2       Introduction

This chapter provides an understanding of the OFS REG REP OSFI application and its scope.

Topics:

·        Overview

·        OFSAA Regulatory Reporting Architecture

·        Scope

Overview

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987 to contribute to the safety and soundness of the Canadian financial system. OSFI supervises and regulates federally registered banks and insurers, trust and loan companies, as well as private pension plans subject to federal oversight. It provides a regulatory framework of guidance and rules that meets or exceeds international minimums for financial institutions.

In addition to issuing guidance, OSFI provides input into the development of federal legislation and regulations affecting federally regulated financial institutions (FRFIs), and comments on accounting, auditing, and actuarial standards development, and determines how to incorporate them into our regulatory framework. It regulates by developing rules, interpreting legislation and regulations, and providing regulatory approvals types of transactions.  It also contributes to new accounting, auditing, and actuarial standards.

OSFI supervises by analyzing financial and economic trends to identify emerging issues that could adversely affect institutions.  It assesses an institution’s financial condition, material risks, and the quality of its governance, risk management, and compliance. It reports to Parliament through the Minister of Finance on various formal and informal processes that are used to ensure the effective execution of OSFI’s mandate. For example, the Financial Institutions Supervisory Committee, whose members are OSFI, the Department of Finance, the Bank of Canada, the Canada Deposit Insurance Corporation, and the Financial Consumer Agency of Canada, meets at least quarterly to share information on matters relating to the supervision of federally regulated financial institutions.  

OSFI also works with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which is responsible for ensuring compliance with Canada’s Proceeds of Crime (money laundering) and Terrorist Financing Act.

OFSAA Regulatory Reporting Architecture

This interface connects the Oracle FSDF to Lombard Risk. As one can see in the Architecture (Figure 1), Data flows from OFSAA to Lombard Risk.

Figure 1: Regulatory Reporting Solution Architecture

OFSDF is an analytical data warehouse platform for the Financial Services industry. OFSDF combines an industry data model for Financial Services along with a set of management and infrastructure tools that allows Financial Services Institutions to develop, deploy, and operate analytical solutions spanning key functional areas in Financial Services, including:

1.     Enterprise Risk Management

2.     Enterprise Performance Management

3.     Customer Insight

4.     Financial Crime and Compliance Management

OFSDF is a comprehensive data management platform that helps institutions to manage the analytical data life cycle from sourcing to reporting and business intelligence (BI) using a unified, consistent platform and toolset.

AgileREPORTER is a form and workflow tool that enables both creation and submission of regulatory returns. AgileREPORTER addresses the financial reporting requirements of both domestic and international banks and financial institutions by automating compliance with mandated reports to central banks, regulatory agencies. AgileREPORTER works easily with multiple sources of information as it standardizes data elements and automates regulatory report production in prescribed templates with the associated workflow for automatic submission. It is a reliable and efficient infrastructure to compile, generate, and submit regulatory reports. It collects data from the universe (not just OFSAA Results). It provides automated repeated manual adjustments, variance analysis, and validation checks.

The solution provides a prebuilt interface or integration between FSDF and AgileREPORTER. With this integration, end-user can automate end to end reporting processes covering data preparation to the last mile of reporting.

Scope

Oracle Financial Services Regulatory Reporting for Office of Superintendent of Financial Institutes, Canada (OFS REG REP OSFI) covers the following regulatory reports for specified release as mentioned in the table:

Table 2: Scope of Regulatory Reports and Schedules