Legislation and Statutory Responsibilities

The statutory responsibilities of the Minister of Finance fall into three categories:

  1. statutes for which the Minister of Finance is named by Parliament or designated by the Governor in Council as the responsible minister or for which there is no named Minister but the Act is otherwise identified as falling under the responsibility of the Minister of Finance (listed in Section A below);
  2. statutes for which another minister is named as the responsible minister but for which the Minister of Finance has policy responsibility by virtue of his responsibility under s. 15 of the Financial Administration Act for "the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or to any other minister" (listed in Section B below); and
  3. statutes under which the Minister of Finance has assigned powers, duties and functions but for which another minister is responsible to Parliament (listed in Section C below).

Statutes for Which the Minister of Finance is the Responsible Minister

The Minister of Finance is responsible for the following statutes because he is named or designated, or jointly named, as such or because there is no named minister but the Act is otherwise identified as falling under the responsibility of the Minister of Finance. The Acts are grouped in order of major and lesser importance:

A.1 Statutes of Major Importance

Asian Infrastructure Investment Bank Agreement Act

Bank Act

Bank for International Settlements (Immunity) Act

Bank of Canada Act

Bills of Exchange Act

Borrowing Authority Act

Bretton Woods and Related Agreements Act

Budget Implementation Acts [1] (under various titles)

Canada Deposit Insurance Corporation Act

Canada Pension Plan [2]

Canada Pension Plan Investment Board Act

Canadian International Trade Tribunal Act

Canadian Gender Budgeting Act [3]

Canadian Payments Act

Canadian Securities Regulation Regime Transition Office Act

Cooperative Credit Associations Act

Currency Act

Customs Tariff

Depository Bills and Notes Act

European Bank for Reconstruction and Development Agreement Act

Federal-Provincial Fiscal Arrangements Act

Financial Administration Act [4]

Financial Consumer Agency of Canada Act

First Nations Goods and Services Tax Act

Income Tax Conventions Interpretation Act

Insurance Companies Act

Interest Act

Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

Office of the Superintendent of Financial Institutions Act

Payment Card Networks Act

Payment Clearing and Settlement Act

Pension Benefits Standards Act, 1985

Pooled Registered Pension Plans Act

Proceeds of Crime (Money Laundering) and Terrorist Financing Act [5]

Protection of Residential Mortgage or Hypothecary Insurance Act

Royal Canadian Mint Act [6]

Tax-Back Guarantee Act

Trust and Loan Companies Act

Winding-up and Restructuring Act (Parts II and III)

The Minister of Finance is authorized by statute to delegate some or all of his powers, duties and functions under the Bank Act, Trust and Loan Companies Act, Insurance Companies Act, Cooperative Credit Associations Act, Canada Deposit Insurance Corporation Act and Canadian Payments Act to a Minister of State.

A.2 Statutes of Lesser Importance

Air Canada Public Participation Act [7]

An Act respecting payments to a trust established to provide provinces and territories with funding for community development

An Act respecting the provision of funding for diagnostic and medical equipment

Bank of British Columbia Business Continuation Act

Beechwood Power Project Act

Canada Health Care, Early Childhood Development and Other Social Services Funding Act

Canadian Commercial Bank Financial Assistance Act

Eldorado Nuclear Limited Reorganization and Divestiture Act [8]

Energy Costs Assistance Measures Act

Export Credits Insurance Act (Parts II and III)

Federal-Provincial Fiscal Revision Act, 1964

Financial Institutions and Deposit Insurance System Amendment Act

Financial Institutions Depositors Compensation Act

First Nations' Sales Tax (Part 4 of the Budget Implementation Act, 2000)

Garnishment, Attachment, and Pension Diversion Act (Part II) [9]

Halifax Relief Commission Pension Continuation Act

Newfoundland and Labrador Additional Financial Assistance Act

Nordion and Theratronics Divestiture Authorization Act [10]

Oil Export Tax Act

Petro-Canada Public Participation Act [11]

Prince Edward Island Subsidy Act

Provincial Subsidies Act

Spending Control Act

Supplementary Fiscal Equalization Payments 1982-1987 Act

Teleglobe Canada Reorganization and Divestiture Act [12]

B. Statutes for Which the Minister of Finance Has Policy Responsibility But is Not Named as Responsible Minister

Although another Minister is named as responsible minister for the following statutes, the Minister of Finance has policy responsibility in respect of these Acts by virtue of his responsibility under s. 15 of the Financial Administration Act for "the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or to any other minister". In some cases, the Minister of Finance is not mentioned in the Act. In other cases, he has assigned responsibilities under the Acts in addition to his policy responsibility.

B.1 Statutes of Major Importance

Air Travellers Security Charge Act

Customs and Excise Offshore Application Act

Excise Act

Excise Act, 2001

Excise Tax Act

Greenhouse Gas Pollution Pricing Act (Part 1)

Income Tax Act

Special Import Measures Act

B.2 Statutes of Lesser Importance

Canada Development Corporation Reorganization Act

Canada-Newfoundland and Labrador Atlantic Accord Implementation Act

Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

(Parts IV and V)

Crown Corporations Dissolution or Transfer Authorization Act

Economic Development Agency of Canada for the Regions of Quebec Act

Income Tax Application Rules

Tax Convention Acts (several under various names)

Telesat Canada Reorganization and Divestiture Act [13]

C. Statutes Under Which the Minister of Finance Has Certain Powers, Duties and Functions

The Minister of Finance has powers, duties and functions under the following statutes for which another Minister is responsible to Parliament. These powers, duties and functions relate to the Minister's responsibility under s. 15 of the Financial Administration Act for the management of the Consolidated Revenue Fund (CRF) (e.g., loans, advances, guarantees, purchases of shares, and other payments out of the CRF).

Agricultural Marketing Programs Act

Atlantic Canada Opportunities Agency Act

Atlantic Fisheries Restructuring Act

Auditor General Act (notional responsibilities)

Broadcasting Act

Buffalo and Fort Erie Public Bridge Company Act

Business Development Bank of Canada Act

Canada Border Services Agency Act

Canada Council for the Arts Act

Canada Infrastructure Bank Act

Canada Education Savings Act

Canada-European Union Comprehensive Economic and Trade Agreement

Implementation Act

Canada Marine Act

Canada Mortgage and Housing Corporation Act

Canada Post Corporation Act

Canada Revenue Agency Act

Canada Small Business Financing Act

Canada Student Financial Assistance Act

Canadian Agricultural Loans Act

Canadian Commercial Corporation Act

Canadian Dairy Commission Act

Canadian Energy Regulator Act

Canadian Food Inspection Agency Act

Canadian Forces Superannuation Act

Canadian National Montreal Terminals Act

Canadian Ownership and Control Determination Act

Canadian Space Agency Act

Cape Breton Development Corporation Act

CN Commercialization Act

Competition Act

Criminal Code

Crown Liability and Proceedings Act

Cultural Property Export and Import Act

Customs Act

Department of Industry Act

Employment Insurance Act

Energy Administration Act

Energy Monitoring Act

Export Development Act

Expropriation Act

Farm Credit Canada Act

Farm Income Protection Act

Farm Products Agencies Act

Fisheries Improvement Loans Act

Foreign Missions and International Organizations Act

Freshwater Fish Marketing Act

Hibernia Development Project Act

Immigration and Refugee Protection Act

Indian Act

International Development (Financial Institutions) Assistance Act

International Development Research Centre Act

International Financial Assistance Act

Land Titles Repeal Act

Laurier House Act

Mackenzie Gas Project Impacts Funds Act

Marine Liability Act

National Battlefields at Quebec Act

National Capital Act

National Housing Act

Northwest Territories Act

Nunavut Act

Official Development Assistance Accountability Act

Parks Canada Agency Act

Petroleum and Gas Revenue Tax Act

Pilotage Act

Public Service Superannuation Act

Railway Relocation and Crossing Act

Regional Development Incentives Act

Royal Canadian Mounted Police Pension Continuation Act

Royal Canadian Mounted Police Superannuation Act

Saskatchewan Treaty Land Entitlement Act

Security of Canada Information Disclosure Act

Seized Property Management Act

Supreme Court Act

Telefilm Canada Act

Western Economic Diversification Act

Yukon Act

D. Description of Statutes of Major Importance and the Minister's Statutory Responsibilities

Air Travellers Security Charge Act (ATSC)

The ATSC was introduced in the Budget Implementation Act, 2001 to fund an enhanced air travel security system, including the activities of the Canadian Air Transportation Security Authority (CATSA), air transportation security policy oversight (Transport Canada) and the air marshal program (RCMP). The government undertook to maintain ATSC revenue in line with the cost of the enhanced air travel security system, over time.

The ATSC is imposed on air travellers who emplane on aircraft at designated airports in Canada. The ATSC is collected and remitted by air carriers.

The Minister of Finance is responsible for determining the tax policy and the development of related legislation. The Canada Revenue Agency has responsibility for administering the Act. CATSA reports to the Minister of Transport and is responsible for the delivery of security screening services to air passengers and their baggage.

Asian Infrastructure Investment Bank Agreement Act

This Act authorizes Canada's participation in the Asian Infrastructure Investment Bank (AIIB). The AIIB is a new international financial institution, like the World Bank, that is focused on infrastructure financing in Asia. Established in 2016 and based in Beijing, Canada formally joined the AIIB on March 19, 2018, with the Minister of Finance serving as Canada's Governor at the AIIB. Canada is also serving a two-year term as one of twelve Directors on the AIIB Board of Directors, beginning July 2018.

The Act authorizes payment for Canada's initial subscription of shares. The Act also authorizes Governor in Council Orders for the purposes of extending privileges and immunities and making appointments. Accordingly, the Minister of Finance has been appointed Canada's representative on the Board of Governors of the AIIB, while the Deputy Minister of International Trade has been appointed Alternate Governor.

Bank Act

The Bank Act provides a comprehensive code for the incorporation, ownership, and regulation of all banks and establishes a charter for these banks. The Act also allows for federal credit unions with ownership by members. The Act deals with such matters as the election and removal of directors, shareholder and member meetings, capital structure, and fundamental changes to the corporate structure. The Act sets out the activities in which a bank may engage and specifies its investment powers. It also contains provisions with respect to the supervision of banks by the Superintendent of Financial Institutions, and requirements with respect to audits, liquidity, capital, etc.

The Act authorizes the Superintendent to exercise various powers to intervene in the activities of banks if the Superintendent is of the view that it is necessary to protect the interests of depositors and creditors. In the appropriate case, the Superintendent can take steps for the eventual liquidation of a bank unless the Minister is of the view that it is not in the public interest.

Under the Act, the Minister is given a wide variety of powers, duties and functions. The Minister is authorized to recommend to the Governor in Council regulations in respect of such matters as investments, the disclosure of the cost of borrowing, the conduct of in-house insurance and securities business, the information to be contained in a prospectus, the maintenance of adequate capital and liquidity, and the disclosure of supervisory information.

Additionally, the Minister has the authority to approve a wide range of transactions, including ownership changes, mergers, investments by banks and foreign banks in Canada, and the establishment of banks, foreign bank subsidiaries and foreign bank branches in Canada.

The Act includes a five-year sunset clause. Following the latest financial sector review, the sunset date was extended to June 21, 2023 via the Budget Implementation Act, 2018, No. 1.

Bank for International Settlements (Immunity) Act

The Bank for International Settlements ("BIS") is an international organization that promotes international monetary and financial cooperation and serves as a bank for central banks. It acts as an intermediary by managing and investing foreign exchange assets of its members. The BIS also performs agency and trustee functions for central banks and public international organizations.

The Bank for International Settlements (Immunity) Act provides immunity to BIS from government measures and from civil suits in Canadian courts. Being an entity with considerable financial resources in Canada, the risk exists that the BIS could be sued and attract legal claims of a vexatious nature. Further, cases may arise where the State Immunity Act provides insufficient protection for property held by the BIS. The Bank for International Settlements (Immunity) Act addresses such risks and supports the public interest role of the BIS in the global financial system.

Bank of Canada Act

The Bank of Canada (the Bank) was established by the Bank of Canada Act. Pursuant to the Act, the capital of the Bank is divided into shares, which are issued to and held by the Minister on behalf of Canada, and registered in the Minister's name in the books of the Bank. The Bank is Canada's central bank, the agency directly responsible for Canada's monetary policy. The Act provides that the Bank shall be under the management of the Board of Directors composed of the Governor, a Deputy Governor, and twelve directors. The Directors are appointed for three-year terms by the Minister with the approval of the Governor in Council. The Deputy Minister of Finance sits as and ex officio member of the Board but does not have a vote.

In carrying out its responsibilities, the Bank maintains close communication with the government. The presence of the Deputy Minister of Finance on the Board provides one channel of communication between the Bank and the Department of Finance. In addition, the Act requires that the Minister and the Governor consult regularly on monetary policy with respect to its relation to economic policy. The duties of the Bank are to regulate credit and currency in the best interests of the economic life of the nation; to control and protect the national monetary unit; to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, as far as possible within the scope of monetary actions; and generally to promote the economic and financial welfare of Canada.

The Bank is responsible for the design and production of bank notes (see Currency Act). In addition, the Bank acts as fiscal agent for the government and is thus directly concerned with the management of the public debt. The Bank advises the government on the method of financing to be used in raising money and on the terms of new issues and undertakes the management of daily cash balances for the government.

As fiscal agent for the government, the Bank also acts as agent and advisor in the management of Canada's foreign exchange reserves, which are largely held in the Exchange Fund Account in the Minister's name.

Bills of Exchange Act

The Bills of Exchange Act provides the legal framework for bills of exchange, promissory notes, cheques and negotiable orders of withdrawal. The Minister does not have any administrative or regulatory duties under the Act, but is responsible for amendments to the Act.

Borrowing Authority Act

This Act authorizes the Minister of Finance to borrow money. The Borrowing Authority Act was introduced as part of Budget Implementation Act No. 1, 2017 and received Royal Assent on June 22, 2017.

Bretton Woods and Related Agreements Act

The Bretton Woods and Related Agreements Act governs Canada's participation in five international institutions, namely, the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). IBRD and IDA are together known as the World Bank. The Minister of Finance has been appointed Canada's representative on the Board of Governors of the IMF, the World Bank, IFC and MIGA.

This Act sets out the total contributions payable by Canada to these international financial institutions, such contributions being in the form of subscriptions. Provision is made for further payments in amounts appropriated by Parliament to the IBRD, IDA, IFC, MIGA and for the lending or granting of funds to any special trust funds established by the IMF.

In respect of the IMF, the quota allocated to Canada is equal to Canada's subscription and it determines the amount of Canada's contribution to the resources of the Fund. It limits the amounts Canada can borrow from the IMF, determines the size of Special Drawing Rights (SDR) allocations Canada receives, and determines Canada's voting strength on the Executive Board.

The Act authorizes the Minister to guarantee bridge loans by the Bank for International Settlements to countries that need interim financing pending completion of a loan arrangement with the IMF or the World Bank. These bridge loans are done through the Bank of Canada, which acts as the Minister's agent. The Act also authorizes the Minister to make loans or provide other financial assistance directly to foreign states where the Governor in Council is of the opinion that it is the national interest to do so.

The Minister is required to provide a report to Parliament before September 30 of each year on the general operations under the Act and the details of all operations that directly affect Canada in respect of these five international financial institutions.

Budget Implementation Acts and Acts implementing measures announced in Economic Statements (under various titles)

The Budget Implementation Acts provide parliamentary authority to implement the elements of the Budget Plan that require legislation. The Budget Plan is usually implemented by two Budget Implementation Acts (BIA). Each Act may create or introduce measures independently or amend other Acts. The first BIA contains, inter alia, time sensitive measures and is typically tabled shortly after the Budget. The second BIA is usually tabled in the fall. The Minister is responsible for tabling the BIA, although, in practice, the Parliamentary Secretary to the Minister of Finance takes responsibility for guiding the Act through Parliament.

From time to time, economic statements also contain measures that will need to be legislated. Any of the measures contained therein can be introduced in separate pieces of legislation or merged together to form one bill. They can also be merged in other bills.

Canada Deposit Insurance Corporation Act

The Canada Deposit Insurance Corporation (CDIC) is established by this Act to insure deposits in member institutions (up to $100,000 in each of the seven eligible categories) and promote and otherwise contribute to financial stability in Canada. Members include banks and federally incorporated trust and loans companies that accept deposits from the public.

The CDIC Board is composed of a Chairperson, five private sector directors appointed by the Minister with the approval of the Governor in Council and five public sector ex officio directors: the Deputy Minister of Finance, the Governor of the Bank of Canada, the Superintendent of Financial Institutions, the Commissioner of the Financial Consumer Agency of Canada and a Deputy Superintendent of Financial Institutions or another officer of the Office of the Superintendent of Financial Institutions (OSFI) appointed by the Minister.

The Minister of Finance has a number of administrative duties under the Act, including authorization of advances out of the Consolidated Revenue Fund to CDIC, approving CDIC's differential premium by-law, and approval of certain actions by CDIC. Of particular note is the Minister's power to veto proceedings by CDIC to have a federal financial institution liquidated where the Minister is of the view that it would not be in the public interest for CDIC to do so.

This Act has been amended on several occasions since the 2008 global financial crisis to designate CDIC as the resolution authority for its members and expand CDIC's resolution toolkit so that CDIC can manage the failure of a member institution in a manner that safeguards financial stability in Canada while minimising taxpayer exposure to loss. Notably, in 2016, the CDIC Act was amended to provide for a bail-in regime for Canada's systemically important banks. This regime allows CDIC to convert certain shares (e.g., preferred shares) and liabilities (as set out in regulation) of a failing systemically important bank into common shares to recapitalize the bank and allow it to remain open and operating.

Further, in 2018, the CDIC Act was amended to modernise and enhance the deposit insurance framework to better reflect products currently offered in the market, address the complexity of trust deposits, help protect depositors and improve understanding of insurance coverage, and ultimately better support financial stability.

Use of CDIC's powers for managing the failure of a CDIC member institution—including bail-in powers—requires Governor in Council approval on the recommendation of the Minister of Finance.

Canada Pension Plan (CPP)

The CPP is a mandatory, universal public pension plan for workers in Canada, except in Quebec where workers are covered by the Quebec Pension Plan (QPP) that provides similar benefits. The CPP is financed by employer and employee contributions, and their associated investment returns, and provides a "defined benefit" in retirement based on an individual's contributory history. In addition to retirement pensions, the CPP also provides disability and survivor benefits. As of 2019, the Canada Pension Plan consists of two parts:

Responsibilities under the CPP are as follows:

As of 2019, benefits payable under the base CPP are entirely covered by contributions of current workers, with investment income only beginning to be drawn in the early 2020s. Over the long term, the base CPP will remain primarily funded from contributions, with roughly 65% of total revenues coming from contributions and 35% from investment returns. Unlike the base CPP, and due to the full funding requirement, the CPP enhancement will rely more heavily on investment income rather than contributions to pay for benefits. Over the long term, roughly 70% of total revenues is expected to come from investment returns and 30% from contributions.

"Default provisions" in the CPP legislation set out the steps that will take effect if, at any statutory review of the CPP, the Chief Actuary calculates that the base CPP is not sustainable under the schedule of legislated contribution rates and federal and provincial ministers cannot reach agreement on a course of action. The CPP legislation provides that the "default provisions" for the CPP enhancement are to be set out in regulations. These regulations require the formal approval of seven out of ten provinces representing two-thirds of the population of the ten provinces.

Canada Pension Plan Investment Board Act

This Act establishes the Canada Pension Plan Investment Board (CPPIB) and provides that CPPIB's objects are to manage and invest money transferred to it from the Canada Pension Plan Account in the best interests of the contributors and beneficiaries under the Canada Pension Plan. CPPIB's investments are to be made in accordance with the regulations and with investment policies, standards and procedures its board of directors is required to establish. CPPIB is governed by a 12-person board of directors appointed by the Governor-in-Council on the recommendation of the Minister of Finance in consultation with the Ministers of Finance of the nine participating provinces (i.e. all but Quebec). Changes to the Canada Pension Plan Investment Board Act, however, require the formal approval of seven out of ten provinces representing at least two-thirds of the population of the ten provinces (including Quebec).

Canadian Gender Budgeting Act

The Act implements the policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.

Canadian International Trade Tribunal Act

This Act establishes the Canadian International Trade Tribunal (CITT), an independent and quasi-judicial body that reports to Parliament through the Minister of Finance. Because the CITT is statutorily constituted as a court of record, Ministers keep an arm's length relationship with the tribunal.

The CITT Act mandates the Tribunal to carry out quasi-judicial functions mandated in a number of other acts, such as the Customs Act, the Excise Tax Act (other than Part IX which deals with GST/HST), the Special Import Measures Act, and the Canadian International Trade Tribunal Procurement Inquiry Regulations. Under the CITT Act, the Governor in Council or the Minister may refer trade, tariff or economic issues to the Tribunal for inquiry and report.

Canadian Payments Act

The Canadian Payments Association (CPA, operating under the name Payments Canada) is established under this Act with the mandate and powers to operate Canada's national payment clearing and settlement systems. CPA by-laws are subject to Ministerial approval and the Minister can also issue directives to the CPA, as well as disallow any rule made by its board. Amendments that came into force in 2015 transformed the CPA's Board into a majority-independent Board elected by members under a one-member-one-vote distribution. Under these same amendments, the Minister of Finance launched and completed a review of this Act in 2018.

Under this Act, the Minister also has the authority to designate and oversee payments systems that are national in scope or which play a major role in supporting transactions in the Canadian financial markets or the Canadian economy. The Minister can issue directives to such designated payments systems.

Canadian Securities Regulation Regime Transition Office Act

This Act establishes the Canadian Securities Regulation Regime Transition Office. The purpose of the Transition Office is to assist in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority. The Transition Office supports the Government of Canada's participation in establishing the Cooperative Capital Market Regulatory System, and provides advice on matters related to federal responsibilities over systemic risk management and criminal enforcement in Canada's capital markets.

Under the Act, the Governor in Council appoints a president, or two co-presidents acting jointly, of the Transition Office, on the recommendation of the Minister of Finance. The Act also authorizes the Minister to make direct payments to the Transition Office for its use (*portion of sentence redacted*, the limit can be increased through an appropriation Act). The president must submit to the Minister an annual report of the Transition Office's activities, to be tabled in Parliament. The Governor in Council may, on the recommendation of the Minister, dissolve the Transition Office.

Cooperative Credit Associations Act

Based largely on the Trust and Loan Companies Act, the Cooperative Credit Associations Act (CCAA) allows for the creation of a cooperatively-owned and federally incorporated financial institution.

Concentra Financial Retail Association was the sole cooperative retail association incorporated under the CCAA and operating in the credit union system, outside of Quebec, on a commercial basis. On January 1, 2017, Concentra became a bank and is now incorporated under the Bank Act.

Previously, the CCAA permitted provincially-incorporated cooperatives to register under the CCAA to be jointly-regulated by OSFI and the respective provincial regulatory body. However, pursuant to Bill C-43, as at January 15, 2017, this section was repealed and the five provincial credit union centrals were deregistered from the CCAA.

The Act includes a five-year sunset clause. As of January 2017, there are no entities incorporated under the CCAA. For this reason a decision was made as part of the latest financial sector review to not renew the March 29, 2019 sunset date in the CAAA. Consequently, the potential application of the Act is currently suspended.

Currency Act

There are two parts to the Currency Act. Part I contains administrative and financial provisions dealing with the issuance and recall of coinage and the legal tender status of coins (see Canadian Currency and Coinage); Part II governs the Exchange Fund Account (EFA) (see Exchange Fund Account).

  • Canadian Currency and Coinage

Canadian currency is governed by the Currency Act, Bank of Canada Act, and the Royal Canadian Mint Act. The Minister has overall responsibility for the currency system (circulating coins and bank notes).

The Minister of Finance is the minister responsible for the Royal Canadian Mint, which supplies the coinage needs for the Canadian economy. The Mint produces circulating coins under a Memorandum of Understanding with the Department, and distributes the coins to the financial institutions. The Governor in Council approves changes to coin designs on the recommendation of the Minister of Finance. The Mint may also, under its own Act, produce numismatic coins and precious metal coins.

The Minister of Finance is the minister responsible for the Bank of Canada, which manages the production and distribution of bank notes. Under the Bank of Canada Act, the Minister approves changes to bank note design and the addition or deletion of a bank note denomination. The Minister's approval is also required for changes to the material used for Canadian bank notes. *Sentence redacted* Under the Currency Act, the Minister has the authority to call in and remove the legal tender status of bank notes ( e.g., on non-current denominations).

  • Exchange Fund Account (EFA)

The EFA, which is the principal repository for Canada's official international monetary reserves, is held in the name of the Minister of Finance. The purpose of the EFA is to protect the external value of the Canadian dollar, if necessary, and provide a source of liquidity for the government.

Responsibility for the management of the EFA is jointly shared by the Department of Finance and the Bank of Canada as the government's fiscal agent. The Currency Act authorizes the Minister to establish an investment policy governing the investment of EFA assets. The Act empowers the Minister to approve asset classes and carry out any transaction of a financial nature concerning EFA assets consistent with the investment policy. The Act also sets out the treatment of EFA income and specifies that an annual report on the operation of the EFA be tabled in Parliament.

The EFA is mainly made up of US dollar and Euro denominated securities. Other assets include yen and Pound Sterling denominated securities, as well as IMF Special Drawing Rights. As of August 31, 2019, Canada's official international reserves, which include EFA assets and Canada's reserve position in the IMF, totaled USD $86.1 billion. Liquid reserves in the EFA totaled USD $74.7 billion.

The EFA is funded by advances from the Consolidated Revenue Fund. All foreign currency borrowing done by the government is for the credit of the EFA.

In September 1998, Canada moved away from intervening systemically in foreign exchange markets. The current policy is for the Bank to only intervene on an exceptional basis and subject to agreement between the Minister of Finance and the Governor of the Bank of Canada.

Customs and Excise Offshore Application Act

The purpose of this Act is to extend the jurisdiction of Canada's customs and excise legislation to operations on the continental shelf. Formerly, it extended only to the 12-mile limit. The effect of this Act is to offer greater protection to Canadian ship builders. Upon a foreign ship entering the Continental Shelf area to perform services, it must pay duty it formerly would not have had to pay.

Customs Tariff

This Act contains a wide range of provisions dealing with the treatment of goods imported into Canada. Primarily, it establishes the rates of duty and the authority to levy such duties on imported goods. It also provides for the rules for determining the country of origin of imported goods, which in turn provides the basis for tariff preferences (e.g., the United States Tariff for U.S. goods imported under NAFTA and the General Preferential Tariff for goods from developing countries). The Customs Tariff includes authority to reduce or remove duties on imported inputs to enhance the competitiveness of Canadian producers. It also allows for emergency surtax measures to address injurious imports and to enforce Canada's rights under trade agreements.

The Minister of Finance is responsible for the determination of tariff policy. The Canada Border Services Agency is responsible for administering the Customs Tariff.

Depository Bills and Notes Act

This Act permits clearing houses to record the transfer of certain bills and notes through book-entries rather than physical delivery as was required under the Bills of Exchange Act. The Minister has no administrative or regulatory duties under this Act.

European Bank for Reconstruction and Development Agreement Act

This Act authorizes Canada's participation in the European Bank for Reconstruction and Development (EBRD) which was established for the purpose of providing financial assistance on a multilateral basis to Eastern Europe to aid it in its transition to a free market based economy. Canada is one of the major contributors to this institution, which is structured in a manner reflecting the international financial institutions referred to in the Bretton Woods and Related Agreements Act.

The Act authorizes the payment of Canada's initial subscription of shares, over a 5-year period, and a supplemental subscription for additional shares in an amount not to exceed $85 million. Any further subscription for shares must be authorized in an Appropriation Act. Authorization is made for the making of an Order by the Governor in Council extending the privileges and immunities routinely granted to international financial institutions. The Minister of Finance has been appointed Canada's representative on the Board of Governors of the Bank.

The Minister is required to provide a report to Parliament before March 31 of each year containing a general summary of all actions, including their human rights and sustainable development aspects of the operations of the Bank.

Excise Act

The Excise Act imposes excise duties on beer. These duties are imposed at the point of production. The Minister of Finance is responsible for the determination of tax policy and the development of related legislation. The Canada Revenue Agency and the Canada Border Services Agency administer the Act.

Excise Act, 2001

The Excise Act, 2001, came into effect on July 1, 2003, providing the framework for the taxation of spirits, wine and tobacco products. The Act modernizes the legislative and administrative structure of federal taxation of spirits, wine and tobacco products. The duties are imposed at the point of production.

Cannabis products are generally subject to an excise duty under the Excise Act, 2001 since October 17, 2018. The federal government has entered into Coordinated Cannabis Taxation Agreements (CCTAs) with all provincial and territorial governments except Manitoba, with the aim of keeping duties on cannabis low through a federally administrated coordinated framework. Those agreements are made under the enabling authority of Part III.2 of the Federal-Provincial Fiscal Arrangements Act. Each agreement provides that 75 per cent of the duties go to provincial and territorial governments and the remaining 25 per cent to the federal government. For the first two years of the agreement, the federal portion of cannabis excise duty revenue is capped at $100 million annually, with any federal revenue in excess of $100 million provided to provinces and territories.

The Minister of Finance is responsible for the determination of tax policy and the development of related legislation. The Canada Revenue Agency and the Canada Border Services Agency administer the Act.

Excise Tax Act

The Excise Tax Act provides for the imposition and administration of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) and a number of other taxes.

The GST came into force on January 1, 1991 replacing the Federal Sales Tax (FST). In 1997, following an agreement with Nova Scotia, New Brunswick, Newfoundland and Labrador, the legislation was amended to provide for the imposition of the HST in those provinces, effective April 1, 1997. With the agreement of B.C. and Ontario, HST began to be imposed in those provinces on July 1, 2010. However, following a referendum on the HST in B.C., the HST ceased to apply in B.C. effective March 31, 2013. Under a similar agreement between Canada and Quebec, Quebec agreed to harmonize its Quebec Sales Tax with the GST/HST, going forward, as of January 1, 2013. Canada and Prince Edward Island have also implemented the HST in PEI, effective April 1, 2013.

The GST/HST is a value-added tax designed to tax the value of final consumption of goods and services in Canada. It is imposed at the rate of five per cent on all property and services provided in Canada in the course of a commercial activity, unless they are specifically 'zero-rated'/ tax-free (e.g., basic groceries, prescription drugs, medical devices, exports) or exempt (e.g., residential rents and most public services). In the harmonized provinces where the HST applies, an additional rate of tax applies, representing the provincial component of the HST.

Under separate parts, the Act also imposes excise taxes on gasoline, aviation gasoline, aviation (jet) fuel and diesel fuel, fuel-inefficient automobiles and automotive air conditioners, as well as a tax on premiums in respect of property and casualty insurance (other than reinsurance) regarding a Canadian risk issued by an insurer not authorized to do business in Canada or issued through an insurance broker or agent outside Canada.

The Minister of Finance is responsible for the determination of tax policy and the development of related legislation. The Canada Revenue Agency and Canada Border Services Agency administer the Act.

Federal-Provincial Fiscal Arrangements Act

The Federal-Provincial Fiscal Arrangements Act authorizes the Minister to make various transfer payments to the provinces and territories. As of May 2019, the Act covers the following transfer payments: the Canada Health Transfer (CHT), the Canada Social Transfer (CST), Equalization, Territorial Formula Financing (TFF), Nova Scotia Cumulative Best‑of Guarantee, Fiscal Stabilization, and Alternative Payments for Standing Programs. The legislation specifies formulae for the determination of the payments for all transfers. The Act also authorizes the administration of reductions or withholdings from the CHT or CST, or reimbursements of the CHT, as directed by the responsible Minister (e.g., Minister of Health). It also sets out terms for the recovery of a number of interest-free loans of past protection amounts provided to provinces in relation to the Equalization program.

The legislative authority to make CHT and CST payments does not expire. The authority to make Equalization and TFF payments was extended to March 31, 2024, through the Budget Implementation Act, 2018, No.1.

In addition, the Act provides authority for the Minister of Finance to make transfer payments relating to various federal taxes that the federal government shares with provinces and territories. The Act covers tax transfer payments in respect of the tax imposed on stock option benefit deferral, preferred share dividend taxes, the tax in respect of the Specified Investment Flow-Through (SIFT) trusts and partnerships, the tax on payments under Registered Education Savings Plan, and the tax on excess Employee Profit Sharing Plan (EPSP) amounts payable under the Income Tax Act.

The Act also authorizes the Minister to enter into Tax Collection Agreements (TCAs), sales tax harmonization agreements or arrangements, and Reciprocal Taxation Agreements (RTAs) with the provinces and territories (all but the RTAs require the approval of the Governor in Council to enter into such agreements).

The federal government has TCAs with all provinces and territories, except Quebec for personal and corporate income tax and Alberta for corporate income tax. The basic foundation of the TCAs is that the federal government administers provincial/territorial income taxes virtually free of charge, in exchange for which provinces and territories agree to adhere to a common tax base. The original TCAs were signed in 1962. These agreements were modernized and replaced by new agreements effective for the 2004 taxation year.

The Act also authorizes the Minister, with the approval of the Governor in Council, to enter into sales tax harmonization agreements or arrangements with the government of a province. The provinces of Nova Scotia, New Brunswick, Ontario, Prince Edward Island and Newfoundland and Labrador entered into Comprehensive Integrated Tax Coordination Agreements (CITCAs) with Canada which govern the administration of the HST in the respective provinces. A similar agreement has been entered into with Quebec. Revenu Québec also, generally, administers the GST in Quebec for the Government of Canada.

In addition, the Act authorizes the Minister, with the approval of the Governor in Council, to enter into Coordinated Cannabis Taxation Agreements (CCTAs). More details relating to those agreements can be found under the heading Excise Act, 2001.

RTAs are bilateral agreements between the federal and most provincial/territorial governments (exceptions are Alberta and New Brunswick) under which governments agree to pay each other's sales and excise taxes in certain circumstances. The RTAs have typically been in force for five years. As part of the most recent bilateral negotiations, seven provinces (Saskatchewan, Manitoba, Nova Scotia, Newfoundland and Labrador, Yukon, Northwest Territories and Nunavut) have signed an enduring agreement subject to a review once every five years; two provinces (Québec and Prince Edward Island) have signed 5 year agreements; and two provinces (British Columbia and Ontario) have signed extensions to their respective agreement while negotiations are ongoing.

The Act also authorizes the Minister to enter into taxation arrangements with Indigenous governments for the administration of taxes. The federal government has arrangements in place with fifteen Indigenous self-governments in respect of personal income tax and arrangements in place with eight Indian bands in respect of the GST on sales of fuel, tobacco products and alcoholic beverages. The government has also entered into arrangements with thirty-one Indian bands and Indigenous self-governments in respect of the entire GST base (for more details regarding those arrangements, see below under First Nations Goods and Services Tax Act). Under these fifty-four arrangements, the federal government administers the taxes of Indigenous governments free of charge and Indigenous governments agree to impose taxes that are fully harmonized with corresponding federal taxes. Negotiations are underway with several other Indigenous governments.

Financial Administration Act (FAA)

The Department of Finance was created by an Act of Parliament in 1869, but now operates under sections 14 to 16 of the Financial Administration Act. This Act sets out the various responsibilities with respect to financial operations of the Government including loans, investments and guarantees by the Government.

  • Debt Management

The Minister of Finance has statutory responsibility for debt management under Part IV of the FAA, which stipulates that no new funds can be borrowed by the government without the authority of Parliament. The FAA and the Borrowing Authority Act authorize the Minister of Finance to borrow on behalf of Her Majesty in Right of Canada.

As part of the annual debt strategy exercise, the Minister reviews the recommendations and approves the debt strategy for the next fiscal year, as well as the broad operational plan of action for implementing that strategy. During the fiscal year, approval of new initiatives or major changes to strategy is sought as circumstances warrant.

  • Stability and Efficiency of the Financial System in Canada

Part IV.1 was added to the Act in 2009, and provides the Minister of Finance with extraordinary powers to deal with certain types of financial crises. It allows the Minister, with the Governor in Council's authorization, to enter into any contract that in the Minister's opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including to:

  1. purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity;
  2. create a charge on, or right or interest in, securities of an entity held by the Minister;
  3. make a loan to an entity;
  4. provide a line of credit to an entity;
  5. guarantee any debt, obligation or financial asset of an entity; or
  6. provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity.
  • Crown Corporation Financing

The FAA also includes provisions regarding the administration of government commercial or quasi-commercial activities, including Crown corporations. Part X of the Act sets out the control and accountability regime that applies to certain Crown corporations.

As part of the overall management of the financial affairs of the Government of Canada, the Minister is responsible for establishing the policy framework within which Crown corporations manage their investment portfolios, borrowings and financial liabilities prudently. To ensure that Crown corporations identify and manage their financial risks appropriately, guidelines have been issued applicable to a broad spectrum of Crown corporations. In addition, a capital and dividend policy framework applies to financial Crown corporations (the Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada).

Under the FAA, the Minister is required to approve the terms and conditions of all Crown corporation borrowings. The FAA also requires that Crown corporations that intend to borrow money include their borrowing plan and strategy within their annual corporate plans. The Minister's recommendation may be required before the corporate plans are submitted to the Treasury Board for approval. The majority of such plans are submitted for approval just prior to the start of the new calendar and fiscal years (i.e., December and March). Crown corporations may also submit amended corporate plans for approval any time during the year.

Export Development Canada has significant treasury operations and is very active in Canadian and international capital markets. A number of Crown corporations (i.e., the Business Development Bank of Canada, the Canada Mortgage and Housing Corporation, Farm Credit Canada), obtain their borrowings directly from the Minister of Finance.

Also under this Act, the Minister has joint responsibility with the President of the Treasury Board for the form of the Public Accounts submitted to Parliament. Under the Act, the Minister is also charged with the management and direction of the Consolidated Revenue Fund, and the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or any other Minister.

  • Remission Orders

The FAA provides that a remission orders may be granted by the Governor in Council, on recommendation of the appropriate Minister or the Treasury Board, as the case may be, to provide full or partial relief from tax, interest, penalty or other debt subject to certain conditions. The legal authority to grant a remission order is set out in section 23 of the FAA. The wording of this provision is fairly general and enables the appropriate Minister to take into account the wider impact of recommending remission, including, for example, the public interest in the integrity of the tax system and its proper administration, and fairness to other taxpayers.

Financial Consumer Agency of Canada Act

The Financial Consumer Agency of Canada (FCAC) was established in 2001 pursuant to the Financial Consumer Agency of Canada Act (FCAC Act). The Agency supervises federal financial institutions to determine whether they are in compliance with the consumer-related provisions in their governing statutes, monitors voluntary codes of conduct adopted by financial institutions designed to protect the interests of consumers, and undertakes consumer education activities.

The Act authorizes the Commissioner of the FCAC to administer the consumer provisions in the Bank Act, the Trust and Loan Companies Act, the Insurance Companies Act, and the Cooperative Credit Associations Act, and to examine and to report to the Minister of Finance, from time to time, on all matters connected with the administration of the FCAC Act and of the consumer provisions of the financial institutions statutes.

The FCAC Act also mandates the FCAC to collaborate and coordinate with stakeholders in activities to contribute to and support initiatives to strengthen the financial literacy of Canadians. Amendments that came into force in 2019 reinforced the FCAC's financial literacy role by integrating financial literacy into the purpose clause of the FCAC Act.

The Minister presides over, and is responsible for the Agency. The Minister is required to table before Parliament, each year, a report showing the operations of the Agency.

First Nations Goods and Services Tax Act

Part 1 of the Act provides for the imposition by eligible First Nations of a First Nations goods and services tax (FNGST) on First Nations' lands. The Act is "opt-in" legislation and the Minister only negotiates a tax administration agreement at the request of an interested First Nation. The FNGST is payable by both status Indians and others and is identical to the Goods and Services Tax (GST) or the federal component of the Harmonized Sales Tax (HST). The Act provides for a seamless operation of the GST/HST and an FNGST imposed by a First Nation. The application of an FNGST is subject to the conclusion of a tax administration agreement between the Minister and the authorized body of a First Nation. The agreement must be approved by the Governor in Council.

Part 2 of the Act facilitates the establishment of taxation arrangements between the governments of specified provinces and interested Indian bands situated in those specified provinces.

Greenhouse Gas Pollution Pricing Act (Part 1)

The Greenhouse Gas Pollution Pricing Act (GGPPA) provides the legislative framework for the federal carbon pollution pricing backstop ('backstop') that applies in jurisdictions that request it and in those that do not have a carbon pricing system that has been assessed by the Governor in Council as adequately stringent. The backstop is comprised of two elements: a charge on fossil fuels under Part 1 of the Act, which falls under the Minister's purview, and an output-based pricing system (OBPS) under Part 2 of the Act, which is administered by Environment and Climate Change Canada (ECCC).

Fuel producers and distributors in a backstop jurisdiction must be registered with the Canada Revenue Agency (CRA) and are largely responsible for paying the fuel charge. Generally, the fuel charge will be payable upon use by a producer or distributor, or upon delivery to a person that is not registered under the carbon pricing framework. The Act also provides for special rules that apply to the transportation sector. There are limited circumstances in which relief is provided from the fuel charge (e.g., farmers).

The Act requires that the net amount of the fuel charge revenues be distributed to the jurisdiction of origin, but provides flexibility to the Minister of National Revenue to determine how to distribute the revenues. Specifically, the Act provides that the revenues may be distributed to the province, to prescribed persons, or a combination thereof. The net amount to be distributed by the Minister of National Revenue is reduced by any Climate Action Incentive payments provided under the Income Tax Act by the Minister of Finance, and any payments for climate action support [14] made under the authority of the Budget Implementation Act, 2019, No. 1.

The Minister of Finance is responsible for the determination of fuel charge policy and the development of related legislation. The Canada Revenue Agency and, to a lesser extent, the Canada Border Services Agency, administer Part 1 of the Act.

Income Tax Act

The Income Tax Act is one of the primary sources of revenue for the federal government. In general, the Act levies a tax on the taxable income for each taxation year of every person (including corporations) residing in Canada at any time in the year. Non-residents are also subject to tax under the Act, but only on certain Canadian source income.

The Act contains special rules that apply particularly to individuals (e.g., rules governing employment income) and rules that apply to a variety of business entities (e.g., corporations and their shareholders, partnerships and their members and trusts and their beneficiaries). Further, specialized rules have been developed to deal with certain businesses (e.g., banks, insurance companies, as well as oil & gas and mining companies).

Taxable income and tax payable are determined by various rules set out in the Act. The calculation of taxable income is subject to certain deductions, and certain credits are provided in the payment of the tax. Further, some tax credits are "refundable", in that they may be paid out to the recipients even where no tax is payable under the Act (e.g., the Canada Workers Benefit). Generally, tax payable is reported (or a refund is claimed) in an annual income tax return. However, certain refundable tax credits are delivered through the benefit system throughout the year (e.g., the GST/HST Credit and the Canada Child Benefit). The tax system is self-administered, in that tax payable (or a refund) is self-assessed.

The Income Tax Act also imposes a range of other taxes, including: a special capital tax applying to large financial institutions; and withholding taxes that apply to a variety of payments made to non-residents (e.g., dividends, certain non-arm's length interest, pension payments).

The Minister of Finance is responsible for the determination of tax policy and the development of income tax legislation. The Canada Revenue Agency administers the Act, in that it performs a verification, audit and collection function.

Income Tax Conventions Interpretation Act

This Act provides for clarification as to the meaning of terms found in income tax conventions entered into between Canada and another state, tying such undefined terms to terms as defined in the Income Tax Act.

Insurance Companies Act

The Insurance Companies Act applies to all insurance companies that are incorporated under Canadian federal law and to all foreign insurance companies that do business in Canada on a branch basis. In the case of federal companies, it establishes their business and investment powers, a regime of corporate governance and the facility for making fundamental changes to their corporate structure. The general provisions of the Act mirror those of the Bank Act and Trust and Loan Companies Act, with necessary modifications. In addition to the matters covered in the Bank Act and Trust and Loan Companies Act, the Act deals with mutualization and demutualization of life insurance companies, the rights of participating policyholders, the duties and functions of actuaries, the administration of segregated funds, reinsurance, and special rules for fraternal benefit societies.

Consumer related measures, such as the pricing of auto premiums, is a provincial responsibility even when a company is federally incorporated.

The Act authorizes the Superintendent to exercise various powers to intervene in the activities of insurance companies if the Superintendent is of the view that it is necessary to protect the interests of policyholders and creditors. In the appropriate case, the Superintendent can take steps for the eventual liquidation of an insurance company unless the Minister is of the view that it is not in the public interest.

Under the Act, the Minister is given a wide variety of powers, duties and functions. This includes the authority to approve a wide range of transactions, including ownership changes, mergers, investments by Canadian insurance companies and foreign insurance companies doing business in Canada and the establishment of Canadian insurance companies as well as foreign insurance companies' branches in Canada.

The Act includes a five-year sunset clause. Following the latest financial sector review, the sunset date was extended to June 21, 2023 via the Budget Implementation Act, 2018, No. 1.

Interest Act

The Interest Act sets disclosure requirements and prepayment conditions for mortgages, and contains other consumer protection measures to ensure that interest rates are specified in loan contracts.

The Minister is responsible for the Act but does not have any administrative duties under it.

Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

Budget 2005 introduced the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act to implement the February 2005 Offshore Arrangements reached between the Government of Canada and the governments of those two provinces.

The Act provides each province with 100 per cent protection, in the form of offset payments outside of the Equalization Program, from reductions in Equalization resulting from the inclusion of offshore revenues in the program and covers the eight-year period from 2004-05 to 2011-12.

The Act provides for upfront, non-refundable payments to be made to each province ─ $2.0 billion for Newfoundland and Labrador and $830 million for Nova Scotia. These payments were made in June 2005. Additional payments would flow to the provinces if the cumulative value of the offset during the first eight years exceeds the upfront payment amounts. Additional payments were made under the Act to Nova Scotia. The Act also provided for a transition payment in 2011-12 in the event that a province did not qualify for Equalization in that fiscal year. A transition payment of $536 million was made to Newfoundland and Labrador in 2011-12.

The Act also stipulates that this protection could be extended for a second eight-year period if certain conditions were met, namely: that the provinces continued to receive Equalization payments and that its per capita "net debt" was still larger than that of at least four other provinces. Nova Scotia met the conditions for the second eight-year period; Newfoundland and Labrador did not. Nova Scotia continues to receive payments under the Act and will receive its final offset payment in March 2020.

The Act requires the Minister to undertake joint reviews of the Arrangements with each of Newfoundland and Labrador and Nova Scotia by March 31, 2019. The reviews are required to address, among other items, whether the objectives of the 1985 Canada-Newfoundland and Labrador Atlantic Accord and the 1986 Canada-Nova Scotia Offshore Petroleum Resources Accord have been met.

On April 1 2019, the Government of Canada announced that it had reached a new agreement with Newfoundland and Labrador, the Hibernia Dividend Backed Annuity Agreement. The Agreementstates that: "the parties agree that they have now completed the review of the 2005 Arrangement on Offshore Revenues required pursuant to section 29 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and pursuant to the Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues signed February 14, 2005."

Office of the Superintendent of Financial Institutions Act

This Act authorizes the Superintendent of Financial Institutions to perform duties under the Bank Act, the Trust and Loan Companies Act, the Insurance Companies Act, the Cooperative Credit Associations Act, the Pension Benefits Standards Act, 1985, the Pooled Registered Pension Plans Act, the Civil Service Insurance Act, and Part I of the Excise Tax Act, and to examine into and to report to the Minister of Finance, from time to time, on all matters connected with the administration of these statutes.

The Act provides for the establishment of a Financial Institutions Supervisory Committee (FISC) consisting of the Superintendent, the Governor of the Bank of Canada, the Chairman of the Canada Deposit Insurance Corporation, the Commissioner of the Financial Consumer Agency of Canada and the Deputy Minister of Finance, to facilitate consultations and the exchange of information on matters relating to the supervision of financial institutions.

The Act also provides for the Minister to make specified expenditures out of the Consolidated Revenue Fund and out of the assessment and interim assessment of financial institutions received pursuant to the Act to defray the expenses arising out of the operations of the Office.

The Minister presides over, and is responsible for, the Office, and is required to table an annual report before Parliament, to show the operations of the Office.

Payment Card Networks Act

The Payment Card Networks Act gives the Minister of Finance the authority to regulate national payment card networks and the commercial practices of payment card network operators. Further, it gives the Financial Consumer Agency of Canada a mandate to supervise payment card network operators to determine their compliance with the Payment Card Networks Act and its regulations.

Payment Clearing and Settlement Act

Under Part 1 of this Act, the Bank of Canada may designate a clearing and settlement system in Canada that, in the opinion of the Governor of the Bank of Canada, could pose a systemic risk or a payments system risk. The designation by the Governor is subject to the Minister forming the opinion that the designation is in the public interest. Designated payment clearing and settlement systems are subject to Bank of Canada oversight and are provided certain legal protections that allow these payment systems to clear and settle transactions in the event of a failure of one of their participants. Under Part II of the Act, the Minister can designate an entity as a securities and derivatives clearinghouse that will receive the protections provided in the Act for the contractual arrangements between the members of the clearinghouse.

Pension Benefits Standards Act, 1985

The Pension Benefits Standards Act, 1985 (PBSA), sets out the rules for administering and funding pension plans falling under federal jurisdiction (interprovincial transportation, banks, telecommunications, broadcasting, and federal Crown corporations). The PBSA imposes minimum funding requirements on pension plans to support the solvency and security of the pension fund and its ability to pay promised benefits. The PBSA sets minimum standards for funding, investments, membership eligibility, vesting and accrual of pension benefits, locking-in and portability of benefits, retirement benefits, death benefits, and members' rights to information.

Under the PBSA, the Office of the Superintendent of Financial Institutions (OSFI) is responsible for supervising federally regulated private pension plans to determine whether they are meeting regulatory requirements; and in so doing, OSFI strives to protect the rights and interests of pension plan members. Plan administrators are required to file all plan documents with OSFI and ensure that the documents comply with the PBSA. OSFI has the power to terminate all or part of a plan if the plan is failing to meet certain tests and standards or if the employer has ceased to make contributions. OSFI is required to make an annual report to the Minister on the operation of the PBSA.

Pooled Registered Pension Plans Act

The Act provides a regulatory framework for pooled registered pension plans similar to the PBSA, and regulates pooled registered pension plans available to employees of federally regulated employers, as well as self-employed individuals in the Territories.

The Act provides that the Minister may, on the approval of the Governor in Council, enter into bilateral and multilateral agreements relating to the supervision and administration of a pooled registered pension plan and the application of the legislation. The Minister is required to publish multilateral agreements in the Canada Gazette and to ensure that every amendment is accessible to the public.

The Act provides the Superintendent of Financial Institutions (OSFI) with the power to licence administrators, register pooled registered pension plans, and issue directions of compliance, amongst other things, and sets out obligations on administrators and employers in respect of such plans. OSFI is required to make an annual report to the Minister on the operations of the Act.

The Act also requires that pooled registered pension plans be low cost, and provides minimum standards and rules for investments, membership eligibility, locking in, provision of information and other vital operational issues.

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) establishes specific measures designed to detect, prevent and deter money laundering and terrorist financing including: 1) requirements for financial entities and designated non-financial businesses and professions to report suspicious transactions, other prescribed financial transactions and terrorist property reports to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC); 2) requirements on all persons or entities to report the exportation or importation of currency and monetary instruments over a prescribed dollar threshold to the Canada Border Services Agency; and 3) the establishment of FINTRAC, a financial intelligence unit which receives, and analyzes these reports and other information and discloses certain designated information to law enforcement and other agencies where there are reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering or terrorist financing offence or to threats to the security of Canada.

The Act authorizes the Governor in Council to make regulations necessary for the purposes of carrying out the Act and sets out offences and penalties for failure to comply with the Act, including an administrative monetary penalty regime.

The Minister of Finance is responsible for this Act; however, the Minister of Public Safety and Emergency Preparedness has administrative responsibilities for the cross-border reporting regime.

The Act includes a requirement for a five-year parliamentary review. The Third Parliamentary Review commenced in February 2018 when the House of Commons Standing Committee on Finance (FINA) launched a statutory review of the PCMLTFA. To support the work of FINA the Department of Finance issued a discussion paper in February 2018, seeking feedback from Canadians on areas of vulnerability in Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. FINA issued its report in December 2018 and the Government tabled a response in early 2019. The response indicated that the Government substantively agrees with the direction of the majority of the Committee's recommendations. A number of amendments were made through the Budget Implementation Act, 2019 aimed at strengthening the regime.

Protection of Residential Mortgage or Hypothecary Insurance Act

The Minister of Finance is authorized under this Act to provide protection in respect of certain mortgage (or hypothecary) insurance contracts in order to support the efficient functioning of the housing finance market and the stability of the financial system in Canada and to mitigate the risks arising from the provision of that protection.

The Minister of Finance's various powers under this statute include the ability to designate approved mortgage insurers, suspend an approved mortgage insurer's designation, impose capital adequacy requirements on approved mortgage insurers, approve the establishment of an approved mortgage insurer's subsidiary, impose conditions on certain business activities of approved mortgage insurers, demand information from approved mortgage insurers, make payments out of the Consolidated Revenue Fund to beneficiaries in certain circumstances, and manage the aggregate outstanding principal amount protected under the statute.

The Minister of Finance can also make regulations under the Act setting out criteria that mortgage or hypothecary loans must meet in order to be eligible for insurance that would be guaranteed under the Act.

Royal Canadian Mint Act

The Royal Canadian Mint (the Mint) is established by this Act to mint coins in anticipation of profit and to carry out related activities. The Mint is an agent of the Crown for all purposes and reports to Parliament through the Minister of Finance.

The Mint's Board consists of the Master of the Mint, who is the President and CEO of the corporation, the Chairperson of the Board and the seven to nine other directors. The Master and the Chairperson are appointed by the Governor in Council for terms that the Governor in Council considers appropriate. Other board members are appointed by the Minister of Finance with the approval of the Governor in Council for a term up to four years.

The Mint is the sole provider of circulation coins for Canada. The Governor in Council determines the design of any circulation coin to be issued, and may determine any characteristic of a circulation coin. Non-circulation coins are a primary business line for the Mint. Although the Governor in Council determines the denomination of non-circulation coins, the Mint submits the characteristics and design of non-circulation coins to the Minister of Finance for approval.

Special Import Measures Act

This Act governs the imposition of anti-dumping and countervailing duties on imported goods. The Act came into force in 1984 and has been amended a number of times to implement commitments under bilateral, regional and multilateral trade initiatives (e.g., NAFTA and the WTO).

The Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT) share responsibility for the administration of the Act. The CBSA is responsible for determining whether imported goods have been dumped or subsidized and the CITT is responsible for determining whether the relevant Canadian industry has been injured by such imports. Under the Act, the CITT also conducts investigations, when warranted, into whether the imposition of anti-dumping or countervailing duties is in the public interest.

The Minister has legislative and policy responsibility for the Act.

Tax Back Guarantee Act

The Tax Back Guarantee Act provides that any imputed interest savings from federal debt reduction each year must be applied to measures that provide tax relief for individuals. The Act also commits the Minister to report publicly at least once a year on the interest savings and the measures to which they have been applied under the Guarantee. The Act imposes no obligation on the Government until such time as the Government records a budgetary surplus that reduces the federal debt.

Trust and Loan Companies Act

The Trust and Loan Companies Act (TLCA) includes provisions relating to incorporation, continuance and discontinuance, corporate governance, election and removal of directors, shareholders' meetings, capital structure, business and investment powers, related party transactions, and regulatory intervention. The Minister's powers, duties and functions under the TLCA are largely the same as those described under the Bank Act. The key differences are that trust and loan companies may provide trustee services, face greater restrictions on their commercial lending activities and are not subject to wide ownership rules.

The Act includes a five-year sunset clause. Following the latest financial sector review, the sunset date was extended to June 21, 2023 via the Budget Implementation Act, 2018, No. 1.

Winding-up and Restructuring Act, Parts II and III

Most corporations are subject to the Bankruptcy and Insolvency Act; banks, insurance companies, associations (to which the Cooperative Credit Associations Act applies) and trust and loan companies are, however, subject to the Winding-up and Restructuring Act,which sets out the rules applicable to the winding-up of financial institutions. It permits, under court supervision, the orderly liquidation of such institutions. Parts II and III of the Act set out special rules applicable to the winding-up of foreign bank branches and insurance companies respectively. The Minister of Innovation, Science and Economic Development is responsible for Part I of the Act and the Minister of Finance is responsible for Parts II and III.


1 The Minister of Finance is the responsible minister for all budget implementation acts although not expressly named as such in each Act.

2 Although not named as a responsible minister for the Canada Pension Plan (the responsible ministers are the Minister of Families, Children and Social Development and the Minister of National Revenue), the Minister of Finance has substantial duties under this Act and is jointly responsible with the Minister of Families, Children and Social Development for laying an annual report on the administration of the Act before Parliament.

3 The President of the Treasury Board also has responsibilities under this Act.

4 The President of the Treasury Board and the Receiver General for Canada also have responsibilities under this Act.

5 Except for ss. 24.1 to 39 of the Act, for which the Minister of Public Safety and Emergency Preparedness is responsible.

6 The Minister of Finance is designated as responsible minister by Order in Council P.C. 2011-0584 dated May 18, 2011 (SI/2011-49).

7 The Minister of Finance is designated as responsible minister by Order in Council P.C. 1989-516 dated March 23, 1989 (SI/89-98).

8 The Minister of Finance is designated as responsible minister by Order in Council P.C. 1989-515 dated March 23, 1989 (SI/89-97).

9 The Minister of Finance is designated as responsible minister of the purposes of Part II of the Act (except ss. 46-47) as it relates to the Members of Parliament Retiring Allowances Act by Order in Council P.C. 1983-4091 dated December 22, 1983 (SI/84-6).

10 The Minister of Finance is designated as responsible minister by Order in Council P.C. 1993-1673 dated August 18, 1993 (SI/93-173).

11 The Minister of Finance is designated as responsible minister by Order in Council P.C. 1993-1674 dated August 18, 1993 (SI/93-174).

12 The Minister of Finance is designated as responsible minister by Order in Council P.C. 1989-514 dated March 23, 1989 (SI/89-96).

13 Since no minister has been named or designated as responsible minister, the Act provides that the responsible minister is the Minister of State (Finance and Privatization).

14 This division of the Budget Implementation Act, 2019, No. 1 (BIA 1, 2019)provides a framework that allows payment out of the Consolidated Revenue Fund (CRF) for climate action support. The Minister of Finance is responsible for specifying which ministers can requisition such payment out of the CRF, which amounts can be spent by those ministers up to a total amount calculated by a formula established in the BIA 1, 2019 and in respect of which provinces those amounts can be spent. The Minister of Finance can also stipulate terms and conditions in respect of the payments out of the CRF.

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