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ARTICLE · 21 SEPTEMBER 2018

OSFI Issues Final Corporate Governance Guidelines

The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Corporate Governance Guideline (CGG).

CanadaCorporate/Commercial Law

The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Corporate Governance Guideline (CGG). The CGG sets out OSFI's expectations for boards of directors of federally regulated financial institutions (FRFIs).

The CGG applies to all FRFIs other than the Canadian branch operations of foreign banks and insurance companies.

The key changes made to the CGG are as follows:

  • Providing boards with greater discretion over how they meet the principles of the CGG, taking into account their institutions' size, complexity and risk profile.
  • Clarifying the delineation between board and senior management responsibilities.
  • Drawing attention to specific areas of corporate governance that are especially important for financial institutions (e.g. risk governance), given their unique nature and circumstances.

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