Office of the Superintendent of Financial Institutions
OSFI has released the final version of Guideline E-17 – Background
Checks on Directors and Senior Management of FREs, which sets
out principles to assist FREs in the establishment of policies and
procedures to conduct assessments of the suitability and integrity
of their directors and senior management. While FREs already have
varying policies and procedures to assess the suitability and integrity
of their Responsible Persons, this Guideline seeks to ensure that
such practices are sufficiently robust across FREs.
The proposed framework will help ensure that OSFI guidance remains
consistent with international developments. Several international
organizations, including the Basel Committee on Banking Supervision,
the International Association of Insurance Supervisors and the Financial
Action Task Force on Money Laundering, have issued core principles
and recommendations that require directors and senior officers of
financial institutions to be regularly evaluated with respect to
suitability and integrity. These requirements represent an internationally
accepted benchmark of minimum supervisory standards against which
the quality of a country’s prudential supervision system can be
measured and assessed. Regulators in other comparable jurisdictions
have either issued guidance on, or have procedures in place relating
to, the assessment of the suitability and integrity of directors
and senior officers of regulated entities.
This final Guideline includes the following changes from the draft
version posted on May 30, 2007:
There is a one year transition period for compliance with the
final guideline. As such, all FREs are expected to be compliant
by January 31, 2009.
Questions concerning the final guideline should be addressed to
Laural Ross by telephone at (613) 990-6972, by email at firstname.lastname@example.org,
or by facsimile at (613) 998-6716.
This Guideline is available in English and French on OSFI’s Web
under the Publications section. This Guideline may also be obtained
Mr. Stéphane Dupel, General Services Division, by e-mail at email@example.com or by
facsimile at (613) 954-4331.