The Office of the Superintendent of Financial Institutions (OSFI) was established by legislation that merged the Department of Insurance and the Office of the Inspector General of Banks. This legislation established a single agency responsible for the regulation and supervision of Federally Regulated Financial Institutions (FRFIs). OSFI is also responsible for monitoring federally regulated pension plans. Other financial institutions and pension plans are provincially incorporated and are therefore not regulated by OSFI.

FRFIs include all banks, all federally incorporated or registered insurance, trust and loan companies, cooperative credit associations, and fraternal benefit societies. Although legislation, regulation, guidelines and policy statements affect how FRFIs conduct their business, day-to-day operations are not subject to government oversight. FRFI legislation and regulations are available at the Department of Justice's WebSite.

OSFI does not regulate the Canadian securities industry.

In Canada, the regulation of the securities business is a provincial responsibility.

Regulation of primary and secondary securities markets has important consequences for investors.

The primary market is the market for new issues of securities, typically involving underwriters and corporate issuers.

The secondary market is the market where previously issued securities are traded, including both the organized exchanges and the over-the-counter (OTC) network. The OTC market is a network of securities dealers for the trading of securities not listed on other exchanges.

Without the existence of an extensive investment dealer community and efficient and orderly security markets, the costs and risks involved in the issuing of securities would rise.

Cash and Cash Equivalents

1) What does the Bank of Canada do?

The Bank of Canada (the Bank) is Canada's central bank. It is the banker's bank. The Bank of Canada does not receive deposits from consumers. According to the Bank of Canada act the Bank has four primary functions: