Under the IAA framework, “the capital requirements and risk oversight process in two jurisdictions with similar business, legal, economic and demographic environments and supervisory philosophy and controls should be comparable” (IAA, 2004, p. 9). One cornerstone in the IAA framework, as stated above, is the TBSA. It is also the second key feature in the IAIS’ guidance on regulatory capital requirements (IAIS, 2007d): “A total balance sheet approach should be used to recognise the interdependence between assets, liabilities, regulatory capital requirements and capital resources and to ensure that risks are appropriately recognised.”