AMF signs MOU with central bank to share info on large institutions

The Autorité des marchés financiers (AMF) and the Bank of Canada (BoC) have signed a memorandum of understanding (MOU) with respect to the monitoring of risks tied to domestic, systemically important financial institutions (D-SIFIs).

The MOU will also support their respective roles as Quebec’s prudential regulator and resolution authority, and Canada’s lender of last resort.

The agreement is “an important collaborative tool to manage systemic risk related to D-SIFIs such as Desjardins Group,” says Louis Morisset, AMF president and CEO, in a release. It also formalizes the information exchange framework between the AMF and BoC, and fosters co-operation between them.

Further expected benefits include greater industry and consumer confidence in the stability and soundness of Quebec’s financial system.

Read: Scotiabank CEO downplays concerns over Canadian debt levels

Lastly, the agreement seeks to satisfy expectations of the International Monetary Fund as part of its Financial Sector Assessment Program, with respect to managing the risk of large financial institutions as well as co-operation among federal and provincial authorities.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.