The rapid adoption of artificial intelligence tools in financial industries represents an evolving risk to institutional investors, according to a new report by the Office of the Superintendent of Financial Institutions. The financial regulator noted rapid developments in the generative AI space have resulted in an increased adoption of AI tools in financial industries. While […]
Sustainable investing is entering a phase where a concrete focus on execution as well as real-world impact and metrics are becoming essential, said Kevin Quinlan, senior director of climate and client strategy at SLC Management, during a session at the Canadian Investment Review’s 2024 Endowment & Foundation Investment Forum in June. “Going beyond just the […]
A growing wave of opposition to environmental, social and governance factors has turned life in the sustainable finance industry into something of a roller coaster over the last couple of years. But a little turbulence is to be expected, says Alyson Slater, managing director of sustainable investment at Manulife Investment Management, encouraging institutional investors to […]
Information technology risk has become a more prevalent concern in recent years, so it comes as no surprise that Canadian pension regulators are focused on ensuring that plan administrators manage this risk effectively. IT risk is associated with an entity’s IT infrastructure as a whole, including risk caused by error or malfunction, as well as […]
While it’s impossible to predict exactly how pension case law will evolve in future, one can offer an educated guess at some legislative developments and other issues that may confront pension plan sponsors and administrators in the coming year. Risk management Plan sponsors can expect a continued focus on risk management as a key part […]
The Pension Investment Association of Canada is calling on the B.C. Financial Services Authority to reconsider implementing new standards for climate-related risks analysis guidelines, noting it would be extremely challenging for most pension plans to meet a potential new climate and transition risk review system. In an open letter, the PIAC recommended a principles-based approach to […]
If the federal government scraps its rule restricting Canadian pension funds from holding more than 30 per cent of the voting shares of investee corporations, pension plan sponsors and other investment organizations could increase their holdings in high-performing assets, have greater oversight and accountability of their assets and see a decrease in fees for private equity, according […]
In its 2023 fall economic statement, the federal government said it will consider removing the rule that restricts Canadian pension funds from holding more than 30 per cent of the voting shares of most corporations. The move is part of an effort “to create an environment that encourages and identifies more opportunities for investments in […]
The Office of the Superintendent of Financial Institutions’ proposed cybersecurity incident reporting standard could unintentionally lead to duplication and increased risk if it doesn’t reflect differences in technology and risks faced by federally regulated financial institutions and federally regulated pension plans, according to the Association of Canadian Pension Management. While financial institutions’ systems are critical to the functioning of […]
Climate and cybersecurity are the leading risk factors concerning Canadian pension plan administrators, according to a pension lawyer. Susan G. Seller, a pension and benefits lawyer at Bennett Jones LLP, adds third-party arrangements and commercial real estate risks round out the most pressing categories for federally regulated pension plans. “We’re living in a time where […]