Backgrounder: Guide to Administrative Monetary Penalties (AMPs)

Overview

On September 11, 2025, the Office of the Superintendent of Financial Institutions (OSFI) issued a letter to industry on our revised approach to Administrative Monetary Penalties (AMPs). To support this revised approach, OSFI published the Guide to AMPs. The guide provides an overview of the legislative framework and the AMP assessment process, bringing together information in one document. It includes clear instructions on how penalties are assessed and applied, the factors OSFI considers when determining penalties, and the processes institutions can expect.

AMPs are one of OSFI’s supervisory tools, used to reinforce accountability and encourage compliance by federally regulated financial institutions with their governing statutes. Under the revised approach, OSFI will apply AMPs more frequently, including at lower levels of contravention and higher penalty amounts (within the legislative maximums), to deter noncompliance early and strengthen governance practices.

Why it’s important

This guide is important because it improves regulatory efficiency and increases transparency about OSFI’s AMP assessment process. By clearly outlining the factors the Superintendent considers when assessing penalties, it helps institutions strengthen their governance practices. The practical information it provides also supports smoother regulatory interactions by reducing uncertainty and helping institutions navigate the AMP process more confidently and effectively. In doing so, the guide promotes fair, consistent, and predictable oversight across the industry.

Next steps

When OSFI assesses that a breach has occurred, a Notice of Violation is issued outlining the violation, the proposed penalty, and the right to respond. The institution may pay the penalty, which ends the matter, or make representations, which OSFI reviews before deciding whether a violation occurred and what penalty, if any, to impose. If the institution does neither, they are deemed to have committed the violation, and OSFI may still impose a penalty. OSFI then issues a final Notice of Decision, which includes the outcome and information about any right to appeal.

When setting the penalty, OSFI considers intention or negligence, the harm caused, and any history of prior violations. OSFI does not publish information about institutions that receive AMPs, as per section 22 of the OSFI Act. This does not change under the revised approach regarding AMPs.