Draft Guideline for Derivatives Sound Practices for Federally Regulated Private Pension Plans

Document Properties

  • Type of Publication:   Letter
  • Date: July 31, 2017
  • To: Plan administrators of federally regulated private pension plans

The Office of the Superintendent of Financial Institutions (OSFI) has issued for comment a revised draft derivatives guideline titled Derivatives Sound Practices for Federally Regulated Private Pension Plans (Draft Guideline).  When finalized, the Draft Guideline will replace the 1997 guideline “Derivatives Best Practices” that first outlined expectations for federally regulated private pension plans with respect to derivative activities.

The Draft Guideline builds on the 1997 guideline by reflecting on current practices with respect to the risk management of derivatives activities and covers both exchange traded and over-the-counter (OTC) derivatives.  The Draft Guideline also sets out OSFI’s expectations for plan administrators who invest in derivatives indirectly through various types of funds, including pooled funds and hedge funds. 

Questions and comments on the Draft Guideline should be sent by email to Chris Eccles, Senior Pension Analyst at Christopher.Eccles@osfi-bsif.gc.ca.  A non-attributed summary of the comments received along with OSFI’s responses may be posted on OSFI’s website when the final version of the guideline is released.  Comments should be provided by September 29, 2017.

Yours truly,

 

Tamara DeMos
Managing Director, Private Pension Plans Division