Guidelines and regulatory notices
The Office of the Superintendent of Financial Institutions (OSFI) uses a variety of tools to guide and oversee financial institutions in Canada. Two of the most important tools are Guidelines and Regulatory Notices. While they serve different purposes, both help ensure that banks, insurers, and pension plans operate safely and manage risks effectively.
Guidelines: The long-term playbook
OSFI’s Guidelines outline its long-term expectations for financial institutions. These documents are developed through a careful policy process that often includes consultations with industry stakeholders. Guidelines help institutions understand how to manage risks and maintain sound practices over time.
Although Guidelines are not laws, institutions are expected to follow them. OSFI supervisors use them to assess whether an institution is managing risk appropriately. If an institution ignores a guideline, it may face increased scrutiny from OSFI.
Most Guidelines are principles-based, meaning they offer flexibility while promoting consistent and responsible behaviour. In some cases, they include more detailed, prescriptive elements to address specific risks.
In short, Guidelines:
- Set long-term expectations
- Are developed with stakeholder input
- Promote consistency and financial stability
- Are not legally binding, but still carry weight
Regulatory notices: Fast action when risks emerge
When new risks appear quickly—such as a cybersecurity threat or market disruption—OSFI may issue a Regulatory Notice. These notices allow OSFI to respond rapidly without going through a full consultation process.
Regulatory Notices perform a temporary function but set clear expectations for how institutions should respond to specific issues. If the risk becomes a long-term concern, the notice may later evolve into a formal guideline.
In short, Regulatory notices:
- Provide timely guidance on emerging risks
- Do not require consultation
- Are action-oriented and temporary
Together, Guidelines and Regulatory Notices help OSFI maintain strong oversight and protect the resilience of Canada’s financial system. They ensure institutions are prepared for both long-term challenges and short-term disruptions.
For more information, visit OSFI’s Guidance page.