Office of the Superintendent of Financial Institutions
The Honourable Chrystia Freeland, P.C., M.P.Minister of Finance
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Finance, 2020
Catalogue No. IN3-32E-PDF
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I am pleased to present to Parliament and Canadians the
2019–20 Departmental Results Report for the Office of the Superintendent of Financial Institutions (OSFI).
This report outlines the work that we have done in support of our mandate, which is to protect depositors, policyholders, financial institution creditors and pension plan beneficiaries while allowing financial institutions to compete and take reasonable risks.
With less than a month before the end of the fiscal year, the COVID-19 pandemic took root and began causing significant disruptions to the operations of federally regulated financial institutions and the economy. At OSFI, our business is to prepare for scenarios that can disrupt the financial system. In the decade that followed the global financial crisis of 2008, we strengthened our regulation and supervision of financial institutions. While this pandemic is an extreme event that has negative consequences for the economy, OSFI was and is prepared to meet the challenges it poses.
For example, March 2020, OSFI responded quickly by unveiling a series of measures to bolster the resiliency of financial institutions and the industry. We provided regulatory flexibility and reduced one of our capital cushions called the Domestic Stability Buffer so that banks could keep lending and the economy could keep working for Canadians. We also paused briefly our policy consultations and other planned initiatives to allow institutions resources to adapt to changing realities of life and work during a pandemic.
Being ready means having a clear plan and last year we publicly released our Strategic Plan. It sets out a framework for our work; provides a vision for the future; confirms our purpose and values; and, it sets clear objectives for us to achieve. As you will see elsewhere in this report, we are meeting the plan’s four goals. We are investing in our people and modern tools for the work they carry out, data management and analytics, and crisis management. We are also working to be more transparent about our work to enhance trust and confidence in the federal sector of the Canadian financial system.
A primary reason for the resilience of our financial sector is the collaboration we undertake with our federal partners – the Department of Finance, the Bank of Canada, the Financial Consumer Agency of Canada and the Canada Deposit Insurance Corporation. We also worked closely with Canada Mortgage and Housing Corporation, provincial counterparts and industry groups. Each of these organizations play a unique and vital role that helps maintain the strength, stability and integrity of the Canadian financial system. They are key partners in the important work OSFI does.
While the COVID-19 pandemic has created significant uncertainty, Canadians can be confident that OSFI is working hard to protect depositors, policyholders, financial institution creditors and pension plan members for both today and tomorrow: preserving confidence, and always improving. Risks are everywhere, but through careful and constant planning and prudent execution of those plans, OSFI is ready for the challenge.
OSFI’s total actual spending for 2019-20 was $193.6 million and the total actual full-time equivalents was 793. When OSFI submitted its 2019-20 Departmental Plan, it was in the process of preparing a new three year strategic plan. The new OSFI
Strategic Plan focused on charting a path for the future, building on the many achievements and learnings of the past. It set the following four goals over the 2019-2022 timeframe:
Goal 1: Federally regulated financial institution and pension plan preparedness and resilience to financial risks is improved, both in normal conditions and in the next financial stress event.
Goal 2: Federally regulated financial institutions and pension plans are better prepared to identify and develop resilience to non-financial risks before they negatively affect their financial condition.
Goal 3: OSFI’s agility and operational effectiveness are improved.
Goal 4: Support from Canadians and cooperation from the financial industry are preserved.
The new Strategic Plan entailed an increase in full-time equivalent employees and an upward revision to OSFI’s budget. As a result of the implementation of the Plan and collective bargained compensation increases greater than those anticipated in the original budget, actual spending in 2019-20 was $28.2 million (or 17.1%) higher than OSFI’s original budget of $165.4 million as per its 2019-20 Departmental Plan. That said, actual spending was $5.5 million (or 2.7%) lower than revised planned expenditures of $199.1 million under the new Strategic Plan; details of the new Strategic Plan have been disclosed in the planning highlights of the 2020-21 Departmental Plan.
In 2019-20, FRFIs experienced challenging business conditions, the headwinds of a flat yield curve and slower economic growth. These were mitigated by a favourable credit environment, which helped sustain profitability and financial stability.
The declaration by the World Health Organization of a global pandemic caused by COVID-19 in March 2020 triggered a global economic shutdown. Business strategies have had to quickly adjust to new remote work environments, with an increased focus on efficiency improvements and reaping benefits from investment in technology. OSFI adapted quickly both internally and externally.
OSFI continues to execute on its mandate through implementation of its Strategic Plan to ensure that financial institutions can withstand severe but plausible risk scenarios that may affect their financial health and the stability of the broader financial system. OSFI introduced a number of measures in response to the COVID-19 pandemic. Notably, it reduced the Domestic Stability Buffer (DSB) to 1% (from 2.25%) to provide systemically important banks with greater lending capacity while at the same time signaling its readiness to lower the DSB further if required. OSFI monitored the economic environment to ensure that any regulatory adjustments followed its principles of being credible, consistent, necessary and fit-for-purpose. OSFI took actions to support the objectives of its federal partners. For example, OSFI supported banks’ access to Bank of Canada funding support by increasing the covered bond limit to 10 % from 5.5 % of bank assets for a one-year period. Furthermore, to enhance financial resilience and stability, OSFI introduced flexibility through capital treatment adjustments for Canadian financial institutions that introduced payment deferral programs. Finally, OSFI suspended all of its consultations and policy development on new or revised guidance to allow institutions to prioritize operational resilience until conditions stabilized.
Other measures taken by OSFI during 2019-20 to support regime effectiveness included the following:
For more information on OSFI’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.
The Office of the Superintendent of Financial Institutions advances a regulatory framework designed to control and manage risk to federally regulated financial institutions and private pension plans and evaluates system-wide or sectoral developments that may have a negative impact on their financial condition. It also supervises financial institutions and pension plans to determine whether they are in sound financial condition and meeting regulatory and supervisory requirements. The Office promptly advises financial institutions and pension plan administrators if there are material deficiencies, and takes corrective measures or requires that they be taken to expeditiously address the situation. It acts to protect the rights and interests of depositors, policyholders, financial institution creditors and pension plan beneficiaries, while having due regard for the need to allow financial institutions to compete effectively and take reasonable risks.
During 2019-20, in support of its mandate, OSFI led a number of initiatives to respond to financial and non-financial risks; these dealt with key areas such as capital, accounting, reinsurance, governance, crisis management, and private pension plans’ supervision.
In an effort to enhance the effectiveness of its capital regime, over the reporting period, OSFI consulted industry on specific elements of its capital adequacy requirements and conducted domestic quantitative impact studies to assess the impact of certain changes (including for International Financial Reporting Standard (IFRS) 17
Insurance Contracts, Segregated Funds requirements and the implementation of Basel III). OSFI improved the monitoring of models of domestic systemically important banks (D-SIBs) by developing an enterprise-wide model risk dashboard, enhanced the assessment of governance and oversight controls for regulatory capital models and leveraged its approval approach for development of a broader model risk assessment framework.
OSFI strengthened its
Liquidity Adequacy Ratio guideline in particular as it pertains to retail deposits that may be subject to sudden withdrawal in a stressed environment. OSFI also engaged industry stakeholders on future capital and liquidity requirements for small and medium-sized deposit-taking institutions. It also revised its liquidity risk management expectations to ensure they are current and relevant as well as appropriate for the scale and complexity of financial institutions. OSFI’s
Liquidity Adequacy Requirements also included the publication of a new Net Stable Funding Ratio measure. OSFI finalized a new large exposure guideline for D-SIBs, which established expectations for the effective measurement and control of risks associated with large exposures at these institutions. Updates to OSFI’s
Interest Rate Risk Management guideline were also completed to reflect changes in market and supervisory practices to be used by institutions for identifying, measuring, managing, monitoring and controlling interest rate risks.
OSFI bolstered resilience in the banking system by raising the level of the DSB twice in 2019, which required banks to build their capital to use when risks materialized. The countercyclical design of the DSB requires banks to build up capital during good times so they can draw down on the buffer in times of economic stress.
In the area of accounting, OSFI consulted industry stakeholders on the Basel Committee on Banking Supervision’s (BCBS) Pillar 3/ phase II and III disclosure requirements in advance of a draft guideline for public consultation. To ensure OSFI maintains effective supervision of FRFIs following the implementation of IFRS 17, work advanced towards the development of an effective regulatory policy framework through the transition. While the International Accounting Standards Board (IASB) eventually announced the deferral of the effective date of IFRS 17 to January 1, 2023, OSFI regularly communicated with, and engaged the industry on implications to accounting guidelines and capital frameworks caused by the standard.
OSFI proposed draft revisions to a guideline on reinsurance (Sound Reinsurance Practices and Procedures) following feedback on a discussion paper. OSFI also reduced inconsistency between registered and unregistered reinsurance in the
2019 Minimum Capital Test guideline.
OSFI improved preparedness for responding to deposit-taking institution crises by developing a framework and playbook based on best practices, recent experiences and simulation exercises.
OSFI deepened its assessment of the impacts of climate-related risks on financial institutions and undertook supervisory practices benchmarking in this area. OSFI contributed to climate risk initiatives by international bodies such as the International Association of Insurance Supervisors (IAIS), the BCBS, the Financial Stability Board (FSB) and the Sustainable Insurance Forum (SIF).
With respect to non-financial risks, OSFI continued to build out its technology risk and culture and conduct risk capabilities. As part of its culture and conduct work, OSFI continued to work closely with the industry to monitor FRFI governance practices and assess whether expectations set out in the
Corporate Governance guideline were achieved. In that regard, OSFI conducted a culture scan with a cross-section of 20 financial institutions to assess culture initiatives, frameworks and processes, and began culture-focused reviews targeting strategic decision making.
As part of its technology risk work, OSFI promoted and shared best practices in cyber risk management with financial institutions. OSFI issued multiple intelligence bulletins and conducted a cyber tabletop exercise with federal government agencies and industry to enhance the Incident Response Protocol.
OSFI also participated in the Operational Resilience Group of the BCBS to develop operational resilience principles for banks. OSFI collaborated with prudential regulators, analyzing operational resilience practices and approaches in other jurisdictions and conducting a study of approaches to regulation and supervision of technology and non-financial risks. A dialogue with industry stakeholders was initiated and a draft discussion paper on technology risk was completed. While the paper was due to be released at the end of March, it, along with all other policy consultations were put on hold due to COVID-19. In addition, OSFI garnered a better understanding of the range of third-party risk management practices at financial institutions by conducting research and a study to help guide future work.
OSFI undertook a survey on the use of artificial intelligence and machine learning (AI/ML) technologies by financial institutions. This work will help build OSFI’s knowledge of AI/ML approaches and challenges and ultimately inform regulatory and supervisory expectations.
OSFI established a new Risk and Data Analytics Division and staffed its new Chief Data Officer role. This division will implement the new enterprise data strategy that provides a long-term roadmap for modernizing the collection, transformation and use of data. This included launching a new technology exploration platform to enable users to trial new data technologies, including the testing of advanced analytical tools and methodologies as well as improving the Regulatory Returns System and related data collection capabilities.
OSFI continued its review of how it supervises the investments of private pension plans. As part of the review, a comparison of OSFI’s approach to supervising pension plan investments and insurance company investments was completed, raising and/or reconfirming challenges relating to the supervision of pension investments. As well, OSFI continued to examine the supervisory approaches taken by international regulatory authorities, and conducted exploratory pension investment examinations of two large plans. The goal of this review, which will continue in 2020-21, is to develop recommendations to enhance OSFI’s principles and risk-based approach to supervising pension plan investments.
In addition, OSFI continued its examination of the defined contribution plans it supervises. An analysis of the results of OSFI’s 2018-19 survey of those plans was completed, with a focus on plan fees and investment options. OSFI has begun to develop recommendations and an action plan based on the observations from this analysis, and will be extending the scope of this project in 2020-21 by participating in a coordinated consultation to obtain feedback from the industry.
OSFI continued to support the Government of Canada’s commitment to innovation. While continuous improvement is generally sought through consultations and lessons learned exercises, where possible, OSFI explored new ways to enhance its efficiency and effectiveness. For example, OSFI undertook to review what and how it communicates to better support transparency and effective messaging to its stakeholders. In addition, OSFI began experimenting with its processes to roll out new guidance faster in an effort to be more agile in regulatory development.
Supervisory ratings are aligned with the risk profile of institutions and range from 0 (normal) to 4 (non-viable/insolvency imminent). Significant increases in ratings, as opposed to progressive ones, can signal issues with the timelines or effectiveness of OSFI supervisory efforts.
Return to footnote 1
Four FRFIs jumped two levels at once due to capital management concerns whereas another moved two levels due to concerns relating to quality / level of capital and controls.
Return to footnote 2
Supervisory ratings are aligned with the risk profile of pension plans and range from 0 (normal) to 4 (non-viable/insolvency imminent). Significant increases in ratings, as opposed to progressive ones, can signal issues with the timelines or effectiveness of OSFI supervisory efforts.
Return to footnote 3
The International Monetary Fund (IMF) conducts its Financial Sector Assessment Program (FSAP) review of OSFI every five years. An FSAP review was conducted in 2018-19. The result from the previous year is carried forward in the year that a review is not conducted.
Return to footnote 4
As a Regulatory Consistency Assessment Programme (RCAP) review is conducted every two years, the result is calculated once every two years. An RCAP review was conducted in 2018-19. The result from the previous year is carried forward in the year that a review is not conducted.
Return to footnote 5
The Office of the Chief Actuary provides a range of actuarial services, including statutory actuarial valuations required by legislation and checks and balances on the future costs of programs for the Canada Pension Plan, Old Age Security, Employment Insurance and Canada Student Loans programs, as well as pension and benefits plans covering the Federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police, federally appointed judges, and Members of Parliament.
In 2019-20, the Office of the Chief Actuary (OCA) continued to provide independent, accurate, high quality and timely actuarial reports and professional actuarial services and advice. With the view of maintaining high quality services, and as recommended by the Canada Pension Plan (CPP) independent peer review panel, the OCA continued to maintain its programs of research on subjects relevant to the preparation of future actuarial reports.
This year, the OCA completed its work on the triennial
CPP Actuarial Report as at December 31, 2018 (30th Report), which was submitted to the Minister of Finance and was tabled in Parliament on December 20, 2019. This triennial report projects CPP revenues and expenditures over a 75-year period in order to assess the future impact of historical and projected demographic and economic trends. The CPP is one of the cornerstones of Canada’s retirement income system and is financed by contribution revenues and investment returns. For the first time, the report covers two parts of the CPP: the base CPP and the additional CPP, which covers the enhancements to the CPP agreed upon by the federal and provincial Ministers of Finance in June 2016 and implemented on January 1, 2019. The OCA also commissioned an independent peer review of this report. This is the eighth review of this kind and the results were released early in fiscal year 2020-21. The independent panel’s findings confirm that the work performed by the OCA on the report meets professional standards of practice and statutory requirements, and that the assumptions and methods used are reasonable. The panel also stated that the report fairly communicates the results of the work performed by the Chief Actuary and her staff.
The legislation following proposals in the 2019 federal budget has enhanced the income exemption for the Guaranteed Income Supplement and Allowance. Following this change in legislation and as required by law, the OCA has prepared the 15th
Actuarial Report Supplementing the Actuarial Report on the Old Age Security Program as at December 31, 2015, which was tabled before Parliament on August 21, 2019. The report finds that the above amendments are projected to increase total OAS program expenditures by $473 million by 2030, which represents an increase of 0.01% of GDP.
This year, as part of its statutory requirements, the OCA completed the
Actuarial Report on the Pension Plan for the Royal Canadian Mounted Police as at March 31, 2018 which was submitted to the President of the Treasury Board and was tabled in Parliament on December 12, 2019. This report provides actuarial information to decision makers, parliamentarians and the public, thereby increasing transparency and confidence in Canada’s retirement income system. The report finds that the annual cost of the plan, borne jointly by contributors and the government, is $521 million for calendar year 2020, which represents 23.2% of pensionable payroll.
Further, the OCA presented to the Canada Insurance Commission the
2020 Actuarial Report on the Employment Insurance Premium Rate, which was tabled in Parliament on December 9, 2019. This report provides the forecast break-even premium rate for the upcoming year and a detailed analysis. The report finds that the 2020 seven-year forecast break-even rate, which is the rate needed to generate just enough premium revenue such that the projected Employment Insurance Operating Account balances out as of December 31, 2026, is 1.6% of insurable earnings.
As part of its ongoing research, the OCA published the
Old Age Security (OAS) Mortality Fact Sheet, which notes that increases in life expectancy were relatively stable between 2004 and 2013 but that between 2014 and 2018 there has been a recent slowing trend in the pace of these increases.
In 2019-20, the OCA also published a fact sheet on
Registered Pension Plans (RPP) and Other Types of Savings Plans in Canada. The fact sheet shows that the number of active RPP members has increased over the last 10 years, with the number of women increasing faster than number of men. Despite this, the number of active RPP members as a percentage of the labour force and as a percentage of employees has slightly decreased. The proportion of active RPP members in DB plans has decreased over the last ten years due to a significant decrease in DB coverage in the private sector.
The Office of the Auditor General (OAG) informed the OCA that it would be using the work that the OCA performed for the Public Accounts of Canada 2019, which were tabled in the House of Commons on December 12, 2019. This included utilizing OCA’s work as independent evidence for the OAG’s audit of the Public Accounts of Canada, specifically for the public sector pension and insurance programs, the Canada Student Loans program and Government Annuities. As part of their audit work, the OAG reviews the methods and assumptions used by the OCA. Comments and recommendations put forward by the OAG in the fall of 2019 on actuarial reports prepared for Public Accounts purposes will be reflected in future actuarial reports, as appropriate.
OSFI continued to support the Government of Canada’s commitment to innovation. Given the OCA’s primary responsibility is to provide actuarial advice including the preparation of actuarial reports for federal government organizations, continuous improvement is generally sought through consultations and lessons learned exercises rather than experimental projects.
The last peer review was conducted in 2017-18. The result from the previous year is carried forward in the year that a review is not conducted. The next peer review will be completed in 2020-21.
Return to footnote 6
Financial, human resources and performance information for OSFI’s Program Inventory is available in
Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are:
In 2019-20, OSFI delivered effective and efficient internal services in support of program delivery, as evidenced by the following key achievements.
In November 2019, four new senior-level governance committees were launched and are supported by a new central Strategic Governance Office. OSFI refined its new strategic planning framework to ensure OSFI’s efforts and resources moving forward are focused and aligned in the achievement of its mandate. Work began to enhance the integration of enterprise risk management into OSFI’s planning process. A review and refresh of OSFI’s performance reporting to senior management was also undertaken. Planning and integration work continued towards the introduction of a new resource management solution. OSFI also implemented phase one of a new application to improve internal financial management oversight.
In response to OSFI’s goal to preserve support from Canadians and cooperation from the financial services industry by being transparent and accountable, OSFI communicated and disclosed information about its plans, programs and activities to Canadians through its website, traditional and social media, public events, speeches and parliamentary appearances. The Executive Committee and senior officials delivered a number of presentations and remarks across Canada and internationally. OSFI engaged regulated entities by organizing and hosting 26 events and presentations, including risk management seminars, colleges of supervisors, crisis management groups and information sessions.
OSFI published its external newsletter
The OSFI Pillar twice in 2019-20. It provides updates and reminders on the latest guidelines, industry notices, public statements and other pertinent information, including feature articles and speeches.
OSFI responded to more than 6,000 correspondence and telephone inquiries and requests for information, including 102 inquiries from members of Parliament; 182 from news media; 39 access to information requests; and 52 access to information consultations from government departments or other governments. OSFI also sought feedback from regulated entities through regular surveys and consultations to identify issues and to improve our performance.
OSFI continued the roll out of its multi-year human capital strategy, which was launched in 2017. The objective of the strategy is to ensure that that its programs, policies and practices are modern and conducive to a productive and inclusive work environment where all employees have the support and tools they need to meet their full potential.
The strategy consists of five priority areas: leadership development; talent management; learning and development; culture and community; and enterprise change management. In 2019-20, activities under each area focused on the expansion of some of the new programs implemented the previous year, and development of new programs. Highlights include:
OSFI has embarked on a transformation journey with the objective of becoming a digital regulator. That journey includes the modernization of its infrastructure and organization, along with digitization of its supervisory and regulatory capabilities. OSFI tabled a new information management and technology strategy in 2019-20 to provide a long-term plan for the continued evolution of IMIT’s people and OSFI’s processes and technology investments. This serves as an umbrella strategy for more specific blueprints that will guide the modernization of OSFI’s internal operations and evolution to digital services. Specific highlights included a refresh of the Office’s computer fleet; infrastructure, application and network upgrades in all four offices; the introduction of Skype for Business; a cloud adoption roadmap with pilot projects; and successful delivery of the first release of a supervisory case management system using an agile project methodology. Other achievements include:
The continued rollout of Skype for Business, user training and significant improvements to the core network capacity (bandwidth) enabled most OSFI staff to transition to a full-time work from home scenario with only minor impacts to overall productivity during the COVID-19 pandemic.
The following graph presents planned (voted and statutory spending) over time.
The graph above presents OSFI’s actual spending from 2017-18 to 2019-20 and planned spending from 2020-21 to 2022-23. Statutory expenditures, which are recovered from respendable revenue, represent over 99% of total expenditures. The remainder, representing less than 1% of OSFI’s spending, is funded from a parliamentary appropriation for actuarial services related to federal public sector pension and benefits plans.
OSFI’s total expenditures, as presented in the 2019-20 Departmental Plan, were expected to decrease by 1.7% in 2019-20 and remain relatively stable the following year. However, OSFI completed a strategic planning exercise after the 2019-20 Departmental Plan was produced. The resulting Strategic Plan entailed increased spending over the 2019-22 horizon, largely driven by an increase in the number of full-time equivalent employees. This was reflected in the 2020-21 Departmental Plan.
The new Strategic Plan resulted in an increase of $33.7 million (or +20.4%) to the original 2019-20 budget; i.e. from $165.4 million to $199.1 million.
OSFI’s 2019-20 actual expenditures of $193.6 million were $28.2 million (or 17.1%) higher than its original plan but $5.5 million (or 2.7%) lower than its revised plan. The variance versus the original plan was driven by the implementation of the Strategic Plan, and compensation increases that exceeded those anticipated when the budget was drawn up (e.g., impacts of new collective agreement and costs related to a Phoenix damages settlement as it relates to current and former employees). These factors also drove the $25.4 million (or 15.1%) increase versus 2018-19 actual expenditures. These variances are consistent across all core responsibility areas and Internal Services.
In 2019-20, OSFI’s full-time equivalents (FTEs) was 38 FTEs or 5.0% higher than planned. The FTE total represents a growth of 7.1% over 2018-19. This is largely due to the staffing of vacant positions and new positions created to address the requirements of the new three-year Strategic Plan for 2019-2022, which was completed after the 2019-20 Departmental Plan was produced. OSFI’s three-year strategic plan reflects and accounts for the continually evolving and increasingly complex environment within which OSFI operates. In order to keep pace with its environment, OSFI’s planned FTEs were increased for the 2019-2022 timeline. Those increases have been reflected in the 2020-21 Departmental Plan.
For information on the OSFI’s organizational voted and statutory expenditures, consult the
Public Accounts of Canada 2019–2020.
Information on the alignment of the OSFI’s spending with the Government of Canada’s spending and activities is available in
OSFI’s financial statements for the year ended March 31, 2020, are available on OSFI’s
The tables below provide highlights from OSFI’s Statement of Financial Position and Statement of Operations, as presented in its audited financial statements prepared in accordance with Public Sector Accounting Standards (PSAS). As such, there are differences between these tables and those presented in other sections of the Departmental Results Report, which are prepared on the appropriation (i.e., modified cash) basis of accounting, in accordance with the Guide to Preparation of Part III of the 2019-20 estimates. Typically, the differences stem from the accounting treatment of capital expenditures.
OSFI is mainly funded through assessments on the financial institutions and private pension plans that it regulates and supervises, and a user-pay program for legislative approvals and selected services. OSFI also receives revenues for cost-recovered services and a small parliamentary appropriation for actuarial services related to federal public sector pension and benefit plans. Overall, on an accrual basis of accounting, OSFI recovered all of its expenses for the year.
In 2019-20, total expenses were $189.8 million (calculated in accordance with PSAS), a $19.4 million or 11.4% increase from the previous year, and $0.2 million lower than planned. The year-over-year increase is due to the creation of positions under OSFI’s new Strategic Plan, the staffing of vacant positions, normal escalation and merit increases and increases in accrued vacation liabilities resulting from the Phoenix Damages settlement.
Total financial assets at the end of 2019-20 were $57.8 million, an increase of $2.7 million from the previous year. The increment is driven by an increase in the Cash Entitlement account as a result of changes in various working capital accounts. The Cash Entitlement account represents the amount that OSFI is entitled to withdraw from the Consolidated Revenue Fund without further authority.
Total financial liabilities were $52.0 million, which was $7.0 million higher than the previous year. The increase is driven by higher accrued salaries and benefits, largely due to the growth in staff complement and increases in accrued vacation liabilities as a result of the Phoenix Damages settlement.
Appropriate minister[s]: Chrystia Freeland
Superintendent: Jeremy Rudin
Ministerial portfolio: Finance
Enabling instrument: Office of the Superintendent of Financial Institutions Act (OSFI Act)
Year of incorporation / commencement: 1987
“Raison d’être, mandate and role: who we are and what we do” is available on the OSFI’s
OSFI’s Departmental Results Framework and Program Inventory of record for 2019–20 are shown below.
The following supplementary information tables are available on OSFI’s
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the
Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in this report are the responsibility of the Minister of Finance.
Office of the Superintendent of Financial Institutions 255 Albert Street Ottawa, Ontario K1A 0H2
Phone: 1-800-385-8647 Fax: 1-613-952-8219 E-mail: