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Canada’s OSFI drafts model risk guideline covering AI and machine learning models

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Canada’s Office of the Superintendent of Financial Institutions released a draft revised Guideline E-23 on model risk management on 20 November 2023, with consultation open to 22 March 2024. The draft extended the guideline to all models at all federally regulated financial institutions, including insurers, and addressed models built with AI and machine learning methods. The final version, issued in September 2025, takes effect on 1 May 2027.

Why it matters

Canadian banks and insurers were told their AI and machine learning models would fall under the same model risk controls as traditional credit and capital models.

When
20 Nov 2023
ID
WTA-N-2023-0115
Where
Canada
Who
OSFI
Rules involved

Summary by wheresthe.ai, from Office of the Superintendent of Financial Institutions and the reporting credited above. Checked against the source on 9 Oct 2026.

Source copy: download the source PDF as saved on 18 Oct 2026 (PDF). Document the source offers: the source PDF. Also held by the Internet Archive.

Next stop on this Storyline: Led toOSFI finalises model risk guideline E-23, covering AI models at banks and insurers

Cite this story

WTA-N-2023-0115: “Canada’s OSFI drafts model risk guideline covering AI and machine learning models.” wheresthe.ai, 20 Nov 2023. https://wheresthe.ai/d/ca-osfi-draft-guideline-e23-ai-models-2023-11/ (source: Office of the Superintendent of Financial Institutions).

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