OSFI is consulting on the draft changes to its corporate governance guideline. This guidance sets out expectations for boards of federally regulated financial institutions (FRFIs). It applies to all FRFIs other than the branch operations of foreign banks and foreign insurance companies. The public consultation closes on December 22, 2017.
In June 2016, OSFI announced a comprehensive review of its expectations for FRFI Boards of Directors, to rationalize and clarify requirements to better enable effective governance. The review is intended to ensure that the OSFI guidance continues to reflect evolving governance standards and enables boards to focus on key risks and execute their oversight roles efficiently. The key amendments to the guideline include:
- Providing boards with greater discretion on how they meet the principles of the Corporate Governance Guideline, taking into account the FRFI’s size, nature of operations and risk profile
- A clearer delineation of board and senior management responsibilities across the FRFIs
- Consolidation and rationalization of board requirements into one place
Corporate governance provides the structure through which the objectives of the company are set and through which the means of attaining those objectives and monitoring performance are determined. The quality of FRFI corporate governance practices is an important factor in maintaining the confidence of depositors and policyholders as well as overall market confidence. OSFI is expected to assess the comments received and issue a final version in spring 2018.
Related Link: Press Release
Comment Due Date: December 22, 2017
Keywords: Americas, Canada, Banking, Insurance, Securities, Corporate Governance, Guideline, OSFI
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