What is the main responsibility of the Office of the Superintendent of Financial Institutions (OSFI)?

What is the main responsibility of the Office of the Superintendent of Financial Institutions (OSFI)?

• A. To distribute mutual funds to investors
• B. To oversee investment dealers
• C. To supervise federally chartered financial institutions
• D. To create securities regulations

Answer: (C)

The main responsibility of the Office of the Superintendent of Financial Institutions (OSFI) is to supervise federally chartered financial institutions. OSFI is an independent federal agency that plays a crucial role in ensuring the safety and soundness of banks, insurance companies, and other federally regulated financial entities. This oversight includes evaluating their financial condition, management practices, and risk management systems to protect depositors and policyholders, and to ensure the overall stability of the financial system in Canada.

The focus of OSFI’s mandate on supervision allows it to proactively identify and mitigate risks that could impact financial institutions. By engaging in regular assessments and monitoring of operations, OSFI helps to maintain public confidence in these institutions and the broader financial system.