OSFI looks to increase transparency in rulings

The Office of the Superintendent of Financial Institutions (OSFI) is attempting to answer concerns about its transparency by releasing its rulings. The rulings, which can affect any of the federally regulated financial institutions (FRFI) under OSFI’s authority including insurers, will not contain the names of institutions involved.”This initiative is in keeping with OSFI’s objective to enhance the transparency of its activities and explain the rationale behind the actions it takes,” says OSFI superintendent Nick Le Pan.The first set of rulings released includes some that reference the Insurance Act, and deal with issues of capital raising activities.However, Le Pan is quick to point out that the rulings, while a source of information, do not replace the need to apply for permission for transactions. He adds that the rulings may be superceded at some point by amendments to legislation made after a ruling.