The Reporter provides a monthly summary of Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions. It does not address Canadian provincial financial services legislative and regulatory developments, although this information is tracked by BLG and can be provided on request. In addition, purely technical and administrative changes (such as changes to reporting forms) are not covered.

September 2017



Title and Brief Summary



[Banks, Bank Holding Companies, Federally Regulated Trust and Loan Companies, Cooperative Retail Associations]

Published September 13, 2017

Enterprise-Wide Model Risk Management Guideline

This model risk guideline takes an enterprise-wide view that describes common policies and processes applicable to any model that could materially impact the risk profile of an institution.

Guideline E-23 outlines prudent practices for internal model development, review, approval, use and modification. It also incorporates several revisions based on comments received from industry stakeholders during the public consultation period, which began in December 2016.

OSFI excludes foreign bank branches from the scope of the Guideline, since it believes that it has the capacity to assess model risk management of these institutions within existing supervisory processes. However, it expects principal officers of foreign bank branches to be accountable for having appropriate risk controls for their models, where material.

Effective January 1, 2019 for standardized institutions

Effective November 1, 2017 for all other institutions