Canada's banking regulator has released draft guidelines on how it expects to oversee areas of risk that go beyond the financial health of institutions.
The guidelines released by the Office of the Superintendent of Financial Institutions cover areas of integrity and security, including foreign interference, and come as a result of the federal government expanding the regulator's mandate in June.
OSFI assistant superintendent Tolga Yalkin says the widened risk oversight is an important part of maintaining public confidence in financial institutions and how they operate.
The guidelines for integrity include things like ensuring the "good character" of board members and senior leadership, while security includes areas like managing physical access to buildings, servers and other key infrastructure.
Yalkin, speaking at an online press briefing, said the increased oversight into areas that aren't directly related to finances is part of an ongoing evolution of the regulator, as it is already expanding oversight into areas like climate change and digitization-related threats.
He says the regulator is also expanding its expectations on compliance with rules so that financial institutions comply not just with the letter of the laws, but with their spirit.
This report by The Canadian Press was first published Oct. 13, 2023.
The Canadian Press
