Office of the Superintendent of Financial Institutions
Today, the Office of the Superintendent of Financial Institutions (OSFI) publishes its final revised Guideline
B-10: Third-Party Risk Management which sets out enhanced third-party risk management expectations for federally regulated financial institutions (FRFIs). A non-attributed
summary of comments received and OSFI’s responses are available.
The financial industry has long made use of third-party arrangements to introduce efficiency, drive innovation, manage shifting operational needs, and improve service. Increasingly, FRFIs are relying on an expanded third-party ecosystem to deliver more of their critical activities. This increases the likelihood that these arrangements could impact a FRFI’s operational and financial resilience.
Guideline B-10 applies to all FRFIs, excluding foreign bank branches and foreign insurance company branches, which are covered by
Guideline E-4: Foreign Entities Operating in Canada on a Branch Basis. OSFI is currently reviewing Guideline E-4 and expects to issue clarifications later this year aimed at ensuring risks related to Canadian operations are appropriately managed within the domestic legal and regulatory frameworks.
OSFI will hold an information session for members of industry on May 18, 2023 from 1 p.m. to 2:30 p.m. ET. To register visit: Information session B-10 before May 17 at noon.