It appears that this is a matter of legal form and OSFI has not yet stated that a legal opinion would be needed to confirm the legal effect of the text. However, it is not certain that this type of legal agreement could have a regulatory impact on the reinsurer. The Directive now offers more appropriate flexibility and simply requires that the reinsurance contract provide for a choice of jurisdiction, choice of law and the appointment of agents for the service of legal proceedings necessary to ensure that the contract and all disputes arising therefrom are subject to the laws and courts of a Canadian province. or any other jurisdiction that, in the reasonable discretion of the FRI, has equivalent or greater reliability and security, which are naturally related to the transaction….