OSFI Publishes Advisory Regarding Ownership Interests in
Commodities Taken by Federally Regulated Financial Institutions
Explore:  Commodities OSFI Swaps  In response to inquiries from
federally regulated financial institutions (“FRFIs”), the Office
of the Superintendent of Financial Institutions (“OSFI”) has
published Advisory 2013-01, Business and Powers – Ownership
Interest in Commodities. The Advisory sets out principles
relevant to determining whether a transaction that involves an
FRFI taking an ownership interest in commodities generally
appertains to the business of providing financial services and
would, therefore, be permitted by FRFI statutes. The Advisory
also lists minimum prudential standards for FRFIs engaging in
activities involving such ownership interests.  FRFI statutes
generally prohibit a FRFI from dealing in goods such as
commodities. This includes a prohibition on buying and selling
commodities for a commercial purpose. However, the prohibition
would not apply where the FRFI takes an o