Third party survey on the use of technology

Following OSFI’s issuance of a discussion paper on Developing financial sector resilience in a digital world (see article in InfoPensions 25), we are reviewing the use of technology by federally regulated pension plans to better understand the risks and determine the need for additional guidance. Our review includes looking into the technologies used by third-party service providers.

Given the heavy reliance on third-party service providers, OSFI sent a survey to several third-party service providers in November 2021 to better understand technology-related risks and measures that are in place to mitigate the risk to plan beneficiaries. The survey focused on five key themes: services offered; the transfer of information and data; personal and financial data record keeping; oversight and compliance, and technological failures.

OSFI is continuing to analyze the responses received, however we have already noted the importance of clearly setting out the roles and responsibilities of the third-party service provider in the contract and ensuring that the terms of that contract are clearly understood.

OSFI’s analysis of the survey responses will help determine if there is a need for additional guidance for plan administrators on these risks.

Thank you to everyone who participated in the survey.