On November 7, 2022, the Office of the Superintendent of Financial Institutions (OSFI) issued new guidelines for Assurance on Capital, Leverage and Liquidity Returns. These guidelines apply to the capital returns of all federally regulated insurers (FRIs) and to the capital, leverage and liquidity returns of all federally regulated deposit-taking institutions (DTIs).
OSFI’s assurance expectations include:
1. Internal audit opinion (fiscal 2023 implementation) on key regulatory returns including related controls and processes.
2. Senior management attestation (fiscal 2024 implementation) on key regulatory returns following an internal review of the returns to (i) enhance internal governance and controls around key regulatory returns and (ii) provide assurance on the accuracy and completeness of these returns.
3. External audit opinion (fiscal 2025 implementation) on the numerator and denominator of key regulatory ratios.
OSFI expects these assurance assessment responsibilities to be implemented by qualified individuals with appropriate skills and knowledge of the business and relevant regulatory requirements. If you would like to discuss approaches and how we might assist you in complying with the new guidelines, please reach out.
Comments