Office of the Superintendent of Financial Institutions
At the level of federal systems, the bank regulations are shared by 3 institutes covering approximately 95 percent of total assets in the banking sector of Canada. The Finance Department, the OFSI and the Canadian bank have responsible to assess the risk stability over finances and for overseeing the payment made systemically by clear systems of settlement.
The OSFI was established in the year 1987 as a federal agency under the act of OFSI aimed at supervising every financial institutions regulated by federal department, monitoring the pension plans federally regulated and providing Government of Canada with actuarial advice. The main responsibility of OSFI lies in however protecting the rights and interests of Canadians who are either depositing, part of a policy plan, have a pension plan or a financial institution based creditors. Also, the primary responsibility is inclusive contributing to a safer system of finances to promote trust in Canadians (Eggert et al, 2012).
How the OSFI performs its regulations is based on regulatory activities such as regulation and supervision. Regulation helps in enhancing safety and soundness of financial systems by evaluating risks across systems and by promoting best practices. The activities of regulation given under the legislation of financial institutes involve contribution to legislation development along with its interpretation, guidelines being issues, approving the requests of regulation from institutes regulated federally along with making sure that federal pension plans are complying with the legislative guidelines (Eggert et al, 2012). Supervision as already mentioned involves assessment of safety and supervision by OFSI is done in accordance with the framework of supervision and criteria for assessing rating.
The responsibilities under regulation sector for OSFI are divided into several categories. The initial responsibility category is accounting policy maintenance. Accounting policy is used for developing strategies and policies in relation to accounting policies internally, nationally and internationally. Actuarial is the second responsibility division used for ensuring appropriate knowledge provision related to actuarial sciences, suggestions and regulations applied to the functional regulation of OSFI (Eggert et al, 2012)