OSFI Updates the Corporate Governance Guideline in Canada
OSFI published the final version of its revised guideline on corporate governance. The guideline sets out expectations of OSFI from boards of directors of federally regulated financial institutions. OSFI also published a letter to the federally regulated financial institutions, the annex to which summarizes the material comments received on the proposed guideline and the response of OSFI to these comments.
The revised guideline is more principles-based and places greater focus on Board effectiveness. The revised guideline enables boards to be more effective in executing their roles and responsibilities. OSFI held a public consultation in 2017 and the key changes after consultation include the following:
- Providing boards with greater discretion over how they meet the principles of the guideline, taking into account the size, complexity, and risk profile of institutions
- Clarifying the delineation between board and senior management responsibilities
- Consolidating and rationalizing all OSFI requirements for boards in one guideline
This guideline does not apply to the Canadian branch operations of foreign financial institutions and the expectations of OSFI for oversight of these operations remains unchanged. However, OSFI plans to review and amend guidelines E-4A Role of the Chief Agent & Record Keeping Requirements and E-4B Role of the Principal Officer & Record Keeping Requirements in the near future.
Related Links
Keywords: Americas, Canada, Banking, Insurance, Corporate Governance, Guideline, Responses to Consultation, OSFI
Previous Article
US Agencies Propose Rule on the Treatment of HVCRERelated Articles
EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
FSB Sets Out Work Priorities for 2021
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU Publishes Corrigendum to Revised Capital Requirements Regulation
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs Issue Statement on Application of Sustainability Disclosures Rule
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC Consults on Crisis Management and Deposit Insurance Frameworks
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA Proposes Standards for Supervisory Cooperation Under IFD
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE Addresses Banks in Scope of First Resolvability Assessment
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.