Archived - Part 3 – Various Measures: Division 2

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Financial Institutions (Conflicts of Interest)

To ensure the continued strong governance and oversight of federally regulated financial institutions the Government committed to examine whether the conflict of interest provisions contained in the financial sector statutes remain consistent with the overall Government policy as outlined in the Conflict of Interest Act (COI Act).

This measure will amend the Bank Act, the Insurance Companies Act and the Trust and Loan Companies Act to allow agents of the Crown and federal and provincial government employees to sit as directors on the boards of federally regulated financial institutions. These agents will be subject to the requirements of the federal Conflict of Interest Act and the provincial conflict of interest legislation, as relevant.

These provisions also remove the obligations of members of the Financial Institutions Supervisory Committee (FISC), along with the Deputy Superintendent of Financial Institutions and the Deputy Commissioner of the Financial Consumer Agency of Canada (FCAC) to notify the Minister of Finance of his/her intent to borrow money from any financial institution under the Office of the Superintendent of Financial Institutions Act (OSFI Act)and the Financial Consumer Agency of Canada Act (FCAC Act).

Repeal of the borrowing notification provisions under the OSFI Act and the FCAC Act will streamline and modernize Government policy on conflict of interest.

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