Many financial institutions, already grappling with growing regulatory demands, will find it challenging to implement a new operational risk management framework imposed by the federal financial watchdog by next summer, according to financial services experts.
banking
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OSFI’s operational risk guidelines puts pressure on financial institutions
Tags: banking -
OSFI delays implementation of new disclosure requirements
The federal financial watchdog has given Canada’s big banks an extension to implement global reforms that establish more consistent disclosure rules to allow them to focus and devote the “significant level of effort required” to implement new international accounting standards for financial instruments.The Office of the Superintendent of Financial Institutions (OSFI), globally renown as a dominant and strong regulator, originally adopted an aggressive timeline for the implementation of the revised Pillar 3 standards issued by the Basel Committee on Banking Supervision, an international banking regulator – and an equally aggressive stance towards the adoption of the International Financial Reporting Standard (IFRS) 9 Financial instruments accounting standard, according to financial services experts.
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Canadian banks dodge a bullet
When the American Bar Association Section of Business Law held its spring meeting in mid-April in Vancouver to discuss the legal impacts of the global financial crisis, Canada’s financial system, now being feted around the world for its resilience amid global financial turmoil, was once again in the spotlight, with the most powerful woman in Canadian banking holding centre-stage.
“I would have been surprised if the ABA had invited the Superintendent of the Office of Financial Institutions (OSFI) a year ago – that’s another indication that the relative status and stature of the Canadian financial system has been elevated, and it’s not unjustified,” remarked Jeffrey Graham, a partner with Borden Ladner Gervais in Toronto. (more…)
