• Federal Financial Institutions Legislative and Regulatory Reporter
  • November 7, 2017
  • 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]

    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


    This Reporter is prepared as a service for our clients. It is not intended to be a complete statement of the law or an opinion on any subject. Although we endeavour to ensure its accuracy, no one should act upon it without a thorough examination of the law after the facts of a specific situation are considered.