The Office of the Superintendent of Financial Institutions (OSFI) has released a revised version of its Guideline on Corporate Governance, which was first issued in 2003.
The new guideline sets out the OSFI’s expectations on corporate governance at federally regulated financial institutions. It’s the result of a comprehensive consultation process that began when a draft document was shared with stakeholders in August 2012.
In addition to the guideline, there’s also a letter, summary of comments received and the OSFI’s responses to them available. Find those here.
“Strong corporate governance is essential to the safety and soundness of Canada’s financial institutions,” says Julie Dickson, Superintendent.
She adds, “The revised guideline will help boards of directors and senior management to identify and manage risks being undertaken by their financial institutions. This updated guideline reflects OSFI’s supervisory observations, which are the result of a cross-system review and enhancements to international best practices.”
The most significant changes to the guideline are in the areas of board effectiveness. These are being made to its composition and competencies, to risk governance guidelines and to the established roles of chief risk officers and audit committees.