Framework overview

Streamlined Approvals Framework for Targeted New Entrants

Overview

The Office of the Superintendent of Financial Institutions (OSFI) is modernizing its approvals process by introducing a streamlined framework for targeted new entrants seeking to establish a new federally regulated financial institution (FRFI).

As the financial landscape evolves – with new types of entrants, more diverse business models and emerging technologies – the approvals process is adapting alongside. The streamlined framework provides a clearer and more predictable pathway to a federal license, supported with defined phases and timelines, and a focused, risk-based review. These enhancements align with rapidly evolving financial services and product offerings while maintaining OSFI’s strong prudential oversight and public confidence in the financial system.

This approach supports earlier entry for applicants where risks can be effectively mitigated at entry using regulatory or supervisory tools, without requiring extended pre-licensing remediation. Following approval, OSFI actively supervises these risks as institutions build and scale.

The streamlined framework 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.

What eligible applicants can expect

This framework establishes a streamlined approvals pathway for eligible entities that are sufficiently prepared to meet applicable requirements from the outset, supported by:

• Right-sized, risk-based prudential reviews 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.
• Enhanced emphasis on credible exit planning for orderly wind‑up when a business model is not viable.
• Entry conditions or restrictions, where appropriate, to manage risk as institutions scale.
• A dashboard that provides visibility and transparency throughout the application lifecycle.
• 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.

Who is eligible

This is a targeted, eligibility-based pathway currently available only to:

• Provincial credit unions (PCU) seeking to continue as a federal credit union (FCU).
• Entities with technologically innovative or emerging banking models – for example, fintechs or crypto-asset custodians – seeking to incorporate or continue as a bank or federally regulated trust and loan company.

Why the scope is limited

This targeted approach allows OSFI to implement the framework in a focused manner. OSFI designed the framework for entities whose business models and risk profiles align with a streamlined path, which is why other types of institutions are not included at this time. Insights gained will be used to refine our processes and inform potential broader application in the future. OSFI reserves the right to limit the number of applications processed under the streamlined framework.