TORONTO
,
Oct. 23
/CNW/ - Home Capital Group (TSX: HCG) announced that on
October 21, 2009
the Office of the Superintendent of Financial Institutions ('OSFI') released a Draft Advisory on "Conversion to International Financial Reporting Standards (IFRSs) by Federally Regulated Entities (FREs)". This Draft Advisory addresses the regulatory implications of IFRS conversion on accounting and capital. In particular it contains provisions that would require that Home Trust Company ('Home') include its securitization activities entered into after
December 31, 2009
under the
Canada
Mortgage Bond Program ('CMB') and the National Housing Act Mortgage Backed Security Program ('NHA MBS') within its regulatory asset to capital multiple ('ACM') limit. Previously, as off-balance sheet items under current accounting, CMB and NHA MBS securitizations were not part of the ACM.
Home has carefully analyzed the potential impact of this Draft Advisory as part of its ongoing IFRS conversion program. Home believes that the proposed rules will not materially impact our participation in the CMB and NHA MBS programs, nor affect our ability to continue offering competitive mortgage products which rely on these programs as a source of funding.
Home Capital Group Inc. is a public company, traded on the
Toronto
Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, retail credit and payment card services. Licensed to conduct business across
Canada
, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia and
Quebec
.
For further information: For further information: Gerald M. Soloway, CEO, or Nick Kyprianou, President, (416) 360-4663, www.homecapital.com
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