The Office of the Superintendent of Financial Institutions (OSFI) on Tuesday issued draft changes to its Corporate Governance Guideline for public consultation. The revisions aim to update and consolidate OSFI’s expectations for boards of federally regulated financial institutions (FRFIs)
The revised guideline “is designed to ensure that OSFI’s guidance in this area, “continues to reflect evolving governance standards and enables boards to focus on key risks and execute their oversight roles efficiently,” OSFI says in a statement.
The regulator has been consulting with the industry on the proposed new guidance since June, OSFI says, and the draft changes reflect industry input.
Among other things, the draft provides boards with more discretion in how they meet OSFI’s corporate governance principles. OSFI says the revised guideline focuses more on what boards should achieve, rather than how they go about meeting those objectives.
It also clarifies the distinctions between board and senior management responsibilities, and consolidates board requirements in one place.
The draft changes out for public comment until Dec. 22. OSFI aims to issue a final version in the spring of 2018.