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Prudential Regulation

Prudential Regulation
Prudential Regulation
Expertise / Practices / Financial Services Regulatory / Prudential Regulation

Prudential regulation aims to protect financial institutions from risks that could jeopardize their financial health and the financial interests of their clients. As a safeguard, regulators are keenly interested in identifying and acting on potential problems before they can significantly impact financial institutions. For financial institutions, it’s important to understand how to avoid or minimize damaging outcomes and difficult regulatory interactions by being well prepared.
We have the resources and best-in-class legal expertise to assist with all aspects of the prudential regulation of federal and provincial financial institutions, including banks, insurance companies, trust and loan companies, credit unions, and centrals. Our lawyers are well-informed on the latest market trends and changes in legislation that could negatively affect businesses, and are skilled in advising on all matters impacting safety and soundness, including:

  • Capital and liquidity requirements
  • Investment and business restrictions

  • Self-dealing rules

  • Recovery and resolution plans

  • Staging-related issues

  • Corporate governance

  • Risk management

  • Reorganizations driven by prudential considerations and regulatory expectations

To better represent our clients, we have formed deep relationships with the federal and provincial regulatory bodies. These include the Office of the Superintendent of Financial Institution (the prudential regulator of Canadian banks and other federally regulated financial institutions), the Financial Services Regulatory Authority of Ontario, the Autorité des marchés financiers of Quebec and the Financial Services Authority of British Columbia. Our lawyers also have a comprehensive understanding of the guidance published by international standard-setting organizations, including the Basel Committee on Banking Supervision and the Financial Stability Board, and advise financial institution clients and others on their implementation in Canada.

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