The Office of the Superintendent of Financial Institutions (OSFI) published final revisions to its advisory on public disclosure requirements for global systemically important banks (G-SIBs). OSFI also published an updated cyber-security self-assessment template to help federally regulated financial institutions gauge and improve their current state of readiness in the face of emerging and expanding cyber threats. The self-assessment template covers criteria for reviewing third-party providers, including the providers of cloud services. It examines the capability of a financial institution to respond to a cyber incident in areas ranging from organization and resources, to how it manages threats, risks, and incidents, and allows an institution to rate each element on a scale from non-existent to continuous improvement. In a related development, OSFI updated the requirements governing how federally regulated financial institutions should disclose and report technology and cyber-security incidents to OSFI.
The updated advisory on technology and cyber-security incident reporting, which becomes effective from August 13, 2021, supports a coordinated and integrated response to technology and cyber-security incidents when they occur at federally regulated financial institutions. As updated, the federally regulated financial institutions must report a technology or cyber-security incident to the Technology Risk Division of OSFI as well as their Lead Supervisor at OSFI within 24 hours. Other changes to the advisory include a new "failure to report" section. In case a federally regulated financial institution does not report a cyber incident, it could be subject to increased supervisory oversight by OSFI, could be placed on a watchlist, or could be assigned one of the stages in the OSFI supervisory intervention approach, among other measures.
The revised advisory on G-SIB disclosures addresses changes to the disclosure requirements included in the updated assessment methodology of the Basel Committee on Banking Supervision, which was published in July 2018 and will take effect for the 2022 G-SIB assessment exercise; the key changes relate to the new Trading Volume indicator and the inclusion of insurance activities for certain existing G-SIB indicators. The revised advisory also provides guidance on the availability of publicly disclosed G-SIB indicators and the nature of qualitative information to accompany the disclosure requirements. This advisory applies to federally regulated banks with a Basel III leverage ratio exposure measure (including exposures arising from insurance subsidiaries) exceeding EUR 200 billion at financial year-end, or a bank that was included in the assessment sample by OSFI based on supervisory judgment.
- Letter on Revised G-SIB Advisory
- Advisory on G-SIB Disclosures
- Cyber Security Self-Assessment
- Self-Assessment Template (XLSX)
- News Release on Cyber Incident Reporting
- Cyber Incident Reporting Advisory
Keywords: Americas, Canada, Banking, G-SIBs, Basel, Incident Reporting, Reporting, Cyber Risk, Regulatory Capital, Self-Assessment Template, OSFI
Previous ArticleAPRA Issues Interim Update to Policy Priorities for 2021 and Beyond
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.