The Office of the Superintendent of Financial Institutions is launching an eight-week consultation on the management of investment risk by federally regulated pension plans.

Along with a discussion paper, the consultation’s objective is to ensure the OSFI’s pension investment risk management guidance reflects and accommodates the circumstances of all pension plans, regardless of size, degree of investment sophistication or risk profile.

Read: OSFI, FSRA set out six recommendations for strengthening CAP guidelines

The paper will provide a preview of principles-based expectations that the OSFI may consider including in future risk management guidance, according to a press release, which noted the paper covers areas such as independent risk oversight, risk appetite and risk limits, portfolio and risk reporting and valuation policies and processes.

“Through dialogue with stakeholders, OSFI is enhancing risk management for pension plans,” said Ben Gully, assistant superintendent for the regulation sector at the OSFI, in the release. “Feedback will help shape future guidance to support effective supervision of federally regulated pension plans, which will contribute to protecting members’ pension benefits.”

The OSFI is welcoming comments and submissions until May 13.

Read: ACPM calling on OSFI to address funding asymmetry in DB pension regulation