The Office of the Superintendent of Financial Institutions (OSFI) has invited directors of federally regulated financial institutions (FRFI) to participate in consultations leading up to a previously announced review of its corporate governance guideline.
“OSFI’s expectations for FRFI directors are largely set out in its Corporate Governance Guideline, last updated in 2013,” the regulator said in a statement. “However, other guidelines dealing with specific areas of risk oversight may also contain board expectations, and additional requirements are placed on individual boards through Supervisory Letters that OSFI may send to a FRFI.”
Recognizing feedback that navigating the total of multiple regulators’ guidelines for boards of directors can be challenging and burdensome, especially for smaller FRFIs, the OSFI previously announced a review “to ensure that boards can continue to be effective in their role.”
Before performing a broad consultation with all FRFIs, the OSFI will speak directly to a number of boards of FRFIs with varied size, business model, and complexity. “OSFI wishes to engage in discussions about its expectations and areas where clarification or rationalization of those expectations would have greatest impact on a board’s ability to effectively fulfill its prudential responsibilities,” the agency said. “The feedback received in these targeted discussions will be used to guide the next steps.”
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