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Assignment 1
Assignment 1
Assignment 1
It is
always believed that the financial service regulation in Canada is ready for the future challenges. The
reason for its effectiveness is financial education ,consumer protection, liquidity support , deposit
insurance, policy ,regulation and supervision. These aspect has taken the Canadian financial service
regulation one of the best in the world and it is admired by many nations.
There are total of five regulators which ensures protection to Canadian customers. they work under
ministry of finance and parliament of Canada.
It is the central bank of Canada which is responsible for promoting the financial welfare and economic in
Canada. The central bank of Canada has many responsibilities like-
Office of the superintendent of financial institution is a federal government agency which runs
independently and is responsible for bank regulation and supervises all the banks under its guidelines. It
also ensures that the pension and insurance plans are running in good financial condition and matches
the standard and guidelines set up by the authority. They also look for fraud, scams, or the activities for
terrorist funding. The main objective of OSFI( office of the superintendent of financial institution ) is the
smooth functioning of banks (to make loans and deposit available to customer), insurance policy
(company pays insurance holders) and pensione plans( payment to retired individual who has opted for
the pension plan).
The Minister of Finance's extensive authority over all matters pertaining to the financial industry is
supported by the Department of Finance. The laws governing the national finance system, as well as
those that set up every one of the federal agencies in charge of overseeing it, are under the Minister's
purview. The clear and defined mandates of financial sector institutions support financial sector
monitoring, especially financial stability.
CIDC (Canada deposit insurance corporation was established in 1967. Its main objective is to provide
financial stability by safeguarding funds and deposits in over 80 institutes. If any of its member fails, the
CIDC is held responsible for it. The member of CIDC consists of banks, credit union ( federally regulated),
loan companies and trust companies. The CIDC does not have any public funding for its operation. It
operates from the commission received from its member. CIDC offer that no one losses a single dollar.
It is an independent agency which is setup by federal government to protect financial consumers. Its
responsibilities are-
They ensure that banks and other financial agency met up their legal obligation.
they look after that there is no breach of code of conduct by any institution.
To look weather the institution has keep their public commitments fulfilled or not.
Educates the Canadians about their Rights and responsibility.
To strengthen their financial system.
They are responsible to make strategy for financial literacy.
Reference –
https://www.cdic.ca/about-us/organizational-structure/partners/financial-safety-net/oversight-of-
canadas-financial-system/#fcac