Canada’s financial regulator, the Office of the Superintendent of Financial Institutions, has laid out its expectations for how the banks and insurance companies it oversees should develop and maintain cultural norms that support sound decision making and risk management. Leaders must exemplify their organizations’ values and hold themselves and others accountable, OSFI stated. (The Logic)

Talking point: The role of culture in supporting—or undermining—risk management has been in the spotlight since TD Bank pleaded guilty to U.S. anti-money-laundering failures in October, agreeing to pay more than US$3 billion in penalties and operate under an asset cap. Strong cultural norms help mitigate compliance risks and ensure “that some of those risks don’t come home to roost,” OSFI official Tolga Yalkin told reporters Thursday. Meanwhile, climate-focused shareholder advocacy group Investors for Paris Compliance is pressuring TD to review its governance practices.