Quoting a letter from OSFI Superintendent Julie Dickson
(May, 2011) – “As the core document for OSFI’s annual planning cycle, it describes our priorities for the planning period and outlines key challenges and risks. Our main areas of focus will include:
Addressing External Risks
OSFI’s long-term priority was updated in 2010 to better reflect the current economic environment and remains focused on anticipating and addressing risks from economic uncertainty and regulatory change. We are continuing to effectively monitor and manage the more dynamic, increasingly complex regulatory and financial environments, both internationally and domestically, while the volume and pace of new issues are increasing.
Risks Emanating from Regulatory Reform
We will continue to participate actively in international and domestic discussions to identify and respond to key issues arising from global financial events and adopt new proposals that strengthen our regulatory system. We will be paying particular attention to the implementation effects of international accounting rule changes (International Financial Reporting Standards) and of Basel III capital adequacy requirements. In addition, OSFI will continue to work on reform of the capital framework for insurance companies and moving towards a more market consistent approach.
Addressing Internal Risks
We will continue to implement our Human Resources Strategy and identify changing human resource requirements to ensure the necessary skills and expertise are maintained, including individual learning and development (training) plans to ensure our employees are equipped to deal with their work plans and with the impact of emerging risks.
We also continue to implement our Information Management and Information Technology (IM/IT) Strategy and related Information Technology Renewal initiative to support our evolving supervisory and regulatory activities.
With the global economy adjusting to new rules and continued uncertainty, the coming years will represent a new set of challenges to the financial institutions and pension plans subject to our oversight. Through our regulatory and supervisory oversight practices, OSFI will be focusing on anticipating and addressing risks resulting from regulatory changes and creating higher standards for effective risk management and governance.”
Here is a link to the OSFI Plan and Priorities for 2011-2014.
OSFI is an independent agency of the Government of Canada. It reports to the Minister of Finance. For more information visit www.osfi-bsif.gc.ca.