Application Information Requirements

Streamlined Approvals Framework for Targeted New Entrants

Application assessment

The Office of the Superintendent of Financial Institutions (OSFI) gathers and assesses information for all new-entrant applications, including those submitted through the streamlined new-entry framework, to determine whether an applicant meets relevant threshold criteria and to inform its recommendation to the Minister of Finance. OSFI's information requests and baseline expectations are based on the fundamental considerations for the Minister of Finance as set out in legislation. Accordingly, OSFI considers in all new-entry applications, including the streamlined new entry framework, whether the following are adequately addressed, where relevant:

• the applicant has sufficient resources to provide continuing financial support to the proposed federally regulated financial institution (FRFI) or federal credit union (FCU);
• the applicant's business record and experience are appropriate;
• the applicant is of good character and integrity and has a good reputation or, if the applicant is an entity, has a reputation for being operated in a manner that is consistent with the standards of good character and integrity;
• the application does not raise any national security concerns;
• any concerns raised by the application relative to Canada's international relations and international legal obligations are addressed;
• the business plan for the proposed FRFI or FCU is sound and feasible;
• the applicant has adequately assessed the risks to which the proposed FRFI or FCU will be exposed and has satisfied OSFI that it has the capability to implement, prior to the commencement of business by the FRFI or FCU, adequate policies, processes and systems to monitor and mitigate those risks;
• the proposed FRFI or FCU's initial capital will be sufficient to support the business plan and provide adequate protection to depositors and creditors;
• the prospective senior officers and directors of the proposed FRFI or FCU have the necessary experience and competence to fulfil their roles;
• any integration of the applicant's businesses and operations with those of the proposed FRFI or FCU is appropriate for the proposed FRFI;
• any supervisability concerns presented by the ownership structure of the proposed FRFI are addressed;
• any regulatory compliance management or public policy issues raised by the application are addressed;
• the proposed FCU will be organized and carry on business on a cooperative basis; and
• the issuance of the Letters Patent will be in the best interests of the financial system in Canada or of the cooperative financial system in Canada.