The Office of the Superintendent of Financial Institutions has released the results of a survey of industry executives regarding the regulator’s performance.

OSFI commissioned an independent research firm to survey financial institutions to assess OSFI’s performance as a prudential regulator and supervisor. It reports that the survey didn’t turn up any issues that require immediate attention, and that overall impressions of OSFI are positive in all areas.

The highest positive ratings are evident on the issue of contributing to public confidence.

There are three measures where OSFI receives somewhat lower ratings: responding to market changes or industry suggestions that regulations and guidance need updating in a timely manner; developing regulations that strike an appropriate balance between prudential considerations and the need for institutions to compete; and developing regulations that are clear and easy to understand.

Banks are more likely than insurance companies to give OSFI a positive rating for developing regulations that are easy to understand. And, they are also more likely to provide a positive rating on how proactive OSFI is in dealing with emerging issues.

The report reveals that CEOs suggested a number of risk areas that they believe should be priorities for OSFI in the next couple of years. Most often mentioned were capital requirements and liquidity, and the implementation of IFRS.

Other risks mentioned to a lesser degree, include: the regulation of complex financial instruments and products, credit risk, and a concern that Canada’s interests are not being sufficiently represented internationally, or that international regulatory solutions may jeopardize the ability of Canadian institutions to compete. Another risk is the perception that there is not sufficient harmonization of regulatory oversight between OSFI and provinces.

IE