OSFI Structure and Operations - osfi-bsif.gc.ca

OSFI works closely with its federal financial regulatory partners, including the Department of Finance, the Bank of Canada, the Canada ... 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PageContentTableofContentsAboutusMandateAccountabilityandGovernanceGoverningLegislationWhoOSFIregulatesandsupervisesHowOSFIregulatesandsupervisesCorporateServicesandTransformationSupervisionPolicy,Innovation,andStakeholderAffairsRisk,Strategy,andGovernanceOfficeoftheChiefActuaryAboutusTheOfficeoftheSuperintendentofFinancialInstitutions(OSFI)isanindependentfederalgovernmentagencythatregulatesandsupervisessome400federallyregulatedfinancialinstitutionsand1,200pensionplanstodeterminewhethertheyareinsoundfinancialconditionandmeetingtheirrequirements.MandateFosteringsoundriskmanagementandgovernancepracticesOSFIadvancesaregulatoryframeworkdesignedtocontrolandmanagerisk.SupervisionandearlyinterventionOSFIsupervisesfederallyregulatedfinancialinstitutionsandpensionplanstodeterminewhethertheyareinsoundfinancialconditionandmeetingregulatoryandsupervisoryrequirements.OSFIpromptlyadvisesfinancialinstitutionsandpensionplansiftherearematerialdeficiencies,andtakescorrectivemeasuresorrequiresthattheybetakentoexpeditiouslyaddressthesituation.EnvironmentalscanninglinkedtosafetyandsoundnessoffinancialinstitutionsOSFImonitorsandevaluatessystem-wideorsectoraldevelopmentsthatmayhaveanegativeimpactonthefinancialconditionoffederallyregulatedfinancialinstitutions.TakingabalancedapproachOSFIactstoprotecttherightsandinterestsofdepositors,policyholders,financialinstitutioncreditorsandpensionplanbeneficiarieswhilehavingdueregardfortheneedtoallowfinancialinstitutionstocompeteeffectivelyandtakereasonablerisks.Infulfillingitsmandate,OSFIsupportsthegovernment’sobjectiveofcontributingtopublicconfidenceintheCanadianfinancialsystem.AccountabilityandGovernanceVariousformalandinformalprocessesenableOSFItoexecuteitsmandate.Forexample,theFinancialInstitutionsSupervisoryCommittee,whichtheSuperintendentchairs,meetsonaquarterlybasistofacilitatetheexchangeofinformationrelatingtothesupervisionoffederallyregulatedfinancialinstitutions.MembersincludeOSFI,theDepartmentofFinance,theBankofCanada,theCanadaDepositInsuranceCorporationandtheFinancialConsumerAgencyofCanada.WhiletheDepartmentofFinancereportsdirectlytotheminister,OSFIandtheothersarearm’s-lengthagenciesorCrowncorporations,reportingtoParliamentthroughtheminister.OSFI'saccountabilityframeworkincludes:issuinganannualreportanddepartmentalplansubmittingfinancialstatementsandrelatedcontrolprocessestoanannualexternalauditanexternalauditcommitteeandinternalauditgroupandauditreportsconflictofinterestandcodeofethicspoliciesconsultationswiththefollowingbeforenewrulesarefinalized:financialinstitutions/industryotherrelevantgovernmentagenciessubjectmatterexperts appearingbeforeParliamentarycommitteestoprovideinformationon:topicsofinterestOSFI’sannualreportanddepartmentalplanimportantassessmentsconductingconfidentialsurveysandconsultationswithkeystakeholderstoassessOSFI’sperformanceasasupervisorandregulatoroffederallyregulatedfinancialinstitutionsparticipatinginreviewstodeterminewhetherOSFIismeetinginternationallyestablishedstandardsforprudentialregulators.GoverningLegislationOSFIwasestablishedin1987byanActofParliament:theOfficeoftheSuperintendentofFinancialInstitutionsAct(OSFIAct).OSFIderivesitspowersfrom,andisresponsibleforadministering,thefollowinglegislation:BankActTrustandLoanCompaniesActCooperativeCreditAssociationsActInsuranceCompaniesActPensionBenefitsStandardsAct,1985,andallrelatedregulationsTheseactsandregulationssetouttherulesforthestructureandoperationoffederallyregulatedfinancialinstitutionsandthestandardsforfederallyregulatedprivatepensionplans.Thevariousactsaddresstheuniqueaspectsofthesectorseachgoverns,andaredesignedtobeconsistentwitheachother.MinisterialauthorityOSFIreportstoParliamentthroughtheministerofFinance.AlthoughtheministerofFinanceisresponsibleforOSFI,theSuperintendentissolelyresponsibleforexercisingtheauthoritiesprovidedbythefinancialandpensionlegislation,andmustreporttotheministerfromtimetotimeontheadministrationoflegislationgoverningfinancialinstitutionsandpensionplans.WhoOSFIregulatesandsupervisesOSFIregulatesandsupervisessome400financialinstitutionsandsome1200pensionplansinCanada,includingthefollowing:Deposit-takinginstitutions:banks,including: domesticbanksforeignbanksfull-serviceforeignbankbranches,andforeignbankbranchesthatprovideonlylendingservicestrustcompaniesloancompaniescooperativecreditassociationscooperativeretailassociationsInsurancecompanies:lifeinsurancecompaniesfraternalbenefitsocietiespropertyandcasualtyinsurancecompaniesmortgageinsurancecompaniesPrivatepensionplans:federallyregulatedprivatepensionplansorganizedandadministeredprimarilyforthebenefitofemployeesandformeremployeesoforganizationsunderfederaljurisdiction,suchasbanking,inter-provincialtransportationandtelecommunications.Forafulllistofinstitutionsandpensionplans,visit:WhoWeRegulate.HowOSFIregulatesandsupervisesOSFIregulatesbydevelopingrules,interpretinglegislationandregulationsandprovidingregulatoryapprovalsforcertaintypesoftransactions.Italsocontributestonewaccounting,auditingandactuarialstandards.Allofthismustbalancethegoalsofsafetyandsoundnesswiththeneedforinstitutionstooperatewithinacompetitivemarketplace.OSFIsupervisesbyanalyzingfinancialandeconomictrendstoidentifyemergingissuesthatcouldadverselyaffectinstitutions.Itassessesaninstitution’sfinancialcondition,materialrisksandthequalityofitsgovernance,riskmanagementandcompliance.Whenweaknessesareidentified,OSFIintervenesearlyandworkswithexecutivemanagement,boardsandpensionplanadministratorstocorrectmatters.OSFI’sscopeofregulationandsupervisiondoesnotincludeconsumer-relatedormarketconductissues,northeinvestment/securitiessector.Thesearetheresponsibilityofotherregulatorybodiesoragencies,bothfederalandprovincial.OSFIPartnersOSFIworkscloselywithitsfederalfinancialregulatorypartners,includingtheDepartmentofFinance,theBankofCanada,theCanadaDepositInsuranceCorporationandtheFinancialConsumerAgencyofCanada.Together,theseagenciescollaborateregularlytoshareinformationonmattersrelatingtothesupervisionoffederallyregulatedfinancialinstitutions.Thesepartnersalsomeettodiscussfinancialsectorpolicyissues.OSFIalsoworkswiththeFinancialTransactionsandReportsAnalysisCentreofCanada(FINTRAC),whichisresponsibleforensuringcompliancewithCanada’sProceedsofCrime(moneylaundering)andTerroristfinancingAct.CollaborationandconsultationswithprovincialcounterpartsandindustryinCanadaandabroadarearegularoccurrenceandhelpOSFItounderstandandresolvepotentialissues.InternationalactivitiesInternationalorganizationssuchastheFinancialStabilityBoard,theBaselCommitteeonBankingSupervisionandtheInternationalAssociationofInsuranceSupervisorsplayakeyroleinthedevelopmentofregulatoryframeworksforbanksandinsurersthatcontributetoastrongandstableglobalfinancialsystem.OSFIhasearnedastronginternationalreputationthroughitsactiveparticipationinsuchinternationalorganizations,whichallowittoshareCanadianperspectivesandhelpshapeinternationalrulesetting.StructureOSFIemployssome800peopleinofficeslocatedinOttawa,Montreal,TorontoandVancouver.Itisorganizedintosevenmainsectors:Superintendent’sOfficeInternalAuditCorporateServicesandTransformationSupervisionPolicy,Innovation,andStakeholderAffairsRisk,Strategy,andGovernanceOfficeoftheChiefActuaryCorporateServicesandTransformationSectorCorporateServicescreatesandimplementsthestrategiesthatdeliverenterprise-widesolutionsthatmaketheday-to-dayoperationalactivitiesofOSFIpossible.CorporateServicesleadsourtransformationandrealizationoffoundationalBlueprintelementsinlinewithOSFI’svalues.StructureoftheCorporateServicesandTransformationSectorChiefFinancialOfficer:OSFI’sCFOwillcreateanewfullydedicatedchangemanagementteamthatwillprovidegreaterstructureanddisciplinearoundchangemanagement,ultimatelyimprovingtheeffectivenessofoureffortsandstrengtheningOSFI’schangeculture.Divisions:FinanceProcurementServicesAccesstoInformationandPrivacyEnterpriseChangeManagementChiefHumanResourcesOfficer:HumanresourceswillbeleadingtheBlueprintcultureinitiativeandwillbuildthefoundationthatwillshapeaninclusiveanddiversecultureandmeasurekeycultureperformanceindicators.Divisions:HROperationsCorporateProgramsandDevelopmentWorkplaceeffectivenessDiversityEquityInclusionandCultureChiefInformationOfficer:IM/ITensuresthenewtechnologyenvironmentissupportedbyamodernoperatingmodel,andamodernizedsuiteoftoolstosupplyourengagedandconnectedworkforce.Divisions:ClientRelationshipManagementIMITStrategicManagementEnterpriseInformationManagementApplicationServicesInfrastructureandTechnologyServicesCybersecurityChiefSecurityOfficer:TheCSOwillleadthePIVOTprojectandmakerapidadvancesinourbusinesscontinuityprogram.Divisions:SecurityFacilitiesServicesChiefTransformationOfficer:TheCTOteamaredriversofchangewhoprovidestewardshipoftheBlueprintinitiatives.Thisteamwillensurethatinterdependenciesareknownandunderstood;supporthorizontalcollaboration;andsupportbusinessleadersastheyrefocusourmandatetoplacegreateremphasisoncontributingtopublicconfidence.SupervisionSectorTheSupervisionSectorwillsupervisefederallyregulatedfinancialinstitutionsandpensionplansthroughassessingandrespondingtofinancialandoperationalriskswhilemakingcapital(andliquidity)adequacyassessments.StructureoftheSupervisionSectorRiskAdvisoryHub:Overseesfinancialriskanalysisfunctions,includingrelatedexpertiseforcapitalandliquidityadequacyassessmentsandadviceonimplementationofapplicableguidelinestandards.RiskAssessmentandInterventionHub:Leadssupervisoryfunctionsforbanking,insurance,andprivatepensionplans.SupervisionCentralOffice:ResponsibleforallactivitiesdesignedtosupporttheinternaloperationoftheSupervisionSector,includingrelevantmanagementandcorporateperformancereportingandplanning.SupervisionMethods,Standards,andControls:Responsibleforallactivitiesdesignedtosupportthedevelopmentandmaintenanceofsupervisorytechniquesusedintherobustassessmentandcontrolofsupervisoryrisks.SupervisionQualityAssurance:ResponsibleforallactivitiesdesignedtosupporttherobustapplicationofqualityassuranceacrossallofSupervision.TheSupervisionInstitute:Responsibleforallactivitiesdesignedtosupportthedevelopmentofsupervisorycapabilities,includinglearninganddevelopmentaswellasanincubatorforsupervisiontechnologies.PolicyInnovationandStakeholderAffairsSectorPolicyandInnovationwillcompletethesuiteofpoliciesinproductionrelatedtoNon-FinancialRisksanddevelopaleadingpolicyresponsetoclimaterelatedrisksthatcontributestoglobalconfidenceintheCanadianfinancialsector.StakeholderAffairsleveragesasolidfoundationinbothRADandCommunicationstodevelopaformalstrategicstakeholderrelationsfunctiontoensurethatourpositionsarestrategicallyandconsistentlyconveyedtopartners,stakeholdersandthepublic.StructureofthePolicyInnovationandStakeholderAffairsSectorAccountingPolicy:IdentifiesandinfluenceschangestoaccountingorauditingstandardsthatimpactFRFIsandprovideexpertadvicetosupervisioncolleaguesonaccounting,auditingandcapitaldisclosureissues.CentralOffice:Providescontinuoussupportintheareasofgovernance,planning,financeandpeoplemanagementtoenhanceoperatingeffectivenessofkeysectorprocesses,reporting,andplanning.ClimateRiskHub:Leadsanagile,proactiveandpragmaticapproachtosettingexpectationsthatcompelFRFIsandFRPPstoprepareformanagingtheirclimaterelatedrisks.CommunicationsandStakeholderAffairs:Leadsthestrategic,integratedapproachtoengagingwithOSFI’spartners,stakeholders,andthepublic.Providecommunicationsservicesandadvicethatintegratesintotheplanning,managementandevaluationoftheworkOSFIdoes.DigitalInnovationImpactHub:IdentifiestheimpactsofdigitalizationonFRFIsandleadthedevelopmentofOSFI’spositionwithregardstorisksassociatedwithdigitization.Non-FinancialRisk:Supportsthedevelopmentofinnovative,riskbasedpolicyresponsetonon-financialrisksthatsupportSupervisioninthetheirriskassessmentactivities.RegulatoryAffairsandStrategicPolicy:Developsandimplementsprudentialandlegislativeguidance.Administersthefederalfinancialinstitutionsandpensionsstatutesprimarilyinrelationtoapprovals,complianceandOSFI’sformalinterventiontools.Risk,Strategy,andGovernanceSectorTheRisk,Strategy,andGovernanceSectorensuresOSFImakesrisk-intelligentdecisionsinformedby:ResearchandanalyticsofpresentandfuturerisksimpactingFRFIsandourselvesEvolvingdataandanalyticscapabilitiesAsecond-linechallengefunctionunderpinnedbyacomprehensiveEnterpriseRiskManagementFrameworkSupportfromaStrategyandGovernanceOfficeforconsistencyandalignmentStructureoftheRisk,Strategy,andGovernanceSectorAppliedRiskResearchandAnalytics:Leadsacentralizedanddedicatedappliedresearchgrouptoscanandreportontheenvironmentforemergingrisks,regulatorydevelopmentsandotherrelevanttrends. Developstresstestingtoolsandscenarioanalyticscapacitytoprovideforward-lookingrisksurveillance.EnterpriseRiskManagement:LeadsOSFI’senterpriseriskmanagementprogram,includinganenterprise-wideriskappetiteframeworkthatdefinestherisksthatweareconsciouslywillingtotakeinthepursuitofourmandate.RiskandDataAnalytics:TransformshowOSFIcollects,managesanddrivesvaluefromdata.Providesexpertise,includingoversightofdatacollectionsystems,dataqualityprocesses,dataengineeringroutines,BIreportingandtheincreasinguseofadvancedanalytics.StrategyandGovernance:ResponsibleforthedevelopmentandimplementationofOSFI’sstrategicplanningandperformancemeasurementframeworksandreporting.OfficeoftheChiefActuaryTheOfficeoftheChiefActuaryprovidesactuarialservicesandadvicetotheGovernmentofCanadaonfederalsocialinsuranceprograms,andfederalpublicsectorinsuranceandpensionprograms.StructureoftheOfficeoftheChiefActuarySocialInsurancePrograms:AssiststheChiefActuaryinprovidingtotheministerofFinanceortheministerofFamilies,ChildrenandSocialDevelopment,statutoryactuarialreportsshowingthecosts,liabilities,andlong-termfinancialprojectionsfortheCPP,OASandtheCSLPrespectively.Othernon-statutoryactuarialservicesincludeactuarialestimatesofcostsandliabilitiesandlong-termfinancialprojectionsofanychangestotheseprogramsbeingconsideredbygovernments.PublicSectorInsuranceandPensionPrograms:AssisttheChiefActuaryinprovidingtothepresidentofTreasuryBoardortheministerofFinance,statutoryactuarialreportsonthecosts,liabilitiesandlong-termfinancialprojectionsinrespectofseveralinsuranceandpensionprogramscoveringthefederalpublicservice,theCanadianArmedForces,theRCMP,federallyappointedjudgesandmembersofParliament.Thissectionisalsoinvolvedinprovidingactuarialadviceandcostingtoassistvariousgovernmentdepartmentsinthedesign,fundingandadministrationoftheseprograms.​ 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