Canadian Securities Course (CSC) Level 1 Practice Exam

Who is the OSFI and what do are its functions?

1. An independent agency overseeing the arts sector

2. It regulates deposit-taking banks, insurance companies, foreign banks offices, and federally regulated pension plans

3. A governmental organization managing transportation systems

4. An energy regulatory body

The correct answer is: It regulates deposit-taking banks, insurance companies, foreign banks offices, and federally regulated pension plans

The correct answer identifies the Office of the Superintendent of Financial Institutions (OSFI) as the regulatory body responsible for overseeing deposit-taking banks, insurance companies, foreign bank branches, and federally regulated pension plans in Canada. OSFI plays a crucial role in ensuring the safety and soundness of these financial institutions, which is vital for maintaining public confidence in the financial system. This function includes supervising and regulating the financial institutions to ensure they operate in a safe and sound manner and adhere to established regulatory standards. By overseeing these entities, OSFI helps protect the interests of depositors, policyholders, pension plan members, and contributes to the stability of the Canadian financial system as a whole. The other options provided (such as an arts agency, a transportation management organization, or an energy regulatory body) do not accurately reflect OSFI's mandate or functions, which are specifically focused on financial institutions and the overall financial sector.