Draft Guideline For Derivatives Sound Practices For Federally Regulated Private Pension Plans

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Jul 31, 2017

On July 31, 2017, the Office of the Superintendent of Financial Institutions (OSFI) issued for comment a revised draft derivatives guideline titled "Derivatives Sound Practices for Federally Regulated Private Pension Plans".

When finalized, the Draft Guideline will replace the 1997 guideline “Derivatives Best Practices” that first outlined expectations for federally regulated private pension plans with respect to derivative activities.

The Draft Guideline builds on the 1997 guideline by reflecting on current practices with respect to the risk management of derivatives activities and covers both exchange traded and over-the-counter (OTC) derivatives.  The Draft Guideline also sets out OSFI’s expectations for plan administrators who invest in derivatives indirectly through various types of funds, including pooled funds and hedge funds.

Review the press release and draft guideline on the OSFI's website and an article on Blakes' website.

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