In a speech, Superintendent Peter Routledge outlined how the Office of the Superintendent of Financial Institutions (OSFI) is pursuing regulatory efficiency while maintaining prudential safeguards, citing recent burden-reduction measures, targeted capital adjustments and a strengthened supervisory focus on integrity, cyber and national security risks. Steps highlighted include rescinding 20 outdated guidelines and advisories, setting quarterly release dates with follow-up Industry Days, reducing the scope or timing of some information requests and cancelling select pandemic-era data collections. On capital, OSFI has lowered capital charges for qualifying domestic infrastructure debt and equity, deferred the next Life Insurance Capital Adequacy Test (LICAT) revision to post-2028, and paused the Basel III output floor increase to support predictability and a level playing field. On climate risk, Routledge positioned Guideline B-15, the Standardized Climate Scenario Exercise and the Climate Risk Returns as foundational for improving quantification capabilities, while pointing to gaps including limited prior physical climate scenario analysis and a lack of precise geocoding of exposures outside the property and casualty sector. On artificial intelligence, OSFI’s prudential lens centres on integrity and security risks, third-party dependencies, data governance and model explainability with board accountability, alongside engagement through the Financial Industry Forum on AI and planned workshops on financial crime, financial stability and consumer wellbeing. OSFI plans to issue its Semi-Annual Risk Outlook in October 2025. The speech also noted ongoing work with Canadian security and intelligence agencies, supported by a dedicated Integrity and National Security team and continued classified briefings for institutions following a 2024 national security forum with the Canadian Security Intelligence Service and the Communications Security Establishment.
Office of the Superintendent of Financial Institutions 2025-09-18
Office of the Superintendent of Financial Institutions sets out regulatory efficiency measures and a dedicated Integrity and National Security team
Superintendent Peter Routledge of the Office of the Superintendent of Financial Institutions (OSFI) emphasized regulatory efficiency while maintaining prudential safeguards, highlighting burden-reduction measures, capital adjustments, and a focus on integrity, cyber, and national security risks. Key actions include rescinding outdated guidelines, adjusting capital charges, and enhancing climate risk quantification. OSFI is also addressing AI-related risks and collaborating with Canadian security agencies, with plans to release its Risk Outlook in October 2025.