The Office of the Superintendent of Financial Institutions is launching a three-month consultation on risks and other considerations regarding technological advancements impacting Canada’s financial sector.
Along with a discussion paper, the consultation’s objective is to ensure federally regulated financial institutions and pension plans have solid strategies to manage non-financial risks. According to the agency, while rapidly advancing technology and digitization have been helpful to Canadian financial institutions, their swift adoption can be risky if not properly managed and understood.
The paper focuses on the key technological areas of cyber security, advanced analytics and the use of third-party services like cloud computing.
“Digital technology continues to transform the financial sector,” said Ben Gully, assistant superintendent for the regulation sector at the OSFI, in a press release. “The pace of change has only increased since the pandemic began. This consultation will help OSFI to refine its regulatory and supervisory framework in a complex, rapidly changing digital world. The contributions received and the discussions that will occur will support effective risk management and enhance resilience in the Canadian financial sector.”
The OSFI is welcoming comments and submissions on the discussion paper from industry stakeholders, academics and technological experts until Dec. 15, 2020.