Which of the following entities is primarily responsible for the prudential regulation of federally regulated financial institutions, including major banks, and sets guidelines such as B-20 for mortgage underwriting?

Question: Which of the following entities is primarily responsible for the prudential regulation of federally regulated financial institutions, including major banks, and sets guidelines such as B-20 for mortgage underwriting?

Answer options:

• Financial Services Regulatory Authority of Ontario (FSRA) ✅ Office of the Superintendent of Financial Institutions (OSFI)
• Canada Deposit Insurance Corporation (CDIC)
• Financial Consumer Agency of Canada (FCAC)

Correct answer: Office of the Superintendent of Financial Institutions (OSFI)

Explanation: OSFI is an independent agency of the Government of Canada responsible for supervising and regulating all federally regulated financial institutions and pension plans, including setting capital requirements and lending guidelines like B-20.