OSFI strengthens oversight of financial institutions with Bill C-47

Officials given wider range of compliance and intervention tools

OSFI strengthens oversight of financial institutions with Bill C-47

Insurance News

By Mika Pangilinan

The Office of the Superintendent of Financial Institutions (OSFI) will receive expanded powers following the Royal Assent of Bill C-47 or the Budget Implementation Act. The move is aimed at safeguarding the integrity and security of federally regulated financial institutions (FRFIs).

Parliament passed Bill C-47 on June 22, 2023, ushering a series of amendments that solidify OSFI’s mandate to contribute to public confidence in the Canadian financial system.

These amendments grant the Superintendent and the Minister of Finance a broader range of compliance and intervention tools, strengthening their ability to counter emerging threats.

Effective January 1, 2024, FRFIs will be required to have and adhere to policies and procedures designed to shield themselves against threats to their integrity and security, including those stemming from foreign interference.

Peter Routledge, Superintendent of Financial Institutions, expressed his confidence in the new legislation and its potential to enhance the oversight of FRFIs across Canada.

“Canadians must be confident that FRFIs have protections in place to counter threats to their integrity or security, including foreign interference,” he said in a statement.

According to Routledge, the OSFI will conduct meticulous assessments of the policies and procedures implemented by each FRFI to determine their sufficiency. The results of these examinations will be communicated annually to the Minister of Finance in comprehensive reports.

“In line with our 2022-25 strategic plan and risk appetite statement, we are adapting the nature of our work in response to our evolving risk environment,” he said. “This allows us to address any developing risks as early as possible.”

Earlier this year, the OSFI issued guidelines for how FRFIs should approach climate risk management.

These guidelines require FRFIs to increase their climate risk disclosures and establish plans for the transition to a low-carbon economy.

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