Office of the Superintendent of Financial Institutions
For Immediate Release
OTTAWA ─ May 6, 2021 ─ Office of the Superintendent of Financial Institutions
Today the Office of the Superintendent of Financial Institutions (OSFI) released its prudential policy priorities for the next year. This plan builds on lessons and work throughout the COVID-19 pandemic. It sets out clear priorities and timelines to develop policies and guidance that will support continued resilience of banks, insurers and federally regulated private pension plans.
Following the suspension of policy initiatives on
March 13, 2020, OSFI took a prudent and risk-focused approach to relaunching its policy development work. By
September, it was clear that prudential policy development work needed to continue and be adapted to the new normal. At that time, we issued our
first near term plan to provide the industry and stakeholders clarity on our policy direction through to June 2021. Since then, we have delivered on 80% of that plan.
The activities listed in our updated forward policy plan are relevant to our mandate and the institutions we oversee, responsive to risks in an uncertain environment and realistic in both timing and substance to ensure our regulatory framework remains fit for purpose.
While the updated plan contains a number of specific guidance initiatives, three main themes drive our focus over the next year. They are:
Risk management guidance
Next week OSFI will release a letter summarizing feedback from its technology risk discussion paper and setting out future guidance initiatives. A summary of the feedback received on OSFI’s climate risk discussion paper will come out later this year. Additional guidance and consultations on non-financial risks such as operational resilience, cyber risk and culture risk are also planned for the coming year.
Capital and accounting guidance
OSFI’s plan continues to support insurers’ transition to IFRS-17 and implementing the internationally agreed Basel III reforms for banks. This plan also includes the finalizing of capital and liquidity guidance for small and medium size banks that acknowledges the differences in the types and sizes of institutions we oversee.
Federally regulated private pension plans
OSFI continues to establish and refine processes and instructions for private pension plans. OSFI will also issue a discussion paper on investment risk management.
Through these efforts, and continued consultations, we are working to improve the existing regulatory frameworks and thereby further enhance the safety and soundness of Canadian banks, insurers and federal private pension plans.
"These regular updates of our forward policy plans inform stakeholders of our policy directions and, more importantly, engage them in conversations about our work and the most effective ways to preserve financial and operational resilience in the Canadian financial sector."- Ben Gully, Assistant Superintendent, Regulation Sector
"These regular updates of our forward policy plans inform stakeholders of our policy directions and, more importantly, engage them in conversations about our work and the most effective ways to preserve financial and operational resilience in the Canadian financial sector."
- Ben Gully, Assistant Superintendent, Regulation Sector
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.