OTTAWA ─ April 20, 2017 ─ Office of the Superintendent of Financial Institutions
Today, the Office of the Superintendent of Financial Institutions (OSFI) released the final version of its guideline, Pillar 3 Disclosure Requirements, following a public consultation process.
This guideline sets out OSFI’s expectations for domestic systemically important banks (D-SIBs) on the domestic implementation of the Revised Pillar 3 Disclosure Requirements, issued by the Basel Committee on Banking Supervision (BCBS) in January 2015. Effective October 31, 2018, this guideline will replace the existing disclosure requirements issued under Basel II (including Basel 2.5 enhancements and revisions) in the areas of credit risk, counterparty credit risk and securitization activities.
The revised requirements mark the first phase of the BCBS’s work on the Pillar 3 disclosure framework, which seeks to promote market discipline through regulatory disclosure requirements. Additional disclosure requirements for Canadian D-SIBs are likely to be introduced at a later date, after the second phase of the BCBS’s Pillar 3 disclosure project comes into effect.
Once the BCBS has completed all phases of its work on Pillar 3, OSFI will determine how the disclosure requirements should apply to other federally regulated deposit-taking institutions, specifically to small and medium size banks, and will ensure that the revised requirements appropriately reflect the nature, size and complexity of those institutions.
“Disclosure is a key tool for decision-making and market discipline. By adopting disclosure practices that are in line with their international peers, Canadian D-SIBs are more inclined to maintain high levels of public confidence”, said Assistant Superintendent Carolyn Rogers.
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
OSFI – Public Affairs