Streamlined Approvals Framework for Targeted New Entrants

OSFI is modernizing its approach to how specific entities enter the federally regulated financial system through a streamlined framework for targeted new entrants. As new business models and technologies emerge, we’re streamlining and making the path to a federal license quicker, clearer, and more predictable, all while maintaining strong prudential oversight and public confidence in the financial system.

This work supports a more calibrated approach to reviewing new entrant applications. It aligns with broader federal policy direction, including Budget 2025 measures to facilitate federal entry for credit unions, and reflects the evolving nature of Canada’s financial sector.

On this page

• Overview
• Get started
• Related links

Overview

OSFI’s streamlined approvals framework will launch in June 2026 for eligible applicants. The framework is intended to create efficiencies, not shift effort away from other applicants.

Who is included in the framework

This is a targeted, eligibility-based pathway currently offered only to the following entities:

• Provincial credit unions that are seeking continuance as a federal credit union.

• Entities with technologically innovative or emerging banking models – for example, fintechs or crypto-asset custodians – seeking to incorporate as a bank or federally regulated trust and loan company.

Entities outside of the scope of this framework must continue to follow the existing guides and processes.

We will use insights gained through this targeted approach to refine our processes and inform a broader rollout in the future.

What eligible applicants can expect

• A scope that keeps pace with innovation and new business models.
• Right sized, risk-based prudential reviews that provide a more predictable and streamlined path into the federally regulated financial system.
• Clear guidance on requirements, timelines, and review steps.
• Greater transparency, including defined timelines and service commitments.
• A dashboard to help applicants track their progress through the process.
• Continued strong prudential oversight. OSFI will uphold the standards that protect the stability, soundness, integrity, and security of Canada’s financial system
• No changes to application fees. Fees will not be refunded if timelines are not met.

Phases of the Streamlined Process

The framework will continue to have three phases that take applicants from preparation to approval and launch. There will be greater predictability with established timelines between the phases. Timelines will remain subject to dependencies including completeness and quality of submissions, security clearances, and applicant responsiveness.

1. Initial Readiness Assessment (Pre Application)

   • A four week window for OSFI to review pre-application materials submitted by the prospective applicant and provide feedback.
   • Early stage readiness assessment signaling suitability for the streamlined approvals framework.
2. Formal Application Review (Letters Patent)
   • Begins once OSFI confirms the application is complete.
   • Risk based review calibrated to applicant’s business model, complexity and risk profile, without compromising prudential standards.
   • Recommendation to the Minister of Finance for approval of Letters Patent within 12 months.
3. Operational Readiness (Post Ministerial Approval)
   • Confirmation of operational readiness issued with Superintendent’s Order to Commence and Carry on Business within three months of ministerial approval (or aligned with applicants' operational commencement plans).
   • Conditions or restrictions may be applied where residual risks remain, with a defined plan for their removal.

Tools and Guidance for Applicants

OSFI will provide:

• Updated guidance, templates, forms, and checklists, including clearer articulation of baseline expectations for a complete application.

• A public facing dashboard showing application status
• Clearer expectations for each stage of the process

These materials will be available by the time the framework is launched in June 2026.

Get started

The details of the framework are currently being developed. Once the framework launches in June 2026, prospective applicants within the initial scope will be able to contact OSFI to begin the process. Additional guidance and next steps will be available on this page by June. Contact FastTrackApprovals-Approbationsaccelerees@osfi-bsif.gc.ca for any questions.