Conflict of Interest Policy

Part I – Introduction

1.1 Introduction and guiding principles

The Office of the Superintendent of Financial Institutions (OSFI) requires that at all times, employees uphold and be seen to uphold the highest ethical standards. The objective of this Policy is to minimize risks associated with financial conflict of interest situations in order to preserve the public confidence in OSFI’s integrity, objectivity and impartiality, as well as the independence of the Office in the financial system.

OSFI employees must act in a manner that will bear the closest public scrutiny, an obligation that is not fully discharged by simply acting within the law. Employees must be aware of the perception of a particular situation in the public eye and act with a view to minimizing actual and perceived conflicts of interest. Employees shall take necessary actions and arrange their private affairs in a manner that will prevent real, potential or apparent conflicts between their private interests and public service duties from arising. If such a conflict does arise, it shall be resolved in a timely manner and in favour of the public interest.

This Policy seeks to help employees avoid situations that could give rise to a real or apparent conflict of interest and guide employees in making decisions when they find themselves in a situation that has the potential to create such a conflict.

The Superintendent and employees are also required to observe all specific conduct requirements contained in the Values and Ethics Code for the Public Sector as well as OSFI’s Statement of Values and Code of Conduct (under review), the Office of the Superintendent of Financial Institutions Act, financial institutions legislation and the relevant provisions of legislation of more general application, such as the Criminal Code, the Federal Accountability Act, the Canadian Human Rights Act, the Privacy Act.

1.2 Application

This Policy applies to every person employed by OSFI, unless otherwise stipulated within this Policy or excluded through specific acts, regulations or orders-in-council. This includes individuals who were hired on a full-time, part-time or term basis, regardless of their level or position. Employees on leave, including leave without pay, continue to be subject to the Policy for the extent of their leave.

The Policy also applies to students and casual employees, although they are exempt from
Part II (Reporting and Managing Financial Conflicts of Interest and Part IV (Preventing Post-Employment Conflict of Interest Situations).

Compliance with OSFI policies is mandatory.

1.2.1 Exceptions

Under exceptional circumstances, the Superintendent may exempt employees from certain provisions of this Policy, either absolutely or subject to such conditions as the Superintendent considers appropriate.

Those working at OSFI by means of an Interchange agreement are exempt from this Policy but must respect its intent.

This Policy does not apply to individuals who provide services to OSFI by virtue of a contract or a memorandum of understanding (MOU).  They are bound by the legal contract documentation, which aligns with the spirit of this Policy. Further information can be obtained by contacting OSFI’s Procurement and Contracting office.

This Policy does not apply to the Superintendent, who is governed by the Conflict of Interest and Post-Employment Code for Public Office Holders, with respect to his or her own real, potential or apparent conflicts of interest. However, the Superintendent is expected to demonstrate leadership by complying with the spirit of this policy.  The Superintendent is also assigned duties and responsibilities under this Policy.

1.3 Definitions

1.4 Responsibilities

1.4.1 The Superintendent is responsible for

1. monitoring and ensuring compliance with this Policy as well as responding to cases of non-compliance;
2. deciding whether to exempt an OSFI employee from one or more provisions of the Policy, either absolutely or conditionally;
3. ruling on disputes concerning the application of this Policy to OSFI employees;
4. making final decisions with respect to any reduction in the limitation period under section 4.3.1; and
5. as required, deciding on the increase or amendment of the measures in the Policy, taking into consideration the unique and special responsibilities of OSFI.

1.4.2 The Superintendent's Designate is responsible for

1. receiving and retaining blind trust agreements and reports completed by employees and making recommendations to the Superintendent to address any potential conflict of interest situation;
2. annually reminding employees to review their obligations under the Policy and the Act and declare any changes to their personal or professional circumstances that may present a real or perceived conflict of interest;
3. capturing and preserving information with respect to conflict of interest situations that have business value;
4. making recommendations to the Superintendent with respect to any reduction in the limitation period under section 4.3.1;
5. referring disputes to the Superintendent; and
6. answering questions concerning the application of the Policy.

1.4.3 OSFI employees are responsible for

1. familiarizing themselves and complying with the Policy in all of their duties;
2. ensuring they are not knowingly taking advantage of or benefiting from information that is obtained in the course of their official duties and responsibilities and that is not available to the public;
3. reviewing their obligations under the Policy and the Act annually and declaring, throughout the year, any changes to their personal or professional circumstances that may present a real or perceived conflict of interest, beyond that of controlled assets.
4. recusing themselves from all activities related to OSFI contracts or agreements in respect of which they would be in a real or perceived conflict of interest.
5. recusing themselves from any discussion or decision on any matter in respect of which they would be in a conflict of interest;
6. complying with the decision of the Superintendent on the divestiture of property, if applicable;
7. informing the Superintendent’s Designate of any conflict of interest situation arising after termination of employment.

Part II – Reporting and managing financial conflicts of interest

The objective of this Policy is to minimize risks associated with financial conflict of interest situations in order to preserve the public confidence in OSFI’s integrity, objectivity and impartiality.  Accordingly, appropriate mechanisms are in place to help OSFI employees report and effectively manage real, apparent or potential conflict of interest situations that arise with respect to their assets and liabilities and the performance of their duties and responsibilities.

2.1 General prohibition

1. Except as otherwise provided in this Part, it is strictly prohibited for employees to beneficially own any Controlled Asset that is not an Exempt Asset. In addition, the Superintendent may require, with respect to assets that are not Controlled Assets, that particular arrangements be made to prevent any conflict of interest situation from arising.
2. Employees shall not knowingly take advantage of, or benefit from, or enable others to benefit from, information that is obtained in the course of their official duties and responsibilities and that is not generally available to the public. At all times, employees must comply with securities legislation relating to insider trading and tipping. This prohibition includes providing any form of advice that could affect the value or disposition of investments held by anyone, including friends or family members.

   It is an offence under securities legislation to:

   1. Purchase or sell securities of a reporting issuer with the knowledge of a material fact that has not been generally disclosed; or
   2. Inform any other person, other than in the necessary course of business, of a material fact before the fact has been generally disclosed.

2.2 Unauthorized use of information

OSFI employees must comply with the Confidentiality - Unauthorized Use or Disclosure of Information clause of OSFI’s Statement of Values and Code of Conduct.

Unauthorized access, disclosure, or use of confidential information for personal reasons, constitutes a Conflict of Interest and is prohibited. Such activities include using confidential information for financial gain, or the financial gain of others, to prepare for a job interview or employment outside OSFI and/or to attract the interest of employers outside OSFI.

These types of actions may constitute fraud and will be subject to such disciplinary measures as described in section 5.2 of this Policy.

2.3 Controlled assets

Controlled Assets are assets whose value could be directly or indirectly affected by OSFI’s decisions or policy, including, but not limited to, the following:

1. securities issued by any FRFI such as, but not limited to, stocks, bonds/debentures, trust units, commercial papers and medium-term notes that are held directly or within a self-administered investment plan;
2. any securities of a corporation, the value of which are materially dependent on direct or indirect investments in one or more FRFI;
3. mutual funds, exchange-traded funds, pooled funds and any investment funds that have a stated policy that results in investing primarily in FRFIs;
4. any securities of a company controlled by a FRFI;
5. for employees who participate in the awarding of government contracts, securities in a corporation, or loans receivable from a corporation, that contracts with OSFI.

Employees are expected to exercise due diligence and judgement and respect the intent of the Policy. This list is not exhaustive - Controlled Assets also include other similar investment products. Briefly, any financial instrument of any entity supervised by OSFI, whether traded on an exchange or over-the-counter, is considered a Controlled Asset.  Employees are also expected to seek advice from their manager or the Superintendent’s Designate if they are uncertain whether an asset may constitute a Controlled Asset.

2.4 Exempt assets

Exempt assets are assets that are for the private use of employees and their families, that are not of a commercial character and for which the value is not significantly affected by OSFI’s decisions or policies including, but not limited to, the following:

1. Controlled Assets held in registered retirement savings plans and registered education savings plans that are not self-administered;
2. shares required to be purchased to become or remain a member of a credit union;
3. guaranteed investment certificates and similar financial instruments;
4. annuities and insurance policies (provided that the investment options of the policy do not contravene other sections of this Policy that are applicable to investments generally or are not Controlled Assets); and
5. money owed by a previous employer, client or partnership.

2.5 Measures to resolve a financial conflict of interest

2.5.1 Confidential report

1. Within 60 days after appointment and thereafter annually, every employee shall make a Confidential Report to the Superintendent's Designate of all assets, interests in any assets and any arrangements or relationships that may give rise to a real, apparent or potential conflict of interest in relation to their official duties and responsibilities. Employees should be guided by this Policy to determine whether a particular asset or relationship could give rise to a real or perceived conflict of interest. The Confidential Report should also include assets or interests that are owned by immediate family members but managed by the employee.
2. Employees are required to report within 30 days any significant change in their assets that could lead to a real or perceived conflict of interest.
3. Employees are required to report within 30 days any changes to their personal or professional circumstances that may present a real or perceived conflict of interest, beyond that of controlled assets.

2.5.2 Disposal of controlled assets

1. Within 120 days after appointment, employees shall arrange for their Controlled Assets to be disposed either through divestment in an arm’s length transaction or by placing them in a blind trust. Controlled Assets that have been pledged to a lending institution as collateral shall be arranged for disposal within 180 days after appointment.
2. If possible, employees should avoid being involved in any decisions relating to the timing of the disposition. They must also decline to be involved in any circumstances or decisions that may lead to a conflict of interest because of their ownership of the Controlled Assets until they have disposed of them.
3. Employees obtaining Controlled Assets because of situations beyond their control such as inheritances or gifts are required to report these assets and arrange for them to be disposed of either through divestment or by placing them in a blind trust within 120 days.
4. The Superintendent’s Designate is responsible for determining that a blind trust meets the necessary requirements, including the requirements issued by the Commissioner. Before an arrangement is executed or when a change is contemplated, a determination that the arrangement meets the necessary requirements shall be obtained from the Superintendent’s Designate.
5. Confirmation of sale or a copy of any executed instrument shall be filed with the Superintendent's Designate. With the exception of a statement that a sale has taken place or that a blind trust exists, OSFI will keep all information relating to the disposition confidential.
6. On the recommendation of the Superintendent’s Designate, the following reimbursements for costs to comply with this Policy may be permitted, subject to the reimbursement limits published by the Commissioner:
   1. reasonable legal, accounting and transfer costs to establish and dismantle a blind trust determined to be necessary by the Superintendent;
   2. annual, actual and reasonable costs to maintain and administer the blind trust;
   3. commissions for transferring, converting or selling assets where determined necessary by the Superintendent;
   4. costs of other financial, legal or accounting services required because of the complexity of such assets.
   5. Costs for removing an employee's name from federal or provincial registries of corporations.
7. Reimbursement is not permitted for:
   1. charges for day-to day operations of a business or commercial entity;
   2. charges associated with winding down a business; or
   3. costs for acquiring permitted assets using proceeds from required sale or other assets.
8. The employee is responsible for any income tax adjustment that may result from the reimbursement of blind trust costs and/or any gains or losses resulting from the divestment.

Part III – Preventing and dealing with situations of conflict of interest during employment

The intent of preventing and dealing with conflict of interest situations that could arise when OSFI employees take part in activities, whether as part of their official OSFI functions or externally, is to preserve the public confidence in OSFI’s ability to carry out its mandate with the highest degree of integrity, objectivity and impartiality. As such, employees must always exercise caution and refrain from taking part in any activity that could lead to a real or perceived conflict of interest situation while they are employed at OSFI.

3.1 General prohibition

1. Employees must exercise vigilance when deciding whether to engage in certain activities such as external employment or business activities, when seeking temporary employment opportunities outside of OSFI while retaining their status as an OSFI employee, when participating in conferences as speaker or as attendee, and when carrying out their official duties and responsibilities related to OSFI’s contracts or agreements.
2. Employees must not solicit or accept any gifts, hospitality or other benefits that may have a real, apparent or potential influence on their objectivity in carrying out their official duties and responsibilities or that may place them under obligation to the donor. This includes activities such as free or discounted admission to sporting and cultural events, travel or conferences.  Gifts of cash, grants, gratuities (tips) or equivalent, in any amount, are not acceptable under any circumstances.

3.2 External employment and business activities

1. Employees’ primary professional responsibility is to OSFI. Any secondary employment that interferes or gives rise to a conflict of interest with an employee’s duties at OSFI must be avoided. OSFI does not object to employees having a second source of income but does insist that such work be undertaken only if it does not interfere with their ability to fully perform their duties and responsibilities at OSFI.
2. Activities related to secondary employment or outside studies must not be carried on during OSFI core working hours unless pre-approved. Employees shall not directly or indirectly use, or allow the use of, non-public information gained through work performed for OSFI for anything other than officially approved activities. Employees are responsible to only use OSFI resources for authorized purposes and in a secure manner.  Direction and guidance on acceptable use is contained in the Standard on Acceptable Use of OSFI Electronic Networks and Devices, which will be superseded by the Cyber Security Directive for Users.

3.2.1 Directorships

1. Employees are prohibited from serving on the board of directors of financial institutions or financial institution’s holding companies, or entities carrying on business that is substantially similar to any business carried on by any financial institution.
2. Employees may retain or accept directorships in organizations of a philanthropic, charitable or non-commercial character but must take great care to prevent conflicts of interests, real or perceived, from arising.
3. Employees may retain or accept directorships in organizations other than those covered in the paragraphs above with the consent of the Superintendent’s Designate and provided that such directorship creates no conflicts of interests with their duties at OSFI.

3.2.2 Interchange assignments

1. Employees may, if they obtain all necessary consents, participate in Interchange Assignments within other federal government departments or entities outside the government. Employees participating in Interchange Assignments continue to be employed at OSFI and must comply with this Policy.

3.3 Gifts, hospitality and other benefits from regulated entities and other entities having a business relationship with OSFI

1. OSFI recognizes that working lunches and dinners may serve a legitimate business purpose and that widely-attended receptions may foster important relationships. Employees can accept such unsolicited hospitality if it is:
   1. in the employee’s judgment, within the bounds of propriety;
   2. infrequent and of minimal value; and
   3. offered in such circumstances that acceptance of the hospitality could not be construed by an objective observer to be unusual, could not risk creating a sense of obligation or bias to the host, or could not compromise or appear to compromise objectivity, impartiality or integrity.
2. Gifts, hospitality and other benefits may be accepted if they are infrequent and of minimal value, within the normal standards of courtesy or protocol, arise out of activities or events related to the official duties and responsibilities of persons employed, and do not compromise or appear to compromise the integrity of the person employed or of the organization. Except for working lunches and dinners, as noted above, all other gifts, hospitality and other benefits are to be declared within 30 days of receipt to the Superintendent's Designate, who will determine their propriety.
3. Employees are to report and seek written direction from the Superintendent's Designate when they cannot decline gifts, hospitality or other benefits that do not meet the principles set out above, or where it is believed that accepting certain types of hospitality would bring sufficient benefit to the organization.
4. Employees should “look through” to the ultimate client of persons or entities hired to represent the interests of regulated entities, groups of regulated entities, or entities having a business relationship with OSFI (for example lobbyists, lawyers or other spokespersons). In this respect, employees should treat gifts, hospitality and benefits offered by such representatives as being offered directly by the representative’s client. Employees approached by such representatives should familiarize themselves with the applicable provisions of the Lobbyists’ Registration Act and the Federal Accountability Act, as communicated by OSFI.

3.4 Hospitality and benefits from entities with no business relationships or regulatory interests in OSFI’s activities

1. The potential for real or apparent conflicts of interest is significantly reduced when dealing with entities that have no business relationships or regulatory interests in OSFI’s activities. Accordingly, employees may accept gifts or hospitality from non-industry associations, other regulators, other governments or other entities that have no commercial or business dealings with OSFI. However, employees should be alert to the possibility that seemingly disinterested parties may offer gifts, hospitality or benefits to further the interests of regulated entities, in which case, employees should decline the gift or invitation.
2. Unsolicited gifts, hospitality or other benefits offered in connection with a widely attended event (i.e. not available just to OSFI employees) or that are unrelated to the employee’s duties at OSFI (for example, gifts provided to all persons who raised money for a certain charity) may be acceptable. If in doubt, declining or offering to share costs is the safest course of action.
3. Employees may accept payment of expenses, such as airfare, hotel, hospitality and conference fees for participation at workshops organized by other regulators, associations of regulators or other governments.
4. All gifts, hospitality or other benefits from such entities having a cumulative value of over $200 received from a single source during any twelve-month period are to be declared within 30 days of receipt to the Superintendent's Designate.

3.5 Conferences

3.5.1 Speaking at conferences

1. Employees may participate as guest speakers at conferences that relate to OSFI’s activities.
2. Participants must ensure that the information they provide is not of a confidential nature or such that it would give an unfair advantage to the participants in their future dealings with OSFI or related government entities.
3. Employees asked to speak at conferences sponsored and/or organized by FRFIs, industry associations or related lobbyists (e. g. CBA, CLHIA, IBC) can accept unsolicited reduced registration fees and hospitality if available to all speakers, but cannot accept payment for travel or accommodation expenses.
4. Employees asked to speak at conferences sponsored and/or organized by non-industry related organizers, other regulators or professional associations (e.g. Canadian Institute, Conference Board, Insight, Ontario Bar Association, International Actuarial Association) can accept unsolicited reduced registration fees, hospitality, travel and accommodation expenses if available to all speakers^{Footnote 1}.
5. Employees asked to speak at conferences where the host organization offers a cash honorarium must inform the Superintendent’s Designate and, according to the circumstances, either refuse the honorarium or remit it to OSFI. If a conference host offers to make a donation on behalf of OSFI or the employee to a charity of the employee’s choice, the employee should request that the donation be made to the Government of Canada Workplace Charitable Campaign. However, employees may accept unsolicited token souvenirs or expressions of gratitude for speaking or participating in the conference, for example pens, paperweights, golf shirts, flowers or bottles of wine. 

3.5.2 Attending conferences

1. Employees can accept meals or token souvenirs provided in connection with a widely attended conference or gathering.
2. Employees may not accept payment of expenses, such as airfare and hotel or reduced registration fees for attending a conference unless such benefits are available to all conference attendees^{Footnote 1}. Employees may, however, accept reasonable hospitality incidental to the attendance at a conference (such as a lunch offered to all participants).

3.6 Solicitation

1. With the exception of fundraising for officially supported activities such as the Government of Canada Workplace Charitable Campaign, employees may not solicit gifts, hospitality, other benefits or transfers of economic value from a person, group or organization in the private sector who has dealings with OSFI. When fundraising for such official activities, employees should ensure that they have prior written authorization to solicit donations, prizes or contributions in kind from external organizations or individuals.

3.7 Avoidance of preferential treatment

1. Employees shall not step out of their official role to assist private entities or persons in their dealings with the government where this would result in preferential treatment to any person.
2. Employees shall not accord preferential treatment in relation to any official matter to family members or friends, or to organizations in which they, their family members or friends, have an interest.
3. In the formulation of policy or the making of decisions, employees shall ensure that no persons or groups are given preferential treatment based on the individuals hired to represent them.
4. Employees shall not use their position as an OSFI employee to influence or attempt to influence the decision of another person so as to further the employee’s private interests, or the private interests of friends or family members.

3.8 Contracting activities

1. Employees are prohibited from using non-public information accessed through performance of a Government contract for personal gain.
2. Employees shall not participate in any activities related to the establishment or administration of OSFI contracts or agreements that may, or may appear to, provide an advantage to themselves, family members or friends, or to organizations in which they, their family members or friends have an interest.
3. Employees shall not use their position as an OSFI employee to influence or attempt to influence decisions related to OSFI Contracts or agreements, so as to further the employee’s private interests, or the private interests of friends or family members
4. Employees shall refrain from taking part in any activity or situation that may have a real, apparent or potential influence on their objectivity in carrying out their official duties and responsibilities related to OSFI contracts or agreements.

Part IV – Preventing post-employment conflict of interest situations

The intent of preventing post-employment conflict of interest situations is to preserve the public confidence in OSFI’s integrity, objectivity and impartiality, as well as the independence of the Office in the financial system. As such, OSFI employees have a responsibility to minimize the possibility of a real, apparent or potential conflict of interest between their most recent responsibilities within the public service at OSFI and their subsequent employment in the private sector.

Upon their resignation or retirement from OSFI, employees are required to sign a post-employment letter attesting that they have reviewed and understood their obligations as stipulated in this Policy.

4.1 Compliance measures before leaving office

OSFI employees must not allow themselves to be influenced in the pursuit of their official duties and responsibilities by plans for or offers of outside employment.

4.1.1 RE employees

1. RE Employees shall disclose to their manager, immediately, all offers received for outside employment, whether accepted, not accepted or being considered that could possibly lead to a real, apparent or potential conflict of interest related to their most recent responsibilities within OSFI.
2. In the event that it is determined by the manager and the Sector Head that the employee is engaged in significant dealings with the future employer that give rise to a potential conflict of interest, the employee shall be assigned to other duties and responsibilities as soon as possible. Alternatively, an earlier departure date may be mutually agreed upon.

4.1.2 Executive level (REX) employees

1. REX Employees are encouraged, but not obliged, to inform their manager of any discussions with any potential future employers that could lead to a real, apparent or potential conflict of interest related to their most recent responsibilities within OSFI.
2. REX Employees shall immediately disclose in writing, to both their manager and Sector Head, all offers received for outside employment, whether accepted, not accepted or being considered that could lead to a real, apparent or potential conflict of interest related to their most recent responsibilities within OSFI.
3. Sector Heads shall immediately disclose in writing to both the Superintendent and the Superintendent’s Designate, all offers received by their REX Employees for outside employment, under section 4.1.2 (b).
4. In the event that it is determined that the REX Employee is engaged in significant dealings with the future employer that give rise to a potential conflict of interest, the Superintendent’s Designate will make a recommendation to the Superintendent as per section 4.3.

4.1.3 Members of the Executive Committee (EC)

1. Members of the Executive Committee are prohibited from exploring or discussing future employment, board or consulting work opportunities with FRFIs while a member of EC. 
2. Members of the Executive Committee shall disclose immediately in writing to the Superintendent all firm offers they have received for outside employment, whether accepted, not accepted or being considered that could lead to a real, apparent or potential conflict of interest related to their most recent responsibilities within OSFI.

4.2 Compliance measures after leaving office

4.2.1 Former employees

1. Employees shall not, after they leave OSFI, act in such a manner as to take improper advantage of their previous position or employment. This includes not switching sides by acting for or on behalf of their new employer or client in connection with any specific ongoing proceeding, transaction, negotiation or case to which OSFI is a party and where the former employee acted for or advised OSFI.  Observance of this Part will minimize the possibilities of:
   1. Prospects of outside employment creating a real, potential or apparent conflict of interest for employees while with OSFI;
   2. Obtaining preferential treatment or privileged access to government after leaving OSFI;
   3. Taking personal advantage of information obtained in the course of official duties and responsibilities before it has become generally available to the public, including advising a client or new employer using information that is not available to the public concerning financial institutions and pension plans, OSFI programs, policies and other information obtained from other departments or agencies; and
   4. Employees using their position or employment to gain an unfair advantage in obtaining opportunities for outside employment.

4.3 Post-employment limitation period and reduction of limitation period

4.3.1 Executive level (REX) employees

1. Former executive level (REX) employees, including Executive Committee members, shall not:
   1. Within a period of one year after leaving office, accept appointment to a Board of Directors of, or employment as an employee or as a consultant with, a regulated entity, the sponsor of a pension plan supervised by OSFI or an entity in a business relationship with OSFI, such as industry associations if, during the period of one year immediately prior to their departure from OSFI:
      • the REX employee had direct and significant official dealings with the proposed new employer; or
      • the REX employee acquired a significant amount of confidential information about a direct competitor of the proposed new employer.
   2. Within a period of one year after leaving office, make representations for or on behalf of any other person or entity to OSFI.
2. Under exceptional circumstances and on application from an Executive Level (REX) employee, the Superintendent may waive or reduce the limitation period. For further information, please consult the “Procedure for a Reduction in the Limitation Period under the Conflict of Interest Policy” in the References section.
3. In deciding whether to reduce the limitation period, the Superintendent will consider whether the public interest in granting the reduction outweighs the public interest in maintaining the prohibition. 
4. The Superintendent will also consider other factors, including:
   1. the circumstances under which the termination of their service at OSFI occurred;
   2. the general employment prospects of the employee making the application;
   3. the significance to OSFI of information possessed by the employee by virtue of his or her position;
   4. the desirability of a rapid transfer from OSFI to private or other governmental sectors of the employee's knowledge and skills;
   5. the degree to which the new employer might gain unfair commercial advantage by hiring the employee;
   6. the authority and influence possessed by the employee while at OSFI;
   7. the disposition of other similar cases; and,
   8. any other consideration at the discretion of the Superintendent.
5. The Superintendent’s decision is final and shall be communicated in writing.

Part V – Compliance

5.1 Procedures

1. Before or on assuming their official duties and responsibilities, every employee shall sign a document certifying that, as a condition of their being appointed to their position, they will observe this Policy.
2. Throughout the year, employees shall report any changes to their personal or professional circumstances that may present a real or perceived conflict of interest, beyond that of controlled assets, by submitting a Confidential Report the Superintendent’s designate.
3. An employee shall report any situation where a conflict of interest arises (or may arise) to the Superintendent's Designate. In the event that the employee and the Designate disagree on the appropriate arrangements necessary to comply with this Policy, the matter will be referred to the Superintendent for decision. Sector Heads shall report any potential conflict of interest situation to the Superintendent. 
4. OSFI employees have three safe and confidential channels they can use to disclose serious concerns of wrongdoing in the workplace, including suspicions of fraud.  OSFI’s  Disclosure of Wrongdoing Procedure can be consulted for more information, as well as for details on the disclosure process.

5.2 Consequences of non-compliance

Where corrective or disciplinary measures may be required, the Superintendent determines the measures in consultation with the Superintendent’s Designate. Reasonable and timely corrective or disciplinary measures will be taken based on analysis of the situation. Corrective action for the employee found to be in conflict of interest may include a reprimand; a suspension; a transfer; a demotion; and/or termination of employment.

5.3 References

The Conflict of Interest Policy is based on the authorities set out in the legislation listed below. The Policy must be administered and implemented in conjunction with the other references listed below:

5.3.1 Legislation

• Bank Act
• Canadian Human Rights Act
• Conflict of Interest Act
• Cooperative Credit Associations Act
• Criminal Code
• Federal Accountability Act
• Financial Administration Act
• Insurance Companies Act
• Lobbying Act
• Office of the Superintendent of Financial Institutions Act
• Privacy Act
• Public Servants Disclosure Protection Act
• Public Service Employment Act
• Trust and Loan Companies Act

5.3.2 Policy instruments (for internal purposes only)

• Standard on the Acceptable Use of OSFI Electronic Networks (To be superseded by the Cyber Security Directive for Users)
• Statement of Values and Code of Conduct (OSFI)
• OSFI’s Disclosure of Wrongdoing Procedure
• Values and Ethics Code for the Public Sector (Government of Canada-Treasury Board Secretariat)
• Procedure for a Reduction in the Limitation Period under the Conflict of Interest Policy
• OSFI Contracting Handbook

5.4 Enquiries

Questions about this Conflict of Interest Policy should be directed to the Superintendent’s Designate, the Managing Director, Human Resources and Administration.

5.5 Resolution

It is expected that conflicts of interest situations will be resolved through discussion and agreement between the employee and the Superintendent’s Designate. In the event that the employee and the Designate disagree on the appropriate arrangements necessary to comply with this Policy, the matter will be referred to the Superintendent for decision.

5.6 Version history table