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OSFI’s policy review

Information on our approach, next steps, and the industry benefits.

Video duration: 00 hours:02 minutes:29 seconds
Date: November 21, 2024

OSFI's Policy Review

Video

Transcript

[Vlasios Melessanakis, Managing Director - Policy Development and Standards Division]

Being an effective regulator is making sure that the regulatory framework meets the needs of evolving market conditions, but without imposing unnecessary burden on the institutions we oversee. In other words, it's having the right regulatory response for the right risks at the right time.

[OSFI Policy Review]

This Policy Review is about reducing regulatory burden. We would like our regulatory policy and guidance to be clearer, more transparent, and more predictable.

We are doing this in three ways:

First, we are taking a disciplined approach to prioritizing and focusing our policy releases. We prepare our lists in advance to the fiscal year. We refine it, and then time each of our releases according to the risks we see.

Second, we have a pre-set quarterly schedule for our releases and it's all about having the right focus, transparency and predictability for industry.

Third - and perhaps most important - we look at the full suite of our guidance and ask ourselves whether each guideline is still necessary. Whether they are out of date, redundant or no longer fit for purpose.

Now what is important to us, is that our portfolio of guidance, that which remains, continues to support our mandate - to protect the soundness, integrity, and security of Canada's financial system - but also aligns with our recently developed risk appetite and our new supervisory framework.

[Our next steps]

What comes next? And it’s a lot. This is the first stage of our guidance review. In the coming year, we will be developing two new foundational guidelines. The first is on risk management, which looks at enterprise-wide risk management, and a new board and senior management accountability guideline, which is really a refashioned corporate governance guideline.

All of this work will allow us to consolidate many of our existing expectations, but also address a few gaps that we see.

It's an initial step to what we hope will be a regular habit for OSFI. To regularly review our guidance to make sure they remain fit for purpose and effective, but also be clear and transparent and to focus on the right risks. It also ensures that the regulatory framework we have in place is lean and adaptive.

[Visual identifier: OSFI logo]

[Visual identifier: Government of Canada logo]