Regulatory Alerts2021-07-31
Foreign Entities Operating in Canada on a Branch Basis – Guideline (2021)
The Office of the Superintendent of Financial Institutions (OSFI) establishes supervisory expectations for foreign bank and insurance branches operating in Canada, clarifying that OSFI regulates their Canadian business rather than the foreign entity as a whole. Branch Management must oversee business strategies, risk controls, and asset-liability management while documenting home office arrangements, fund transfers, and maintaining accurate, accessible records at prescribed Canadian locations or via direct electronic access. OSFI will assess compliance through ongoing communication and targeted supervisory measures, requiring timely notifications of management changes and prompt responses to regulatory requests.
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