OTTAWA – September 12, 2014 ─ Ottawa, Ontario ─ Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI) today released Guideline E-20 on Canadian Dollar Offered Rate (CDOR) Benchmark-Setting Submissions. The Guideline outlines OSFI’s expectations for the governance and internal controls surrounding the rate submission processes within Canadian banks that are involved in setting the CDOR benchmark rate.
Guideline E-20 is part of an enhanced benchmark oversight framework by Canadian public sector authorities. OSFI’s guideline contributes to the transparency of our regulatory expectations. The understanding and implementation of the principles it contains, along with measures taken by the industry (e.g., a voluntary submitters’ code of conduct and establishing an administrator), contribute to confidence in a strong, stable and competitive financial system.
- OSFI announced earlier this year that it will supervise the governance and controls surrounding banks’ CDOR submission processes.
- A draft version of the Guideline E-20 was issued for public consultation on May 30, 2014.
- Guideline E-20 sets out principles that promote and support strong governance and controls for CDOR submitting banks.
- Submitting banks are expected to implement the principles in the guideline no later than December 31, 2014.
“While there have not been reports that CDOR, or other Canadian financial benchmarks, have been manipulated, OSFI and other domestic regulators are taking action to ensure that confidence in and credibility of this important benchmark is maintained,” said Superintendent Jeremy Rudin.
OSFI – Public Affairs
Created in 1987 by an Act of Parliament, OSFI is the primary regulator and supervisor of federally regulated deposit-taking institutions, insurance companies, and federally regulated private pension plans. OSFI's mandate is to advance and administer a regulatory framework that contributes to public confidence in a strong, stable and competitive financial system.