OSFI’s mandate is:

Fostering sound risk management and governance practices

OSFI advances a regulatory framework designed to control and manage risk.

Supervision and early intervention

OSFI supervises federally regulated financial institutions (FRFIs) to determine whether they are in sound financial condition and meeting regulatory and supervisory requirements.

OSFI supervises federally regulated pension plans to determine whether they are meeting regulatory and supervisory requirements, including meeting the minimum funding requirements.

OSFI supervises FRFIs to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security, including foreign interference.

OSFI promptly advises financial institutions and pension plans if there are material deficiencies and takes corrective measures or requires that they be taken to quickly address the situation.

OSFI promptly advises the management and board of directors of a FRFI if their institution does not have adequate policies and procedures to protect itself against threats to its integrity or security and of the corrective measures they need to take to deal with the situation.

Environmental scanning linked to safety and soundness of financial institutions

OSFI monitors and evaluates system-wide or sectoral developments that may have a negative impact on the financial condition of FRFIs.

Taking a balanced approach

OSFI acts to protect the rights and interests of depositors, policyholders, financial institution creditors, and pension plan beneficiaries while allowing financial institutions to compete effectively and take reasonable risks.

OSFI recognizes that management, boards of directors, and pension plan administrators are ultimately responsible for risk decisions and that financial institutions can fail and pension plans can experience financial difficulties resulting in the loss of benefits.

In fulfilling its mandate, OSFI supports the government’s objective of contributing to public confidence in the Canadian financial system.