Office of the Superintendent of Financial Institutions Canada

Info Source

Sources of Federal
Government Information
2008

Office of the Superintendent of Financial Institutions Canada

General Information

Background

The Office of the Superintendent of Financial Institutions (OSFI) was established in 1987 by the Office of the Superintendent of Financial Institutions Act. OSFI is divided into a Corporate Services Sector, a Regulation Sector, a Supervision Sector, and the Office of the Chief Actuary.

Responsibilities

OSFI is responsible for regulating and supervising all banks in Canada and all federally incorporated or registered trust and loan companies, cooperative credit associations, life insurance companies, fraternal benefit societies, and property and casualty insurance companies. It also regulates and supervises federally regulated private (employer-sponsored) pension plans that are subject to the Pension Benefits Standards Act, 1985. Through the Office of the Chief Actuary, OSFI provides a range of actuarial services, under legislation, to the Canada Pension Plan (CPP) and some federal government departments, including the provision of expert and timely advice in the form of reports tabled in Parliament.

Legislation

Bank Act
Cooperative Credit Associations Act
Green Shield Canada Act
Insurance Companies Act
Office of the Superintendent of Financial Institutions Act
Pension Benefits Standards Act, 1985
Trust and Loan Companies Act

Organization

Corporate Services Sector
The Corporate Services Sector provides the ressources and infrastrucure necessary to support supervisory and regulatory activities. It leads the strategic planning process, and ensures sound administration of the organization.

This Sector comprises four divisions: Communications and Public Affairs; Finance and Corporate Planning; Project Management and IT Services; and Human Resources and Administration.

Regulation Sector
This Sector has seven divisions that develop regulatory policy and guidelines, prepare recommendations with respect to applications for regulatory consents under the legislation, develop rulings that set precedents, and draft technical aspects of financial sector legislation. The Sector also contributes to the risk assessment and intervention process by providing specialized expertise to the Supervision Sector. The Sector coordinates OSFI's relations with other regulators and supervisors and works with a number of domestic and international organizations that deal with financial stability issues. The Sector also provides legal support to OSFI and supervises all federally regulated pension plans.

Actuarial Division
This Division ensures that appropriate actuarial knowledge, advice, and standards are applied to OSFI's regulatory and supervisory functions.

The Division assists in the formation of policy and the preparation of guidance on actuarial and insurance issues. It works closely with the Capital, Accounting and Research Division with respect to insurance industry matters. It also works closely with the Actuarial Standards Board and the Canadian Institute of Actuaries to ensure that appropriate actuarial standards are in place.

The Division also provides support to the Supervision Sector in the supervision and examination of federally regulated insurers. It also specifies requirements for and reviews the content of several actuarial reports prepared by insurers' appointed actuaries.

Capital, Accounting and Research Division (CARD)
The Division develops capital standards for domestic financial institutions, contributes to the development of sound international capital standards, approves capital precedents, provides specialist support on capital issues to the supervisory and regulatory functions, and promotes understanding of capital requirements by OSFI staff and external stakeholders.

In addition, the Accounting Policy unit within CARD acts as the centre of expertise in accounting and auditing standards for FRFIs; as well as international accounting and auditing policy and practices. APD develops accounting guidance and regulatory standards that apply to FRFIs. It contributes to international accounting guidance and supports the Supervision Sector by interpreting and clarifying accounting practices.

The Division also performs research and analyzes industry-wide, sectoral and company-specific issues.

Compliance Division
The Division evaluates the effectiveness of the compliance functions of financial institutions supervised by OSFI, with due regard to emerging risks. The Compliance Division conducts assessments of financial institutions' anti-money laundering and anti-terrorism financing procedures, and works closely with the Supervision Sector and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada's financial intelligence unit. The Division also acts as OSFI's liaison with other agencies on financial crime-related matters.

International Advisory Group (IAG)
The International Advisory Group provides technical assistance to countries seeking to strengthen their supervisory and regulatory practices. This Group works primarily with supervisors in the Caribbean, Africa, Asia and Latin America. IAG's responsibilities are to develop, implement and administer technical assistance programs, including hands-on advice and training, seminars and workshops.

Legal Services Division
This Division provides or obtains all legal advice and legal services required by OSFI, including interpretation of statutes, regulations, and other legal instruments and preparation of draft legislation and regulations, contracts and legal documents. It also provides advice on policy development and lends support to litigators acting on behalf of OSFI.

Legislation and Approvals Division
This Division has three principal areas of responsibility.

It contributes to the development of legislation and regulations that maintain or strengthen public confidence while recognizing the need for financial institutions to compete.

It prepares recommendations related to applications made by financial institutions for regulatory consents under the legislation and provides rulings and interpretations pertaining to legislation, regulations and OSFI guidelines.

It works with supervisory agencies in other jurisdictions to enhance ongoing cooperation and appropriate information exchange.

Private Pension Plans Division
This Division is responsible for supervising private pension plans that fall under federal jurisdiction. These include pension plans for some federal Crown corporations, banks, companies involved in interprovincial and/or international transportation, and communications companies, among others. The mandate of the Division is to protect the rights and interests of plan members by determining whether pension plans are in sound financial condition and in compliance with the requirements of legislation and OSFI policies and guidelines. The Division relies on plan administrators for good governance and prudent management of the pension plans for which they are responsible. In addition, the Division intervenes, when necessary, to ensure that appropriate corrective actions are taken.

Supervision Sector
This Sector supervises all federally regulated financial institutions. The Supervision Sector is responsible for overseeing the overall safety and soundness of the institutions by: analysing risks and identifying trends and practices within the financial services industry; developing a supervisory plan for each federally regulated financial institution that includes examining and monitoring the financial condition and effectiveness of oversight and control of those entities; and making recommendations and following up on corrective action, consistent with OSFI's early intervention mandate.

Capital Markets Risk Assessment Services
This Division evaluates the risk management practices used by financial institutions to measure and monitor capital market-related risks, conducts ongoing research into capital market-related risk issues and promotes understanding of capital markets' operations by supervisory and regulatory staff.

Credit Risk Department
This Division carries out monitoring, on-site and early intervention activities at financial institutions, with respect to credit risk and risk management practices.

Financial Conglomerates Group
This Group supervises federally regulated conglomerate deposit-taking institutions and conglomerate insurance companies, including all the federally regulated entities in each conglomerate. The responsibility for each conglomerate is assigned to a Relationship Manager, who carries out the supervisory work with a team of supervisors.

Financial Institutions Group (FIG)
This Group supervises non-conglomerate deposit-taking institutions and insurance companies. It is divided into two sections. One focuses on deposit-taking institutions (Schedule II Banks and trust and loan companies) and one supervises companies in the insurance industry.

Monitoring and Analytics Support Division
This Division is responsible for providing key metrics, including peer benchmarking, to support Relationship Managers in their monitoring activities. In addition, the Division is responsible for monitoring the health of the deposit-taking, life and property and casualty industries to identify emerging issues, trends and risks in these industries.

Regulatory and Supervisory Practices
This Division develops and recommends effective regulatory and supervisory practices and assists in the implementation of approved practices. The Division is committed to ensuring that OSFI practices are up-to-date, effective and adjusted on a timely basis to reflect developments in Canada and internationally.

Risk Measurement and Analysis Assessments Services
This Division provides expertise to assess federally regulated financial institutions' (FRFIs) risk measurement capabilities. In addition, the division prepares recommendations related to applications made by financial institutions for regulatory consent to use models in the calculation of regulatory capital.

Supervision Support Group
The Supervision Support Group provides technical support to supervisors in the areas of capital markets, credit and operational risk assessment. The group is divided into five divisions.

Audit and Consulting Services
This Division reports directly to the Superintendent and provides internal audit and consulting services to the Office. It provides independent objective assessments, information, and solution-oriented advice to help OSFI divisions achieve their business objectives efficiently and effectively in order to fulfill OSFI's mandate.

Office of the Chief Actuary
The Chief Actuary and his staff provide a range of actuarial services and advice to the Government of Canada regarding the Canada Pension Plan; the Old Age Security program; and federal public sector pension and insurance programs. In accordance with the Public Pensions Reporting Act and the Canada Pension Plan, this office prepares statutory actuarial reports on these programs for tabling in Parliament. The Office of the Chief Actuary (OCA) also provides actuarial information to government departments to assist in designing, funding and administering these programs. OCA became responsible for undertaking the annual actuarial review of the Canada Student Loans Program in 2001.

Information Holdings

Institution-Specific Classes of Records

Actuarial Services Provided to Other Departments - Government Insurance and Pension Plans
Description: Records related to actuarial valuations and cost estimates of government insurance and pension plans, including related data banks and software.
Document Types: Canada Pension Plan; Public Service Superannuation Act; reciprocal transfer agreements; Supplementary Retirement Benefits Act; Canadian Forces Superannuation Act; RCMP Superannuation Act; RCMP (dependants) pension fund; Members of Parliament Retirement Allowance Act; Judges Act; Veterans Insurance Act; Returned Soldiers Insurance Act; Public Service Health and Dental Care Plan, and miscellaneous requests for actuarial calculations.
Record Number: SFI IAP 015

Applications for Employment
Description: Records related to applications from individuals seeking employment with OSFI.
Document Types: The files include completed application forms, letters and curriculum vitae of persons seeking employment with OSFI.
Record Number: SFI ERF 001

Corporate Policy
Description: Records related to the development of legislative and regulatory policy; correspondence with departments in other jurisdictions, industry associations and professional bodies regarding, among other matters, standards to prevent money laundering and terrorism financing; industry-wide financial analysis and research, supervisory methodology and professional development; communications and public affairs including ministerial correspondence.
Document Types: Acts listed under "Legislation"; accounting and other industry-wide studies; reciprocity with, and supervisory practices of, other jurisdictions; international financial and monetary systems; nation risks and exposures.
Record Number: SFI RPP 001

Financial Institutions Deposit-taking Institutions
Description: Information on incorporation and registration, financial statements, reports required by legislation or guidelines, financial analysis and examination of financial institutions, exchanges of correspondence with financial institutions and with other jurisdictions, complaints and enquiries, and related data banks and software.
Document Types: Chartered banks; trust companies; loan companies; cooperative credit societies.
Record Number: SFI DTI 005

Financial Institutions Insurance and Pensions
Description: Information on incorporation and registration, financial statements, financial analysis and examination of financial institutions, exchanges of correspondence with financial institutions and with other jurisdictions, complaints and enquiries, and related data banks and software.
Document Types: Insurance companies and fraternal benefit societies.
Record Number: SFI IAP 007

Pension Plans Subject to the Pension Benefits Standards Act, 1985
Description: Records related to registration of plans, correspondence regarding annual information returns, funding and examination of plans, liaison with provincial authorities, enquiries regarding plans, and related valuation data bank and software.
Document Types: Private pension plans subject to Pension Benefits Standards Act, 1985.
Record Number: SFI IAP 010

Standard Classes of Records

Please see the Introduction to this publication for the descriptions of Standard Classes of Records.

Access to Information and Privacy Requests

Account and Accounting

Acts and Legislation

Administration

Administration and Management Services

Audits

Automated Document, Records and Information Management Systems

Budgets

Buildings and Properties

Business Continuity Planning

Classification of Positions

Recruitment and Staffing

Equipment and Supplies

Finance

Furniture and Furnishings

Hospitality

Human Resources

Information Technology Services

Occupational Health and Safety

Office Appliances

Official Languages

Pensions and Insurance

Personnel

Physical Security

Proactive Disclosure

Procurement and Contracting

Relocation

Salaries and Wages

Staff Relations

Training and Development

Travel

Utilities

Institution-Specific Personal Information Banks

Applications for Employment
Description: This bank serves to maintain an inventory of applications from individuals requesting employment with OSFI. The files include completed application forms, letters and curriculum vitae of persons seeking employment with OSFI.
Class of Individuals: Individuals seeking employment with OSFI.
Purpose: The bank is used to review applications of individuals requesting employment with OSFI when positions become available.
Consistent Uses: None.
Retention and Disposal Standards: Records are retained for two years and then destroyed.
RDA Number: 98/005
Related Record Number: SFI ERF 001
TBS Registration: 001685
Bank Number: SFI PPU 010

Standard Personal Information Banks

Please see the Introduction to this publication for the descriptions of Standard Personal Information Banks.

Access to Information and Privacy Requests

Automated Document, Records and Information Management Systems

Business Continuity Planning

Electronic Network Monitoring Logs

Executive Correspondence Management Systems

Hospitality

Personnel Security Screening

Relocation

Security Video Surveillance and Temporary Visitor Access Control Logs and Building Passes

Travel

Classes of Personal Information

Virtually all records held by OSFI consist of information relating to supervised financial institutions and pension plans. Some personal information may also be accumulated by OSFI in the course of conducting its supervisory function, such as information on names and functions of various company officials, information on individuals seeking to incorporate a new financial institution that would be supervised by OSFI, or information about a policyholder or depositor with a complaint against a supervised financial institution. Such personal information is stored as part of the general subject files where records are not retrieved by name of individual or other personal identifier. This form of personal information is normally retrievable only if specifics are provided concerning the financial institution, the individual, and the particular circumstances involved. The retention periods for these classes of personal information are controlled by the record schedules of the general subject files in which they are stored.

Manuals

Access to Information
Communications
Contracting Policy
Multiculturalism Policy
Official Languages
Personal Information

Additional Information

Please see the Introduction to this publication for information on access procedures under the provisions of the Access to Information Act and the Privacy Act.

For additional information about the programs and activities of the Office of the Superintendent of Financial Institutions (OSFI), please contact:

Office of the Superintendent of Financial Institutions
255 Albert Street
Ottawa, Ontario K1A 0H2

Telephone: 613-943-3950
Toll-free Telephone within Canada: 1-800-385-8647
TTY Services: 613-943-3980
Facsimile: 613-990-5591
E-mail: information@osfi-bsif.gc.ca

Reading Room

In accordance with the Access to Information Act, an area on the premises of this institution has been designated as a public reading room. The address is:

255 Albert Street, 16th Floor
Ottawa, Ontario

Office of the Superintendent of Financial Institutions Canada

Info Source

Sources of FederalGovernment Information2008