ARCHIVED - Office of the Superintendent of Financial Institutions Canada

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

Table: Sources of Respendable and Non-Respendable Revenue

This table identifies revenues by program activity received from sources both internal and external to the government. For 2008-2009, OSFI’s total revenues were $100.6 million, including non-respendable revenue of $486 thousand for the collection of late and erroneous filing penalties. The respendable revenues are largely comprised of asset- or premium-based industry assessments, surcharge assessments to staged institutions, and user fees for specific services related to Regulatory Approvals. The majority of cost-recovered services under Regulation and Supervision of Federally Regulated Financial Institutions in 2006-2007 and 2007-2008 relate to implementing the internal ratings-based approach of the New Basel Capital Accord. Ongoing Basel costs are recovered through base assessments effective November 30, 2007, following the expiry of the Memorandum of Understanding with the major banks.

Respendable Revenues

OSFI matches its revenue to its operating costs. The increase in respendable revenues in 2008-2009 from the previous year is explained in the “Performance Summary” and “Expenditure Profile” sections of OSFI’s 2008-2009 Departmental Performance Report.

Respendable Revenue
($ thousands)

Program Activity	Actual 2006-2007	Actual 2007-2008	2008-2009
			Main Estimates	Planned Revenue	Total Authorities	Actual
1) Regulation and Supervision of Federally Regulated Financial Institutions
Base Assessments	60,375	70,080	76,516	76,516	76,516	81,695
User Fees and Charges	3,588	3,226	2,185	2,185	2,185	2,471
Cost-Recovered Services	4,248	3,403	915	915	915	1,401
(2) Regulation and Supervision of Federally Regulated Private Pension Plans
Pension Plan Fees	5,281	7,220	6,521	6,521	6,521	8,216
(3) International Assistance
Base Assessments	93	-	461	461	461	-
Cost-Recovered Services	1,610	1,582	1,440	1,440	1,440	1,623
(4) Office of the Chief Actuary
User Fees and Charges	145	21	55	55	55	69
Cost-Recovered Services	3,919	4,527	4,757	4,757	4,757	4,662
Total Respendable Revenue	79,259	90,059	92,850	92,850	92,850	100,137

Total 2008-2009 respendable revenues were $100.1 million, an increase of $10.0 million (11.2%) over the previous year’s total of $90.1 million. Base Assessments of $81.7 million accounted for 81.6% of total revenue, representing an increase of $11.6 million over the previous year and attributed to higher costs in the Regulation and Supervision of Federally Regulated Financial Institutions program activity, as well as decreases in both cost recovered services and in user fees and charges.

Cost recovered services revenue was $7.7 million, down $1.8 million (19.2%) from the previous year, largely due to the expiry of the Memorandum of Understanding with the major banks related to the implementation of the internal ratings-based approach of the New Basel Capital Accord. User pay and charges were $2.5 million, down $0.7 million (21.8%) from the previous year, while pension plan fees increased by $1.0 million (13.8%) to $8.2 million, driven mainly by increased pension plan membership and higher cash receipts from pension plan fee billings.

Base assessments increased from 78.0% of total revenue in 2005-2006 to 81.6% in 2008-2009, while pension plan fees increased from 4.4% to 8.2%. Both cost recovered services and user fees and charges decreased over the same time period from 10.2% to 7.7%, and from 7.3% to 2.5%, respectively.

Non-Respendable Revenues

The non-respendable revenues are all related to late and erroneous filing penalties. Effective 2002-2003, OSFI began collecting late and erroneous filing penalties from financial institutions that submit late and/or erroneous financial and corporate returns. On August 31, 2005 the Administrative Monetary Penalties Regulations (OSFI) came into force. These Regulations implement an administrative monetary penalties regime pursuant to which the Superintendent can impose penalties in respect of specific violations, as designated in the schedule to the Regulations. These Regulations incorporate the late and erroneous filing penalty regime and replace the Filing Penalties Regulations (OSFI). These penalties are billed quarterly, collected and remitted to the Consolidated Revenue Fund. By regulation, OSFI cannot use these funds to reduce the amount that it assesses the industry in respect of its operating costs.

Non-Respendable Revenue
($ thousands)

Program Activity	Actual 2006-2007	Actual 2007-2008	2008-2009
			Main Estimates	Planned Revenue	Total Authorities	Actual
1) Regulation and Supervision of Federally Regulated Financial Institutions
Filing Penalties	227	374	450	450	450	486
Total Non-respendable Revenue	227	374	450	450	450	486

• Previous Page
• Table of Contents
• Next Page