Office of the Superintendent of Financial Institutions (OSFI)

What OSFI is

The Office of the Superintendent of Financial Institutions (OSFI) is an independent federal agency that supervises and regulates Canada’s federally regulated financial sector. Its remit covers banks, insurance companies, trust and loan companies and federally regulated private pension plans.

Mission and objectives

OSFI’s core mission is to protect depositors, policyholders, creditors and pension plan members and to maintain public confidence in the Canadian financial system — while allowing financial institutions to compete and take reasonable risks. It promotes a regulatory framework focused on sound risk management and the resilience of individual institutions and the financial sector as a whole.

Scope and key functions

• Supervision and regulation of federally regulated banks, insurers, trust and loan companies, and private pension plans subject to federal oversight.
• Ongoing monitoring and evaluation of institutions’ financial health and of system-wide or sectoral risks that could affect stability.
• Setting and enforcing minimum capital and funding requirements for institutions and pension plans.
• Requiring management, boards or plan administrators to take remedial action when deficiencies are identified.
• Issuing guidance, advisories and supervisory expectations (for example, cybersecurity guidance to address emerging threats).
• Serving as an information hub for regulated entities on supervisory developments and risks.

Powers and tools

OSFI conducts regular examinations and reviews, assesses actuarial and financial reports, and can mandate corrective measures. It does not act as a deposit insurer or as a resolution authority to keep failing banks open, but its supervisory work and early interventions aim to reduce the likelihood of failures and limit losses.

Relationship with CDIC and other agencies

Deposit insurance in Canada is provided by the Canada Deposit Insurance Corporation (CDIC). OSFI supervises the safety and soundness of deposit-taking institutions; CDIC provides deposit protection for eligible deposits. OSFI also works with other domestic and international bodies on regulatory cooperation and financial stability matters.

Office of the Chief Actuary

Operating within OSFI is the Office of the Chief Actuary, which delivers actuarial valuations and advisory services to the Government of Canada, supporting pension and benefit programs and related policy decisions.

History and governance

• Founded July 2, 1987, by consolidating the Department of Insurance and the Office of the Inspector General of Banks.
• A 1996 law further clarified OSFI’s mandate to minimize losses to individuals and maintain confidence in the financial system.
• OSFI reports to the Minister of Finance and collaborates with other federal financial sector organizations.

Leadership

The Superintendent of Financial Institutions leads OSFI. The current Superintendent, appointed in 2021, serves a multi-year term and represents Canada in international supervisory forums.

Notable activities

OSFI periodically issues advisories and supervisory expectations on emerging risks — for example, warnings to institutions about heightened cybersecurity threats and guidance on incident reporting. These communications shape how regulated entities manage operational, cyber and prudential risks.

Key takeaways

• OSFI is Canada’s federal supervisor for banks, insurers, trust/loan companies and federally regulated pension plans.
• Its mandate is to protect stakeholders and preserve public confidence by promoting sound risk management and financial resilience.
• Deposit insurance is provided by CDIC; OSFI’s role is supervisory rather than as the insurer.
• OSFI uses examinations, guidance and mandated corrective action to address deficiencies and systemic risks.