Regulatory Initiative: Regulations Amending the Pension Benefits Standards Regulations, 1985 (Governance and Transparency) – Forward Regulatory Plan 2023-2025
Title or working title of the regulatory initiative:
Regulations Amending the Pensions Benefits Standards Regulations, 1985 (Governance and Transparency)
Enabling act:
Pension Benefits Standards Act, 1985
Description of the objective:
Budget 2022 announced that the government will move forward with requirements for the disclosure of environmental, social, and governance (ESG) considerations, including climate-related risks, for federally regulated pension plans, as well as to strengthen the federal pension framework through improved governance and administration. The Budget Implementation Act, 2022, No.1 amended the Pension Benefits Standards Act, 1985, to allow regulations to be made respecting the investments of the assets of a pension fund and to require the administrator of a plan to establish a governance policy.
Budget 2023 announced that the government will require federally regulated pension plans to disclose their crypto-asset exposures to the Office of the Superintendent of Financial Institutions.
The government is exploring amendments to the Pension Benefits Standards Regulations, 1985 that would prescribe these requirements.
Regulatory cooperation efforts (domestic and international):
The potential amendments are not part of a formal regulatory cooperation initiative but could align with certain provincial regulations that require governance disclosures or with other regulations that require disclosures relating to ESG considerations or crypto-asset holdings.
Potential impacts on Canadians, including businesses:
The potential amendments would not impose significant costs on pension plan sponsors, administrators, members or retirees. Enhanced governance and disclosures would increase the transparency of pension plan administration.
Public consultation opportunities:
An informal targeted stakeholder consultation was conducted in fall 2023 on preliminary regulatory and policy proposals on governance, ESG disclosures, and crypto-asset disclosures. The 30-day pre-publication comment period through the Canada Gazette, Part I will provide an opportunity for stakeholders to comment on the proposed amendments.
Departmental contact information:
Kathleen Wrye
Director, Pensions Policy
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin St.
Ottawa, Ontario K1A 0G5
Email: Kathleen.Wrye@fin.gc.ca
Date the regulatory initiative was first included in the Forward Regulatory Plan:
November 2023
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