The Office of the Superintendent of Financial Institutions (OSFI) has released updated guidelines under Guideline B-13, Technology and Cyber Risk Management. These updates have significant implications for Canadian financial advisors and their technology practices.
Overview of B-13 Updates
Guideline B-13 sets out OSFI's expectations for how federally regulated financial institutions manage technology and cyber risks. The latest updates emphasize:
- Third-party risk management for technology vendors
- Cyber incident reporting and response requirements
- Data classification and protection standards
- Resilience testing and business continuity
Key Requirements for Financial Advisors
1. Technology Risk Governance
Firms must establish clear governance structures for managing technology risk, including:
- Board-level oversight of technology risk
- Documented risk appetite for technology and cyber risks
- Regular risk assessments and reporting
2. Cyber Security Controls
OSFI expects comprehensive cyber security controls including:
- Multi-factor authentication for all critical systems
- Encryption of data at rest and in transit
- Continuous monitoring and threat detection
- Regular vulnerability assessments and penetration testing
3. Third-Party Management
Financial institutions must assess and monitor the technology risks posed by third-party service providers:
- Due diligence before engaging technology vendors
- Contractual security requirements
- Ongoing monitoring of vendor security practices
- Exit strategies for critical vendor relationships
4. Incident Reporting
OSFI requires prompt notification of technology and cybersecurity incidents that could impact the institution or its clients. This includes:
- 72-hour reporting window for significant incidents
- Detailed incident documentation and root cause analysis
- Remediation plans and timeline
How NPC Data Guard Supports B-13 Compliance
Our security plans are designed to help financial advisors meet OSFI B-13 requirements:
- Encryption: AES-256 encryption at rest and in transit on all devices
- MFA: Biometric authentication and multi-factor access controls
- Monitoring: 24/7/365 security monitoring and threat detection
- Incident Response: Documented incident response procedures with rapid notification
- Vendor Management: SOC 2 Type II certified, with transparent security practices
Need help assessing your B-13 compliance? Contact our compliance team for a free consultation.