Week 11 Confederation Life and RBC

Regulaon includes helping to develop and interpret

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Unformatted text preview: ederal and provincial governments share jurisdic)on over the financial services sector. •  Banks are regulated by the federal Bank Act (way back in Week 1). •  90% of life and health insurance companies are regulated under the federal Insurance Companies Act, but are also required to follow regula)ons of each province they do business in. Regulatory Oversight and Repor)ng of the Canadian Financial Services Sector •  The federal government oversees financial ins)tu)ons through the Office of the Superintendent of Financial Ins)tu)ons (OSFI). •  This is mainly on deposit taking ins)tu)ons, insurance companies and private pension plans. Office of the Superintendent of Financial Ins)tu)ons (OSFI) •  OSFI was established in 1987. •  It was created through the merger of two other agencies – The Inspector General of Banks (OIGB) and the Department of Insurance (DOI). •  The OIGB was established in the mid- 1920’s, and the DOI was established in the very late 19th century. Office of the Superintendent of Financial Ins)tu)ons (OSFI) •  The government in 1984 stated its inten)on to review Canada’s financial system. •  Rapid change in the global financial system required that Canada modernize its oversight. •  The failure of the Canadian Commercial Bank and the Northland Bank in 1985 further spurred the need for change. Office of the Superintendent of Financial Ins)tu)ons (OSFI) •  The OFSI has two real func)ons: regula)on and supervision. •  Regula)on includes helping to develop and interpret legisla)on with regards to the financial services industry, issuing guidelines to financial service businesses and reviewing and approving requests from ins)tu)ons regulated by the overarching legisla)on. Office of the Superintendent of Financial Ins)tu)ons (OSFI) •  Supervision is the assessing of the soundness of the ins)tu)ons and pension plans, to make sure that they retain sufficient capital to operate in an effort to protect the rights and interests of all of those whose wealth is being managed by th...
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