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September 7, 2023   Cyber Security, Hacks, Fraud Alerts, Risks, Enterprise, Leadership, Competition, Human Capital, Health, Legal Issues, Regulation, Consultation, Regtech, Compliance, Governance   No comments

OSFI’s Expansion of Power to Supervise Non-Financial Risks for FRFIs

Regulation | Sep 7, 2023

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OSFI Signals New Regulatory Steps for Financial Institutions' Integrity and Security in Letter to Industry

The Office of the Superintendent of Financial Institutions (OSFI) recently announced its strategic roadmap to bolster the integrity and security of Canada's federally regulated financial institutions. This move, set to reshape the financial landscape, emphasizes the importance of both financial and non-financial risk management.

  • Broadened Mandate: In June 2023, Parliament expanded OSFI's mandate, emphasizing the need for financial institutions to have robust policies and procedures against potential threats, including foreign interference.
  • Annual Examinations: OSFI will conduct yearly examinations of these institutions to ensure they are equipped against threats to their integrity or security.
  • Transparent Reporting: An annual report detailing these examinations will be presented to the Minister of Finance, reinforcing transparency and accountability.
  • Future Guidelines: OSFI has outlined a timeline for discussions with stakeholders, the release of draft guidelines on operational risk, resilience, integrity, and security, culminating in the final guideline's release in January 2024.

See:  Consultation Until Sep 20, 2023: OSFI Proposes New Guidelines for Crypto-Asset Exposures in Canada

Next Steps

  • Engage and hold initial discussions with stakeholders in September 2023.
  • Issue a revised draft guideline on operational risk and resilience (E-21) for consultation from September 2023 to February 2024.
  • Issue a draft guideline on integrity or security for consultation from October 2023 to November 2023.
  • Release the final guideline on integrity or security in January 2024.

As OSFI continues to prioritize the security and integrity of Canada's financial institutions, these new provisions signify a proactive approach to risk management. Financial entities and stakeholders should anticipate a more rigorous and transparent regulatory environment, ensuring the continued trust and confidence in the Canadian financial system.

NCFA Jan 2018 resize - OSFI's Expansion of Power to Supervise Non-Financial Risks for FRFIsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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