ARCHIVED - RPP 2006-2007
Office of the Superintendent of Financial Institutions Canada

Description

Monitor and supervise financial institutions; monitor the financial and economic environment to identify emerging issues and risks. Intervene in a timely manner to protect depositors and policyholders while recognizing that OSFI cannot eliminate the possibility of failures.

Related Priority

Priority #1

• Accurate risk assessments of financial institutions and timely effective intervention and feedback.

Priority #8

• Ensure that OSFI is in a position to review and approve applications that are submitted for approval under the Basel II capital framework.

Expected Results

Priority #1

• OSFI uses a modern supervisory process that is effective and leads to an accurate overall assessment of the risk profile and control functions of the financial institutions it regulates and supervises.
• In exercising its early intervention mandate, OSFI is proactive in intervening in problem cases in an effective and appropriate manner.

Priority #8

• OSFI effectively supports and facilitates the achievement of Basel II requirements for banks.

Performance Measure(s)

Priority #1

• Knowledgeable observers, i.e., industry executives and professionals, are of the view that OSFI uses a modern supervisory process that is effective and leads to an accurate overall assessment of the risk profile and control functions of the financial institutions it regulates and supervises.
• Knowledgeable observers, i.e., industry executives and professionals, are of the view that, in exercising its early intervention mandate, OSFI is proactive in intervening in problem cases regarding the financial institutions it regulates and supervises.

Priority #8

• Circulation and publication of supervisory discussion papers on Basel II.
• Integration of existing supervisory processes with Basel II in advance of implementation.
• Knowledgeable observers, i.e., industry executives and professionals, are of the view that OSFI uses a high quality process for implementing Basel II, including timeliness and use of appropriate flexibility and judgement, and provides clear feedback to institutions.

Description

Issuance of guidance and regulations and input into federal legislation affecting financial institutions. Contribute a regulatory perspective to accounting, auditing and actuarial standards as required. Contribute to the development of international prudential rule-making.

Related Priority

Priority #2

• A balanced, relevant regulatory framework of guidance and rules for financial institutions that meets or exceeds international minimums.

Priority #7

• Participate in and monitor international work on conceptual changes to accounting standards.

Expected Results

Priority #2

• In developing and maintaining a regulatory framework that meets or exceeds international minimums, OSFI strikes an appropriate balance between safety and soundness and the need for institutions to compete.

Priority #7

• Competitive prudent capital rules and regulatory reporting for Canadian financial institutions.
• Promotion of consistent treatment between banks and insurance companies for the same economic risks.
• Alignment with practices in other regulatory jurisdictions to ensure consistency and remove the ability for capital arbitrage.
• Maintain OSFI's strategy of using audited financial statement amounts for regulatory measurement purposes.

Performance Measure(s)

Priority #2

• Knowledgeable observers, i.e., industry executives and professionals, are of the view that OSFI's regulatory framework meets or exceeds international minimums and strikes an appropriate balance between safety and soundness and the need for institutions to compete.

Priority #7

• Through the identification and communication of well articulated positions, OSFI's prudential issues are considered by Canadian and international committees. OSFI succeeds in having high priority Canadian issues dealt with appropriately.
• Revised capital and/or accounting guidelines are drafted and issued on a timely basis and with adequate industry input.
• Knowledgeable observers, i.e., industry executives and professionals, find OSFI rules and guidance to be of high quality.
• Implementation timelines are met.

Description

Approvals include those required under the legislation applicable to financial institutions and other approvals for supervisory purposes.

Related Priority

Priority #3

• A prudentially effective, balanced and responsive approvals process.

Expected Results

Priority #3

• OSFI's regulatory approvals result in prudentially sound decisions that are timely, clear and transparent.

Performance Measure(s)

Priority #3

• Knowledgeable observers, i.e., industry executives and professionals, are of the view that OSFI's decisions, as part of the approval process, are timely, clear and transparent.

Description

Incorporates risk assessment, intervention, rule making and approvals related to federally regulated private pension plans under the Pension Benefits Standards Act, 1985. The costs for this program are recovered from pension plan fees based on the number of members in each federally regulated pension plan. The costs of this program activity are clearly tracked, however, given the size of this program (less than 5% of OSFI costs), there is only one sub-activity.

Related Priority

Priority #4

• Accurate risk assessments of pension plans, timely and effective intervention and feedback, a balanced, relevant regulatory framework, and a prudentially effective and responsive approvals process.

Expected Results

Priority #4

• OSFI uses a modern supervisory process that leads to an accurate overall assessment of the risk profile of the pension plans that it regulates.
• In exercising its early intervention mandate, OSFI is proactive in intervening in problem cases.

Performance Measure(s)

Priority #4

• Knowledgeable observers, i.e., industry executives and professionals, are of the view that OSFI uses a modern supervisory process that leads to an accurate overall assessment of the risk profile of the pension plans that it regulates.
• Knowledgeable observers, i.e., industry executives and professionals, are of the view that, in exercising its early intervention mandate, OSFI is proactive in intervening in problem cases.

Description

This program activity incorporates activities that provide help to other selected countries that are building their supervisory and regulatory capacity. The costs for this program are recovered via Memoranda of Understanding between OSFI and organizations such as the Canadian International Development Agency (CIDA) and the International Monetary Fund (IMF). The costs of this program activity are clearly tracked; however, given the size of this program (less than 5% of OSFI costs), there is only one sub-activity.

Related Priority

Priority #5

• Contribute to awareness and improvement of supervisory and regulatory practices for selected foreign regulators through the operation of an International Assistance Program.

Expected Results

Priority #5

• OSFI to contribute to the awareness and improvement of supervisory and regulatory practices for foreign regulators and jurisdictions.

Performance Measure(s)

Priority #5

• Knowledgeable observers, i.e., industry executives and professionals, are of the view that the technical assistance provided to foreign regulators and jurisdictions by OSFI is relevant and contributes to the awareness and improvement of supervisory and regulatory practices.

Description

The OCA provides a range of actuarial services, under legislation, to the Canada Pension Plan (CPP) and some federal government departments. The OCA estimates long-term expenditures, revenues and current liabilities of the CPP and federal public-sector pension and insurance plans, and is responsible for estimates of long-term future expenditures for Old Age Security programs. OCA also undertakes the actuarial review of the Canada Student Loans Program.

Related Priority

Priority #6

• Contribute to ensuring there are financially sound federal government public pension and other programs.

Expected Results

Priority #6

• Provide expert and timely advice in the form of high quality reports tabled in Parliament, in respect of the CPP.
• Provide expert and timely advice in the form of high quality reports, in respect of Public Sector Pension and Insurance Plans.
• Provide expert and timely advice in the form of high quality and timely actuarial reports, in respect of the Canada Student Loans Program.

Performance Measure(s)

Priority #6

• CPP Peer Review Board is of the view that the Chief Actuary provides expert and timely advice in the form of high quality reports tabled in Parliament, in respect of the CPP.
• Independent observers are of the view that the Chief Actuary provides expert and timely advice in the form of high quality reports on the Public Sector Pension & Insurance Plans tabled in Parliament.
• External auditor is of the view that the Chief Actuary provides expert and timely advice in the form of high quality and timely actuarial reports, in respect of the Canada Student Loans Program.