REGULATORY UPDATE
NEW OSFI WEBSITE
The Office of the Superintendent of Financial Institutions (OSFI) has updated its website, changed its various page addresses, and established redirects to help guide users to new content. OSFI will also maintain the current Financial Data section for the next six months. Users should refresh their email subscribers list, and must re-subscribe if they wish to continue receiving automatic alerts or updates from OSFI.
FURTHER INFORMATION ON OSFI’s NEW SUPERVISORY FRAMEWORK
The Office of the Superintendent of Financial Institutions (OSFI) has released additional information on the new Supervisory Framework, effective April 2024. OSFI’s degree of supervision will increase if risks could affect the safety and soundness of the financial system or pension-related rights and benefits. The Framework will also help OSFI respond quickly to address concerns and changes in risk. It may make decisions based on imperfect information, but accepts “the risk of engaging too early”. OSFI reiterates that its approach will be principles based, with minimal prescriptive requirements. It intends to be open and transparent when communicating with regulated entities, and will protect confidentiality.
OSFI Q&As ON UNLOCKING
On February 1, 2024, the Office of the Superintendent of Financial Institutions posted a new Q&A Document on Unlocking funds from a pension plan or from a locked-in retirement savings plan.
OSFI AIS UPDATES
The Office of the Superintendent of Financial Institutions has updated the Actuarial Information Summary (AIS) and related Guide.
FSRA AIR UPDATES
The Financial Services Regulatory Authority of Ontario has updated the Annual Information Return (AIR or Form 2) and User Guide. Substantive changes include the following:
- Adjustments to how federally regulated members are counted under the “Active Membership Information at the End of the Reporting Period” section (members are also divided by “sex” instead of “gender” (though this still means “Male” and “Female”)
- Addition of a new section for “Active Membership by Benefit/Status Type” (DC only, DB only, and DB and DC)
NEW FSRA GUIDANCE ON GENERAL ADMINISTRATIVE MONETARY PENALTIES
The Financial Services Regulatory Authority of Ontario (FSRA) has released GR0013APP – General Administrative Monetary Penalties (AMP) Guidance, effective March 11, 2024. It applies to all regulated sectors. When deciding whether to impose a General AMP, FSRA will consider the need for deterrence (specific and general) and to further compliance with statutory requirements, as well as prevention of economic benefits from non-compliance (monetary and non-monetary).
In determining AMP amounts, FSRA will treat intentional non-compliance more severely than recklessness, and recklessness more severely than negligence. Ignorance of statutory requirements will be considered reckless or negligent, and repeated non-compliance will indicate intentional misconduct. Mitigation of harm could reduce the amount of a General AMP, but cooperating with a FSRA investigation will not, as doing so is a statutory requirement. General AMPs will be greater than the actual economic benefit derived from non-compliance, and will increase if there has been a history of non-compliance. Reductions could be applied to ensure AMPs are not punitive, or as part of a settlement.
Later this year, FSRA plans to release separate guidance on Summary AMPs.
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