OSFI Releases Draft Amended Guideline On Corporate Governance

On August 7, 2012, the Office of the Superintendent of Financial Institutions (OSFI) made available for comment a draft Guideline on Corporate Governance (Draft Guideline) for Federally-Regulated Financial Institutions (FRFIs). After industry and public comment, the Draft Guideline will update the Guideline that was originally published in 2003 (2003 Guideline). Prior to circulation, OSFI obtained preliminary comments on the Draft Guideline from select directors in the financial services sector. OSFI has requested that any industry comments be submitted by September 14, 2012.

In this bulletin, we identify and consider the key amendments proposed in the Draft Guideline. Once the Draft Guideline is finalized, these amendments will need to be considered carefully by FRFIs, as they assess whether their practices meet OSFI's new expectations and, where appropriate, plan for the adoption of new practices, policies and governance structures that reflect OSFI's new