Office of the Superintendent of Financial Institutions
OSFI acts to protect the rights and interests of depositors, policyholders, financial institution creditors and pension plan beneficiaries while having due regard for the need to allow financial institutions to compete effectively and take reasonable risks. Among other things, OSFI issues guidance for federally regulated financial institutions (FRFIs) and federally regulated pension plans (FRPPs) that sets prudential expectations for their management and mitigation of risk.
Strategic Plan focuses on improving FRFI and FRPP preparedness and resilience to financial risks both now and in the next stress event, and preparing them to deal with non-financial risks before they negatively affect their financial condition. OSFI also aims to improve its agility and operational effectiveness and preserve the support of Canadians and the financial industry.
In support of the
Strategic Plan, this document sets out, a near-term plan of guidance priorities for FRFIs and FRPPs for the next year until March 31, 2022, the references below reflect the calendar quarters for this time period.
Guidance forms a key component of OSFI’s regulatory framework. It establishes OSFI’s expectations in terms of prudential limits, capital and liquidity adequacy, disclosures, legislative and reporting requirements, and sound risk management practices.
OSFI guidance may take a number of forms, depending on the circumstances and objectives.
Guidelines for FRFIs set OSFI’s main expectations, and are principles-based and proportionate to FRFIs of different size, complexity and risk profile. In the case of FRPPs, OSFI’s guidelines typically provide clarity on rules and requirements set out in legislation and regulation. OSFI uses
Rulings (for FRFIs) or
Newsletters (for FRPPs) to clarify existing legislation or expectations in guidelines, or bridge a transition to more enduring guidance. From time-to-time, as required, OSFI also issues
Letters that highlight timely issues or concerns and articulate OSFI expectations.
OSFI has divided its guidance priorities into four streams
Risk Management Guidance for FRFIs and FRPPs,
Risk Management Guidance for FRFIs, Capital and Accounting Guidance for FRFIs and
Guidance for FRPPs.
During the coming year we will continue delivering on OSFI’s mandate by designing and setting policy priorities that reflect the risk environment as well as meeting our operational responsibilities in private pension plans and regulatory approvals. Our plan is centered on the need to be relevant, responsive and realistic. While conditions have become more stable, risks and uncertainty remain in the financial sector. We are planning for the new business-as-usual, but in all cases remain vigilant so that our prudential priorities continue to ensure that Canada’s financial system remains strong and resilient.
The timelines indicated below are reflective of the current OSFI strategic plans. Plans may be subject to change or amended due to external factors. In that event, OSFI will reconsider the dates for the guidance impacted.