The Office of the Superintendent of Financial Institutions (OSFI) launched March 17 an 8-week consultation with the publication of a consultation paper, Pension Investment Risk Management.
“The paper introduces principles for the management of investment risk that OSFI believes are relevant for federally regulated pension plans. It provides a preview of principles-based expectations that OSFI may consider including in future risk management guidance. These expectations cover four areas: independent risk oversight, risk appetite and risk limits, portfolio and risk reporting and valuation policies and processes,” stated OSFI in an announcement.
Federally regulated pension plan administrators and pension industry stakeholders have been invited by OSFI to comment on the proposed regulatory expectations set out in the paper. Comments and submissions should be sent by May 13, 2022.
"Through dialogue with stakeholders, OSFI is enhancing risk management for pension plans. Feedback will help shape future guidance to support effective supervision of federally regulated pension plans, which will contribute to protecting members' pension benefits," stated Ben Gully, Assistant Superintendent, Regulation Sector.