/fra/assureurs/vie/annuel/index.asp

The changes made to last year's (2000) Memorandum are indicated by a sidebar located on the right of the lines and strikethrough lines on the deleted parts where modifications were made. We also produced an updated version without indicating the changes.

This year's important changes are:

• Electronic copies of the AAR and DCAT report are now required.
• The changes in assumptions and methods should be split between experience and other special changes.
• CALM replaces PPM and the AA should discuss the treatment of the impact of implementing CALM.
• Any approximation used for the MCCSR should be disclosed.
• The Compliance checklist has been modified to eliminate the VTP reference and now shows current standards.
• The Peer review section is redone with clarification on voluntary review requirements.
• A new section on Index-linked products is added.

Please note that the Actuary's Report and the DCAT Report should be sent to the Accounting and Financial Information Division, in Ottawa.

We also want to remind actuaries of the following:

• All the tables required in the AA Memo have to be filed and submitted with the AA report.
• Given the current low interest rate environment, actuaries should pay special attention to this in setting valuation assumptions and DCAT scenarios.

Should you have any questions, please do not hesitate to contact Jean-Guy Lapointe at (613) 993-9328. A hard copy of this Memorandum can be obtained upon request; please fax your request to Stéphane Dupel at (613) 952-8219.