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.
Keywords: Americas, Canada, Banking, Insurance, Corporate Governance, Guideline, Responses to Consultation, OSFI
Previous ArticleUS Agencies Propose Rule on the Treatment of HVCRE
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.