OSFI's Quarterly Release: reinforcing commitment to risk-responsive regulation Français

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Office of the Superintendent of Financial Institutions

Sep 11, 2025, 08:30 ET

OTTAWA, ON, Sept. 11, 2025 /CNW/ - Today, the Office of the Superintendent of Financial Institutions (OSFI) is announcing several updates to guidelines aimed at focusing OSFI's response to risks, clarifying regulatory expectations, and improving the overall efficiency of its oversight. OSFI is also publishing a report on the Standardized Climate Scenario Exercise (SCSE) that will enhance the financial sector's understanding of climate-related financial risks. Finally, OSFI is outlining a revised approach to Administrative Monetary Penalties (AMPs) that aligns better with OSFI's risk appetite and the current risk environment.

OSFI published the following elements as part of its regular Quarterly Release:

Updated guidelines

  • Capital Adequacy Requirements (CAR) Guideline
    OSFI has updated the CAR Guideline to improve clarity and better reflect risks faced by financial institutions. Key outcomes of this update include maintaining its existing criterion for income-producing real estate, introducing a transition period for Combined Loan Products, and aligning treatment of U.S. government-sponsored entities with U.S. standards. Related updates were made to the Small and Medium-Sized Deposit-Taking Institutions Capital and Liquidity Requirements Guideline.
  • Guideline E-23: Model Risk Management 
    The scope of application has been expanded to include not only risks from traditional models, but also risks from AI and other models to more accurately respond to current industry trends. Guideline E-23 promotes responsible innovation and sound decision-making to protect Canadians.
  • Guideline E-15: Appointed Actuary 
    To reduce duplication, OSFI will remove mandatory peer reviews starting January 2027, while retaining authority to request them when needed. OSFI has concluded that the cost of peer review to the industry outweighs the prudential benefits it provides.

Other initiatives

  • Standardized Climate Scenario Exercise  
    A one-time joint OSFI-AMF report to enhance the financial sector's understanding of climate-related financial risks, foster the development of climate risk measurement capabilities, and to provide a standardized view of physical and transition risks across financial institutions.
  • Administrative Monetary Penalties 
    OSFI is revising its AMP approach to better align with its risk appetite and to reflect current risks and incentivize early remediation of issues. The new framework applies to violations after September 11, 2025, and will include a revised scaling factor to determine appropriate AMP amounts for small and medium-sized financial institutions.

Visit OSFI's policy release and announcement schedule to stay informed on how OSFI prioritizes its policy releases.

On September 25, 2025, OSFI will hold a virtual Industry Day on the items released and provide the opportunity to ask questions. Stakeholders are invited to register here.

Quote

"OSFI has proactively established an annual discipline of refining our regulatory guidelines and advisories, looking for opportunities to remove unnecessary burden. Our actions have been clear: reduce regulatory burden where possible, sharpen our focus on the most important risks, and enable institutions to remain resilient and competitive in an uncertain world. A strong, stable financial system isn't just a safeguard—it's a catalyst for national prosperity."

- Peter Routledge, Superintendent of Financial Institutions

Quick facts

  • OSFI continues to modernize its policies and guidance so institutions can focus on the most important risks, contributing to the 60-Day Red Tape Review Process.
  • Basel III standardized capital floor level for Canadian banks continue to be deferred until further notice, as announced by the Superintendent in February 2025.
  • Guideline E-23 Model Risk Management supports a stable financial system and helps protect Canadians from potential harms associated with model failures or misuse.
  • The SCSE exercise involved analyzing hypothetical scenarios to understand how climate-related risks might affect financial institutions, their counterparties, and the industry more broadly. 

Related links

SOURCE Office of the Superintendent of Financial Institutions

OSFI - Media Relations, Email: [email protected], Telephone: 343-550-9373

Organization Profile

Office of the Superintendent of Financial Institutions