The most significant update to OFSI’s supervisory approach in 25 years officially went into effect on April 1st. This new supervisory framework was first publicly  released on February 7, after giving Financially Regulated Financial Institutions (FRFIs) a preview presentation to the industry last year on November 9, 2023.  

The new framework intends to provide enhanced rating information and tailored supervision based on an institution’s size and complexity, enabling timelier interventions while aiming to reduce unnecessary burdens.   

Key changes to the framework include (i) an expanded risk rating scale to enable earlier indication of changes; (ii) more information for FRFIs on risk drivers; (iii) new risk categories (business risk, financial resilience, operational resilience, and risk governance); and, (iv) the inclusion climate risk.    

The new framework was initially announced in the 2023-24 Annual Outlook and OSFI’s transformational Blue Print Initiative.