The Office of the Superintendent of Financial Institutions (OSFI) has published the final version of its Corporate Governance Guideline, the regulator announced Tuesday.
The revised guideline sets out OSFI’s expectations for boards of directors of federally regulated financial institutions. It updates guidance that was introduced in 2003, and revised in 2013.
OSFI held a public consultation on the revisions in 2017. Key changes include:
• providing boards with greater discretion over how they meet the guideline’s underlying principles
• more clearly drawing the line between board and senior management responsibilities; and
• consolidating all OSFI requirements for boards in one guideline.
“Corporate boards play a critical role in ensuring institutions’ safety and soundness. This update sets a high standard while providing boards with the flexibility to meet those standards in the most effective way for their institutions,” says Carolyn Rogers, assistant superintendent for OSFI, in a statement.
The guideline was first issued in 2003, and revised in 2013.