(September 14 – 14:20 ET) – The Canada Deposit Insurance Corporation has released a consultation paper proposing updated Standards of Sound Business and Financial Practices.
This latest paper builds on an earlier paper, released in January 2000, which laid out a framework for modernizing the existing standards to in light of modern risk-management challenges faced by financial institutions.
The draft standards emphasize the need for good governance, effective strategic management, proactive risk assessment, and an embedded control environment. The proposed reporting process aims to blend with the operations of member institutions that have appropriate policies and processes in place as well as with the risk-based approach to supervision being adopted by the Office of the Superintendent of Financial Institutions.
“The draft standards strike a balance between our mandate and our desire to avoid imposing an undue reporting burden on members,” said J.P. Sabourin, CDIC’s president and CEO. “We owe much to the very valuable input we have received from members, their associations, regulators, examiners, and others since the release of our first consultation paper.”
CDIC will accept comments on the current paper until October 31. CDIC expects to have the new standards in place early in 2001.
-IE Staff