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ARTICLE · 15 JULY 2026

OSFI Modernizes Approval Framework For Certain New Entrants

The Office of the Superintendent of Financial Institutions has introduced a streamlined approvals framework that offers a faster, more predictable pathway for certain applicants to become federally regulated financial institutions. This new process allows eligible entities to enter the federal regime earlier without lengthy pre-licensing remediation, as long as risks can be properly assessed and mitigated from the start.

CanadaFinance and Banking

The Office of the Superintendent of Financial Institutions (OSFI) has launched a streamlined approvals framework designed to provide a more predictable and efficient path for targeted applicants seeking to become federally regulated financial institutions. This new approach enables earlier entry into the federal regime without requiring extended pre-licensing remediation, provided that risks can be effectively assessed and mitigated at the outset.

Eligibility for Streamlined Approvals Process

The streamlined approvals process is available to:

  • Provincial credit unions (PCU) seeking to continue as federal credit unions; and
  • Entities with technologically innovative or emerging bank models (such as fintechs or crypto-asset custodians) seeking to incorporate as a bank or federally regulated trust and loan company.

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