New proposed corporate governance guidelines would make board member and executive appointments more difficult for federally-regulated financial institutions.
In the eyes of the OSFI, not just anyone can run the banks.
As part of its Corporate Governance Guidelines (CGG), published last January, the OSFI (Office of the Superintendent of Financial Institutions) is proposing that federally-regulated financial institutions (FRFIs) notify the regulator before appointing new board members or executives to ensure the suitability of candidates.
Early notification, submitted in writing, would be required 30 days prior to a senior management appointment and immediately after a nominee is identified for election or appointment to a director’s positions. Submissions would include the candidate’s curriculum vitae, the rationale behind the selection, the date of the intended appointment, a draft of the appointment's public announcement, and results from the Responsible Persons assessment (in compliance with the Guidelines and Background Checks on Directors and Senior Management report.)
With larger FRFIs, the OSFI would also request a meeting with the new board or senior management member within six months of the appointment to ensure ongoing supervision and open communication.
On an as-needed basis, the OSFI would like to increase communication with FRFIs through discussions with boards, board committees, senior management on a variety of topics including board renewal and succession planning.
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As part of its Corporate Governance Guidelines (CGG), published last January, the OSFI (Office of the Superintendent of Financial Institutions) is proposing that federally-regulated financial institutions (FRFIs) notify the regulator before appointing new board members or executives to ensure the suitability of candidates.
Early notification, submitted in writing, would be required 30 days prior to a senior management appointment and immediately after a nominee is identified for election or appointment to a director’s positions. Submissions would include the candidate’s curriculum vitae, the rationale behind the selection, the date of the intended appointment, a draft of the appointment's public announcement, and results from the Responsible Persons assessment (in compliance with the Guidelines and Background Checks on Directors and Senior Management report.)
With larger FRFIs, the OSFI would also request a meeting with the new board or senior management member within six months of the appointment to ensure ongoing supervision and open communication.
On an as-needed basis, the OSFI would like to increase communication with FRFIs through discussions with boards, board committees, senior management on a variety of topics including board renewal and succession planning.
Related stories:
OSFI changes could hit independent advisors
Manulife gets green light to offer federal PRPPs
OFSI chief will not seek second term
