Office of the Superintendent of Financial Institutions
For Immediate Release
OTTAWA ─ November 4, 2021 ─ Office of the Superintendent of Financial Institutions
Today, Peter Routledge, the Superintendent of Financial institutions, issued the following statement:
March 2020, the Office of the Superintendent of Financial Institutions (OSFI) set out a series of regulatory and supervisory adjustments to support the financial and operational resilience of federally regulated financial institutions following the onset of the COVID-19 pandemic. Among these measures were temporary expectations that institutions not increase regular dividends, undertake common share repurchases or raise executive compensation. While these measures were prudent and effective over the past year and a half, they are no longer necessary nor fit-for-purpose and are being unwound, as OSFI has already done with other measures put in place in spring 2020 to support the resilience of financial institutions.
Beginning today, institutions may again increase regular dividends and executive compensation. Additionally, subject to the existing requirement for Superintendent approval, they may once again repurchase shares.
As we update our expectations on capital distributions, we continue to expect that Management and Boards of Directors will act responsibly, and employ robust risk management practices and sensitivity analysis that uses conservative and prudent assumptions to guide decisions pertaining to capital distributions. Institutions should continue to assess their resilience to vulnerabilities, including any remaining uncertainty related to COVID-19.”
OSFI’s Frequently Asked Questions for federally regulated
deposit-taking institutions and
OSFI – Media RelationsMedia-Medias@osfi-bsif.gc.ca 343-550-9373