Perspectives

RAPPORT SUR LA LÉGISLATION ET LA RÉGLEMENTATION APPLICABLES AUX INSTITUTIONS FINANCIÈRES FÉDÉRALES

Le Reporter (publié en anglais seulement) est un sommaire mensuel de l'évolution des législations et réglementations internationales et fédérales canadiennes qui sont pertinentes pour les institutions financières de régime fédéral au Canada. Il ne traite pas de l'évolution législative ou réglementaire des services financiers provinciaux, bien que BLG suive de près tout changement dans ce secteur et puisse, sur demande, fournir de l'information à ce sujet. De plus, les modifications de nature purement technique et administrative (comme celles qui sont apportées aux formulaires de rapport) ne sont pas traitées.

Septembre 2017

Institution

Published

Title and Brief Summary

Status

OSFI

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

Published
September13, 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.

EffectiveJanuary1, 2019for standardized institutions

EffectiveNovember1, 2017for all other institutions

Disclaimer

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.

  • By: Jeffrey S. Graham