Office of the Superintendent of Financial Institutions Act

Marginal note:Office established

• 4 (1) There is hereby established an office of the Government of Canada called the Office of the Superintendent of Financial Institutions over which the Minister shall preside and for which the Minister shall be responsible.

• Marginal note:Objects of Office — financial institutions

  (2) The objects of the Office, in respect of financial institutions, are

  • (a) to supervise financial institutions in order to determine whether they are in sound financial condition and are complying with their governing statute law and supervisory requirements under that law;

  • (a.1) to supervise financial institutions in order to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security, including foreign interference;

  • (b) to promptly advise the management and board of directors of a financial institution in the event the institution is not in sound financial condition or is not complying with its governing statute law or supervisory requirements under that law and, in such a case, to take, or require the management or board to take, the necessary corrective measures or series of measures to deal with the situation without delay;

  • (b.1) to promptly advise the management and board of directors of a financial institution in the event the institution does not have adequate policies and procedures to protect itself against threats to its integrity or security and, in such a case, to take, or require the management or board to take, the necessary corrective measures or series of measures to deal with the situation without delay;

  • (c) to promote the adoption by management and boards of directors of financial institutions of policies and procedures designed to control and manage risk; and

  • (d) to monitor and evaluate system-wide or sectoral events or issues that may have a negative impact on the financial condition of financial institutions.

• Marginal note:Objects of Office — pension plans

  (2.1) The objects of the Office, in respect of pension plans, are

  • (a) to supervise pension plans to determine whether they meet the minimum funding requirements and are complying with the other requirements of the Pension Benefits Standards Act, 1985 and the Pooled Registered Pension Plans Act and their regulations and supervisory requirements under that legislation;

  • (b) to promptly advise the administrator of a pension plan in the event that the plan is not meeting the minimum funding requirements or is not complying with other requirements of the Pension Benefits Standards Act, 1985 or the Pooled Registered Pension Plans Act or their regulations or supervisory requirements under that legislation and, in such a case, to take, or require the administrator to take, the necessary corrective measures or series of measures to deal with the situation in an expeditious manner; and

  • (c) to promote the adoption by administrators of pension plans of policies and procedures designed to control and manage risk.

• Marginal note:Protection of depositors, etc.

  (3) In pursuing its objects, the Office shall strive

  • (a) in respect of financial institutions, to protect the rights and interests of depositors, policyholders and creditors of financial institutions, having due regard to the need to allow financial institutions to compete effectively and take reasonable risks; and

  • (b) in respect of pension plans, to protect the rights and interests of members of pension plans, former members and any other persons who are entitled to pension benefits or refunds under pension plans.

• Marginal note:Factors affecting financial institutions

  (4) Notwithstanding that the regulation and supervision of financial institutions by the Office and the Superintendent can reduce the risk that financial institutions will fail, regulation and supervision must be carried out having regard to the fact that boards of directors are responsible for the management of financial institutions, financial institutions carry on business in a competitive environment that necessitates the management of risk and financial institutions can experience financial difficulties that can lead to their failure.

• Marginal note:Factors affecting pension plans

  (5) Notwithstanding that the regulation and supervision of pension plans by the Office and the Superintendent can reduce the risk that pension plans will fail to pay the expected benefits, regulation and supervision must be carried out having regard to the fact that administrators of pension plans are responsible for the management of the pension plans and that pension plans can experience financial and funding difficulties that can result in the reduction of those benefits.