Investment management

The Investment Management Guideline sets out the AMF’s expectations for ensuring that financial institutions follow sound and prudent investment management practices, on both an individual investment and aggregate portfolio basis, in order to protect consumers of financial products and services.

Margins for over-the-counter derivatives not cleared by a central counterparty

The Guideline on margins for over-the-counter derivatives not cleared by a central counterparty sets out the AMF’s expectations for the implementation by financial institutions of appropriate margining practices to reduce the risk of a potential default by a counterparty.

Management of expected credit losses

The Guideline on the management of expected credit losses sets out for institutions using the internal ratings-based approach and for institutions using the standardized approach, the AMF’s prudential expectations regarding sound and prudent management practices for credit risk associated with expected credit losses.

Securitization risk management

The Securitization Risk Management Guideline sets out the AMF’s expectations for ensuring that financial institutions establish sound practices for their securitization activities, including through the use of simple, transparent and comparable (STC) criteria for these types of transactions and the adoption of a framework intended to enhance risk sensitivity, management of credit risk transfers and allocation of capital.

Reinsurance risk management

The Reinsurance Risk Management Guideline sets out the AMF’s expectations for mitigating the additional risks to which insurers are exposed when transferring all or part of their insurance risks, whether through traditional methods of ceding reinsurance or alternative risk transfer mechanisms.

Climate risk management

The Climate Risk Management Guideline sets out the AMF’s expectations for good climate risk management by financial institutions. In addition to the general expectations pertaining to such things as governance and risk management, the guideline includes specific expectations relating to the fair treatment of clients (FTC) and climate risk-related financial disclosures. While the guideline focuses on risks, particular attention is also paid to the opportunities that climate change may create for financial institutions.

Residential hypothecary lending

The Residential Hypothecary Lending Guideline sets out the AMF’s expectations for ensuring that when financial institutions originate loans secured by a hypothec (mortgage) on residential property, or acquire assets related to such loans, these operations are well supported by prudent underwriting practices and sound risk management and internal controls.

Earthquake exposure risk management

The Earthquake Exposure Risk Management Guideline sets out the AMF’s expectations for ensuring that damage insurers exposed to earthquake risk establish sound and prudent management practices to effectively measure and monitor their earthquake exposure in accordance with their risk appetite and risk tolerance levels.