Office of the Superintendent of Financial Institutions
OSFI is seeking feedback on draft Guideline E-4
Foreign Entities Operating in Canada on a Branch Basis, which will replace existing guidelines E-4A
Role of the Chief Agent and Record Keeping Requirements and E-4B
Role of the Principal Officer and Record Keeping Requirements.
In draft Guideline E-4, OSFI places greater emphasis on the expectations of the foreign entity operating in Canada. This better reflects the responsibilities of the foreign entity and its management in overseeing the day-to-day operations of its business in Canada. The draft Guideline also reflects new amendments to the location of records requirements contained in the
Insurance Companies Act and the
Bank Act, which will come into force in July 2021. These amendments follow the ratification of the Canada-United States-Mexico trade agreement.
Similar to OSFI’s approach taken in 2018 with the
Corporate Governance Guideline, OSFI will make consequential amendments to risk management and capital guidance to remove references to Chief Agents and Principal Officers. OSFI will release the amended guidance simultaneously with the final Guideline E-4.
Comments on draft Guideline E-4 should be submitted to OSFI by email at
email@example.com by December 18, 2020. OSFI expects to issue the final guidance in spring 2021, along with a non-attributed summary of comments received and OSFI’s response.