How Finance Works

Table of contents

Mandate, structure, and management of the department

  1. Overview
  2. Structure and Management
  3. Finance Portfolio Organizations and Responsibilities
  4. Relationships with International Groups and Organizations
  5. Minister's Responsibilities for Appointments
  6. Federal-Provincial Relations
  7. Legislation and Statutory Responsibilities
  8. Branch Overview Decks

Overview

Department of Finance Legislation and Statutory Responsibilities

The Minister of Finance has broad responsibility for the overall stewardship of the Canadian economy. As well, the Minister is responsible for federal fiscal policy, tax policy, the $81.7 billion system of federal transfers to provinces and territories (e.g., the Canada Health Transfer, Canada Social Transfer, Equalization and Territorial Formula Financing), and the regulation of financial sector policies. The Minister’s mandate has a critical pan-Canadian focus, and is a senior leader at the Cabinet table and provides critical support to the Prime Minister.

Statutory Responsibilities

The Minister’s statutory responsibilities fall into three categories:

  1. statutes for which the Minister of Finance is named as the responsible minister, or those statutes that although they do not identify a responsible Minister, fall within the Minister of Finance’s responsibility (a total of 63 statutes, described in full detail in Section 7 in your binder);
  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 their 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” (a total of 15 statutes, described in full detail in Section 7 in your binder); and
  3. statutes under which the Minister of Finance has assigned powers, duties and functions but for which another minister is responsible to Parliament (a total of 78 statutes, described in full detail in Section 7in your binder).

Of particular importance are those responsibilities outlined in the Financial Administration Act, the Bank Act, and the Federal-Provincial Fiscal Arrangements Act.

Finance Portfolio Organizations and Responsibilities

The Minister of Finance has statutory responsibility for several crown corporations and agencies:

In addition, there are 6 crown corporations and 2 other organizations for which the Minister has some statutory responsibility. the Minister also has responsibilities flowing from a number of agreements between the Government of Canada and not-for-profit corporations. A full description of the Minister’s portfolio is contained in Section 5 of your binder.

Relationships with International Groups and Organizations

The Minister of Finance has a wide range of international responsibilities with respect to international trade, finance and development. The Minister is responsible for Canada’s import policy and legislation. The Minister is also the Canadian Governor for the World Bank Group, the International Monetary Fund, the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development. Together with the Ministers of Foreign Affairs and International Development, the Minister is charged with the management of the International Assistance Envelope. In addition, the Minister is called upon to attend a range of international meetings of Finance Ministers, including the G7, G20, the OECD, and APEC. Full details of the Minister’s responsibilities as they relate to international groups and organizations are included in Section 6 of your binder.

Federal-Provincial Relations

Major federal transfers help provincial and territorial governments finance various programs and services. The Canada Health Transfer is the primary federal contribution to health care in Canada and is the largest major transfer to provinces and territories. The Canada Social Transfer is a block transfer to provinces and territories in support of post-secondary education, social assistance and social services, early childhood development and early learning and childcare. Equalization and Territorial Formula Financing ensure that provincial and territorial governments have sufficient revenue to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.

In 2020-21, major transfer payments will represent over $81 billion:

The Minister and the Department of Finance have a long-established process for consultations with provinces and territories. The consultative process largely consists of meetings at various levels, including among Finance Ministers once or twice a year. Senior Finance officials chair several committees that serve as a consultative venue for an exchange of ideas, including on taxation, fiscal, and economic issues. A full list of committees is included in Section 7 in your binder.

Structure and Management

A full organizational chart is included in Section 2 of your binder.

Key Stakeholders by Sector

A list of stakeholders by sector is available upon request.

2020-2021 Departmental Budget

The Department has an operating budget of $105.5 million and a staff of 812 full-time equivalents (FTEs), excluding exempt staff working in the office of the Minister of Finance. In addition, the Department is responsible for the expenditure of roughly $99.5 billion in statutory items composed mainly of major transfers to other levels of government (e.g., Canada Social Transfer, Canada Health Transfer, etc.) and public debt charges.

Department of Finance

Description immediately follows the chart.
Figure 1 – Text version

Minister of Finance - Chrystia Freeland

Minister of Middle Class Prosperity and Associate Minister of Finance - Mona Fortier

Deputy Minister - Michael Sabia - Effective December 14, 2020

Associate Deputy Minister and G7/G20 & FSB Deputy for Canada - Ava Yaskiel

Associate Deputy Minister – Vacant

Special Advisor - Kent Howie

Special Advisor - Tim Duncanson

Chief of Staff - Aysha Mawani

Director, Internal Audit and Chief Audit Executive - Kari Swarbrick

Assistant Deputy Minister - International Trade and Finance Katharine Rechico

  • Associate Assistant Deputy Minister - Patrick Halley
  • Director General International Finance and Development - Martin Tabi
  • Director General International Policy and Analysis - Isabelle Amano
  • Director General International Trade Policy - Michèle Govier

Assistant Deputy Minister Economic and Fiscal Policy - Nicholas Leswick

  • Associate Assistant Deputy Minister - Alison McDermott
  • Director General Economic, Analysis and Forecasting - Julie Turcotte
  • Director General Fiscal Policy - Brad Recker
  • Director General Economic Studies and Policy Analysis - Claude Lavoie

Assistant Deputy Minister Economic  Development and Corporate Finance - Richard Botham

  • Associate Assistant Deputy Minister - Evelyn Dancey
  • Director General Corporate Finance, Natural Resources and Environment - Samuel Millar
  • Director General Sectoral Policy Analysis - Tasha Hanes
  • Director General Micro Economic Policy - Greg Reade

Assistant Deputy Minister Federal-Provincial Relations and Social Policy - Michelle Kovacevic

  • Associate Assistant Deputy Minister - Tushara Williams
  • Director General Social Policy Omar - Rajabali (a)
  • Director General Federal-Provincial Relations - Galen Countryman
  • Director General Indigenous Policy - Alexandrea Howard

Assistant Deputy Minister Financial Sector Policy Leah Anderson

  • Associate Assistant Deputy Minister - Soren Halverson
  • Director General Funds Management - Nicolas Moreau
  • Director General Financial Crimes and Security Division - Lynn Hemmings / Justin Brown (a)
  • Director General Financial Institutions Richard - Bilodeau
  • Director General Financial Stability and Capital Markets - Robert Sample
  • Director General Financial Services Division - Erin O'Brien

Senior Assistant Deputy Minister Tax Policy - Andrew Marsland

  • Assistant Deputy Minister, Tax Legislation - Shawn Porter
  • Associate Assistant Deputy Minister, Analysis - Miodrag Jovanovic
  • Director General Intergovernmental Tax Policy, Evaluation and Research - Michelle Adkins
  • Director General Tax Legislation - Ted Cook
  • Director General Business Income Tax - Maude Lavoie
  • Director General Sales Tax - Phil King
  • Director General Personal Income Tax - Pierre LeBlanc

Assistant Deputy Minister Consultations and Communications - Sarah Lawley

  • Director General - Marie-Elise Rancourt
  • Senior Director Communication Strategy - Stephanie Rubec
  • Senior Director Public Affairs and Operations - Akim Thibouthot
  • Director Access to Information and Privacy - Josh Keon

Assistant Deputy Minister Law Branch - Isabelle Jacques

  • Executive Director and Senior General Counsel Finance Legal Services - Jennifer Aitken
  • General Counsel and Executive Director - Robert Wong
  • Director Values and Ethics - Greg Gauthier

Assistant Deputy Minister Corporate Services - Edward Poznanski

  • Director General, Financial Management & CFO - Darlene Bess
  • Director General and Chief Information Officer Information Management and Technology - Philippe Lajeunesse
  • Director General Human Resources, Security, and Planning Directorate - Janelle Wright

Finance Portfolio Organizations and Responsibilities

Crown corporations part of the finance portfolio, for which the minister of finance has statutory responsibility

A. Bank of Canada (Tiff Macklem, Governor; Carolyn Wilkins, Senior Deputy Governor)

Relationship to Minister

The Bank of Canada is Canada's central bank, the corporation directly responsible for Canada’s monetary policy. The Bank of Canada Act provides that the Bank shall be under the management of the Board of Directors composed of the Governor, a Senior Deputy Governor, and twelve independent directors. The Minister of Finance, with the approval of the Governor in Council, appoints the directors for three-year terms. The Deputy Minister of Finance or designate sits on the Board and is a member of the Executive Committee but does not have a vote.

The Governor of the Bank, who chairs the Board, and the Senior Deputy Governor are appointed by the independent directors with the approval of the Governor in Council to serve during good behaviour for seven-year terms. Both can be reappointed. The remuneration of the Governor and Senior Deputy Governor, as well as the directors, must be approved by the Governor in Council. The current Governor was appointed on June 2, 2020.

The Bank is exempt from Part X of the Financial Administration Act and is thus not required to submit a corporate plan for approval by Treasury Board. The Board of Directors is solely responsible for setting spending priorities through the Bank’s annual budget process. The Bank prepares an annual report that the Minister of Finance must table in Parliament. The Minister must also table the Bank’s Annual Report to Parliament on the Administration of the ATI and Privacy Acts.

In carrying out its responsibilities, the Bank maintains close communication with the government. Officials from the Department of Finance work closely with colleagues at the Bank, particularly on issues related to macroeconomic performance, debt management, and financial sector regulation. In addition, the Act requires that the Minister of Finance and the Governor consult regularly on monetary policy with respect to its relation to economic policy but indicates that, in case of conflict, the Minister of Finance is ultimately responsible for monetary policy.

Relationship to Department

The Bank of Canada is responsible for the design and production of bank notes. Under the Bank of Canada Act, the Minister must approve the composition and design of bank notes. 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 of Canada 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 name of the Minister of Finance. The Governor is a member of the Senior Advisory Committee (SAC)Footnote 1 chaired by the Deputy Minister of Finance and a member of the Financial Institutions Supervisory Committee (FISC)Footnote 2.

The Bank of Canada is responsible under the Payment Clearing and Settlement Act to oversee core payment systems in Canada. The Governor of the Bank can designate payment systems as systemically important, with the approval of the Minister of Finance, if they can trigger or transmit major shocks across the domestic or international financial system due to the size or the nature of the payments they process. The Governor of the Bank can also designate, with the approval of the Minister of Finance, other payment systems as prominent if their failure or disruption could cause a significant adverse effect on economic activity in Canada by impairing the ability to make payments or producing a general loss of confidence in the overall Canadian payments system.

Significance

The Bank of Canada has a major influence on the economy. Its duties 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. Financial markets, the business community, and economic analysts in Canada closely monitor the Bank of Canada’s actions.

The Bank receives no appropriations from government. The main source of the Bank’s revenue is interest earned on holdings of federal government securities.

The Bank of Canada remits its profit to the government quarterly. In 2019, this amount totalled
$1.0 billion.

B. Canada Deposit Insurance Corporation (Peter Routledge, President and CEO; Robert Sanderson, Chair of the Board of Directors)

The Canada Deposit Insurance Corporation’s (CDIC) mandate is 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. CDIC also acts as the resolution authority for its members. This mandate is to be carried out for the benefit of those with deposits in CDIC member institutions, and in such a manner that minimizes the corporation’s exposure to loss.
CDIC members include federally incorporated deposit-taking institutions and any similar provincially incorporated institutions that are authorized by provincial legislation to apply for such deposit insurance.

The Minister has a number of duties relating to the operation of CDIC. Under Part X of the Financial Administration Act (FAA), the Minister recommends CDIC’s Corporate Plan for Governor in Council approval. As part of this process, the Minister recommends that Treasury Board approve CDIC’s operating and capital budgets, as well as its objectives for the planning period, the strategy to achieve those objectives, and its expected performance compared to its objectives. Annually, the Minister must also approve CDIC’s borrowing plan. The Minister can authorize CDIC to borrow from the Government of Canada or capital markets (currently up to a maximum of $25 billion) in order for it to make payments to depositors if a member institution fails. The Minister also approves the deposit insurance premiums CDIC charges member institutions, and approves any change in the formula used to calculate the premiums. Pursuant to the FAA, the Minister must also approve and table in Parliament the annual Summary of the Corporate Plan, as well as the CDIC Annual Report.

The CDIC Act establishes the various powers and tools CDIC can use to resolve one of its member institutions in case of failure. CDIC would assess possible resolution options with a view to formulate a recommendation to the Minister of Finance. The Minister would then, if they are of the opinion that it is in the public interest to do so, recommend to the Governor in Council that an order be made to execute the resolution strategy. The Governor in Council would make the final decision to enter the resolution process. The process would then be led by CDIC according to this decision. CDIC must pursue a strategy that will minimize its exposure to loss, unless exempted to do so by the GIC in an order. The GIC would make this exemption if the Minister (after consultation with the CDIC Board, the Superintendent of Financial Institutions, and the Governor of the Bank of Canada) is of the opinion that loss minimization might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Relationship to Department

The Deputy Minister of Finance is an ex-officio member of the CDIC Board of Directors. The Department works with CDIC and the Office of the Superintendent of Financial Institutions regarding financial institutions on their respective watch lists. The President of CDIC is a member of the SAC chaired by the Deputy Minister of Finance and a member the FISC chaired by the Superintendent of Financial Institutions.

Significance

CDIC has an important safety net role that helps maintain the stability of the financial sector. In 2019-20, it collected $668 million in insurance premiums and had approximately $5.7 billion in an ex ante fund to fund resolutions for problem financial institutions and future financial institution failures for CDIC member institutions. CDIC has 143 full time employees and is funded through the premiums it collects from member institutions.

Bill C-13 An Act respecting certain measures in response to COVID-19

Canada’s deposit insurance framework is established under the Canada Deposit Insurance Corporation Act. Bill C-13 amended the Canada Deposit Insurance Corporation Act to allow the Minister of Finance to increase the deposit insurance coverage limit until September 30, 2020.
Currently, CDIC insures eligible deposits held at its member institutions up to a maximum of
$100,000 per deposit per insured category.
Deposit insurance protects depositors’ savings up to the insured maximum. It reinforces public confidence in the financial system and promotes financial stability.
The legislation allows the Minister to respond quickly to protect financial stability and maintain consumer confidence during these extraordinary events. There is no intention to change the deposit insurance limit at this time.

C. Canada Development Investment Corporation (Stephen Swaffield, Chair of the Board of Directors; Michael Carter, Executive Vice President)

The Canada Development Investment Corporation (CDEV) is a Schedule III Part II Crown corporation under the Financial Administration Act, and an agent of Her Majesty. CDEV’s initial mandate was to manage Crown corporations and other government investments assigned to it, and to divest these holdings when appropriate. Since 2009, the CDEV has been mandated to assist the government by reviewing assets (e.g., commercially-oriented Crown corporations, airports), by securing expert third party financial, technical and strategic advice for the government on specific assets, and in acting as the government’s agent in the sale of Crown corporations (e.g., Ridley Terminals Incorporated). CDEV also has a role in fulfilling Canada’s obligations to the government of Newfoundland and Labrador under the 2019 Hibernia Dividend Backed Annuity Agreement. * Sentence redacted *

At present, the Corporation has four wholly-owned subsidiaries:

Relationship to Minister

The Minister of Finance is the Minister responsible to Parliament for the Canada Development Investment Corporation. Under the provisions of Part X of the Financial Administration Act (FAA) the Minister of Finance makes recommendations to the Governor-in-Council (GIC) on appointments to the Board of Directors, including the chairperson. The Minister is also required to annually submit CDEV’s five-year corporate plans and capital budgets for Treasury Board consideration and approval. The Minister of Finance is also required to table:

Relationship to Department

The department provides advice to the Minister of Finance with respect to CDEV’s annual Corporate Plans and Budgets, as well as on issues concerning CDEV and its subsidiaries. CDEV supports the work of Finance officials by securing expert third-party advice, on an as-requested basis, in the context of the Corporate Asset Review.

In 2018, CDEV’s joint auditors, KPMG and the Auditor General, completed a special examination and identified an issue that CDEV was not in compliance with the FAA as the Executive Vice President has not been appointed by the GIC but was performing the duties of a President. The department has been working with CDEV and PCO to develop a process that would lead to a GIC-appointed President in the future.

Significance

As a federal institution reporting to Parliament through the Minister of Finance, CDEV brings unique expertise in the management and divestiture of commercial assets.

D. Royal Canadian Mint (Marie Lemay, President and Chief Executive Officer; Phyllis Clark , Chair of the Board of Directors)

The Royal Canadian Mint (the Mint) was established in 1908 as a branch of the Royal Mint in Great Britain, and it remained so until 1931. In that year, the RCM became a branch of the Department of Finance. In 1969, pursuant to the Royal Canadian Mint Act (RCMA), the Mint became a Crown corporation. Since 2011, the Mint has reported to Parliament through the Minister of Finance. Previously, the Mint had reported to Parliament through the Minister of Transport.

The Mint’s legislated mandate is to “mint coins in anticipation of profit and to carry out other related activities”. The Mint’s core activities are to produce the circulation and non-circulation coins of Canada, manage the coinage system and provide advice to the Minister of Finance on all matters related to coinage. The Mint has four main business lines: Canadian Circulation, Foreign Circulation, Numismatics, and Bullion Products & Services.

Relationship to Minister

Part I of the Currency Act, dealing with the responsibility of the Minister of Finance, provides for the production, issue, and removal of legal tender. The Mint issues circulation coins that the Government of Canada purchases from the Mint through a Memorandum of Understanding.

The Mint must prepare a Corporate Plan every year, for which the Minister of Finance is responsible for signing and recommending to Treasury Board for approval. The Corporate Plan includes a general description of planned activities looking forward five years. It also includes a Capital Budget, which must be approved by the Treasury Board. The Minister of Finance is also responsible for tabling a summary of the Corporate Plan and Capital Budget, and the Annual

Report before Parliament. The Minister of Finance is also responsible for approving the corporation’s borrowing.

The Minister of Finance is responsible for recommending approval, to the Governor in Council, for changes to circulation coin designs and new coin denominations. The Mint may also produce numismatic coins and precious metal coins. The Minister of Finance is required to approve designs for numismatic coins.

The Board of Directors of the Mint consists of the Chairperson of the Board, the President and CEO (Master of the Mint) and nine other directors. The Board is responsible for overseeing the management of the business, activities and other affairs of the Mint with a view to both the best interests of the Mint and the long-term interests of its sole shareholder, the Government. The Chairperson of the Board is appointed by the Governor in Council, whereas other directors are appointed by the Minister with the approval of the Governor in Council.

Relationship to Department

The Financial Sector Policy Branch provides advice and recommendations to the Minister of Finance with respect to the Mint’s annual Corporate Plan and Capital Budget, borrowing plan, commemorative circulation coin designs, numismatic coin designs, appointments, and a number of other matters related to the Mint.

E. Canada Pension Plan Investment Board (Mark Machin, President and CEO)

The Canada Pension Plan Investment Board (CPPIB) was created in 1998 as part of a federal- provincial agreement to reform the Canada Pension Plan (CPP), of which the reform of the investment policy was a key element. CPPIB is an arm’s length investment corporation with a mandate to invest net new CPP contributions in a diversified portfolio of assets, including equities, fixed income securities, real estate, infrastructure and other assets in the best interests of plan members.

The federal government and the provinces have joint responsibility for CPPIB, including its enabling legislation and associated regulations.

Every three years, as part of the review of the CPP and related CPPIB legislation, the Office of the Chief Actuary issues a report on the financial sustainability of the Plan. Any changes to the CPP and CPPIB Acts require the approval of at least two-thirds of the provinces representing at least two-thirds of the population.

As at March 31, 2020, CPP assets totalled $409.6 billion. Over the past ten years, the average annual nominal rate of return on investment has been 9.9 per cent. The base CPP earned an 8.9 per cent net nominal rate of return on investments for fiscal 2020. The additional CPP account, which began receiving contributions on January 1, 2019, ended the same period with net assets of $2.3 billion. The additional CPP account achieved a return of $13 million or 4.2 per cent for fiscal 2020.

Relationship to Minister

As responsible Minister, the Minister of Finance has a number of statutory obligations in relation to CPPIB.

The Minister of Finance makes recommendations to the Governor in Council on appointments to the twelve-member board of directors, including the chairperson. Prior to making these recommendations, the Minister must consult with the appropriate Ministers of participating provinces (all but Quebec). Appointments to the board are made from a list of qualified candidates prepared by a federal/provincial nominating committee. The Minister of Finance appoints the chairperson of the nominating committee.

The Minister of Finance, in consultation with the provinces, is responsible for proposing any changes to the CPPIB legislative framework to Parliament.

Every six years, the Minister of Finance must cause a special examination of the CPPIB’s internal controls, systems, and management practices. Prior to causing this special examination, which has generally been conducted by CPPIB’s own auditor, the Minister must consult with provincial Ministers.

CPPIB must send the Minister of Finance its quarterly financial statements and annual report. The Minister of Finance must table the latter in Parliament.

The Chief Executive Officer of CPPIB is appointed by the board of directors and is not subject to GIC approval. The board of directors determines the fees paid to directors as well as the remuneration of the CEO.  CPPIB is exempt from Part X of the Financial Administration Act and thus does not submit a corporate plan for approval by the Minister of Finance or Treasury Board.

Relationship to Department

As an arm’s length Crown corporation, the Department has no direct influence over CPPIB’s investment policies or practices, but it does closely monitor its governance, risk management and

factors that may affect the funding of the CPP. The Department is fully engaged with the Office of the Chief Actuary, the provinces, and CPPIB as appropriate, in managing the triennial review process and discussing any changes to CPPIB legislative framework. The Department also acts as the secretariat for the federal/provincial nominating committee, which identifies qualified candidates to serve on the board of directors.

Significance

The CPP is a key pillar of the Canadian retirement income system. As of January 1, 2019, the role of the Plan was expanded through the enhancement of CPP benefits, such that the maximum benefit level will grow from one-quarter to one-third of average work earnings covered by the CPP. Thus, the CPP consists of two parts: the base CPP (benefits in existence prior to the enhancement) and the additional CPP. To ensure the sustainability of the CPP, CPPIB invests monies not immediately required to pay CPP benefits in order to maximize returns without undue risk of loss. At March 31, 2020, CPPIB had 1,824 full-time employees and annual operating expenses of $1.25 billion.

Agencies part of the Finance Portfolio, for which the Minister of Finance has Statutory Responsibility

A. Office of the Superintendent of Financial Institutions (OSFI) (Jeremy Rudin, Superintendent)

The Office of the Superintendent of Financial Institutions (OSFI) is an independent federal government agency that regulates and supervises more than 400 federally regulated financial institutions and 1,200 pension plans to determine whether they are in sound financial condition and meeting their requirements.

OSFI’s mandate is:

To foster sound risk management and governance practices through the advancement of a regulatory framework designed to control and manage risk.

To supervise federally regulated financial institutions and pension plans to determine whether they are in sound financial condition and meeting regulatory and supervisory requirements.

To monitor and evaluate system-wide or sectoral developments that may have a negative impact on the financial condition of federally regulated financial institutions.

To protect the rights and interests of depositors, policyholders, financial institution creditors and pension plan beneficiaries while having due regard for the need to allow financial institutions to compete effectively and take reasonable risks.

OSFI reports to Parliament through the Minister of Finance. Although the Minister is responsible for OSFI, the Superintendent is independently responsible for the development of supervisory guidelines and regulations (such as capital and liquidity requirements) and the evaluation of the financial conditions of federally regulated financial institutions.

OSFI also administers the application process for transactions requiring Ministerial approval under the federal financial institutions statutes, such as a significant change in ownership and the incorporation or dissolution of an institution, and makes a recommendation to the Minister.

The Minister tables OSFI’s Annual Report in Parliament each year. The Minister also submits OSFI’s Departmental Plan and Departmental Results Report to the Treasury Board.

Relationship to Department

OSFI is required under the OSFI Act to establish a Financial Institutions Supervisory Committee (FISC) consisting of the Superintendent, the Governor of the Bank of Canada, the Chair 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. OSFI also briefs the Minister regarding companies on OSFI’s watch list. The Superintendent is a member of the Senior Advisory Committee (SAC) chaired by the Deputy Minister of Finance and a Director of the CDIC Board.

Significance

In 2019-20, OSFI’s estimated total expenses is $168.3 million and approximately 780 full-time employees in offices located in Ottawa, Montreal, Toronto, and Vancouver. OSFI is funded mainly through assessments on the financial institutions and private pension plans it regulates and to a small extent, a user-pay program for selected services that are issued pursuant to a statutory authority. OSFI also receives an annual government appropriation (about $1 million in 2019-20) for actuarial services related to public sector employee pension and insurance plans.

B. Financial Consumer Agency of Canada (Judith Robertson, Commissioner)

The Financial Consumer Agency of Canada (FCAC) has the responsibility to supervise federally regulated financial institutions to determine whether they are in compliance with the consumer provisions in the financial institutions and payments statutes. In addition, the FCAC monitors voluntary codes of conduct designed to protect the interests of consumers, undertakes research on trends and emerging issues that impact consumers, and collaborates and coordinates activities with stakeholders to strengthen the financial literacy of Canadians. The Agency is headed by a Commissioner, who is empowered to administer the Financial Consumer Agency of Canada Act, and reports to the Minister of Finance on all matters within its mandate.

The Minister approves the FCAC’s corporate/financial documents, such as the Annual Report, which are tabled in Parliament, as well as a business plan that is made public. In addition, the financial institutions statutes require that the Commissioner of the FCAC, at least once in each calendar year, report to the Minister on the FCAC’s operations and on federally regulated financial institutions’ compliance with the legislative and regulatory consumer protection measures. The Commissioner must report to the Minister on any other special examinations carried out during the year.

FCAC employs about 143 people (with planned increases over the next three years) with an overall planned spending of $38.4 million for 2020-21 funded through assessments on federally regulated financial institutions (estimated at $33.4 million for 2020-21) and by an annual statutory appropriation of $5 million to support its financial literacy activities. However, the FCAC submits on an annual basis a request for the Minister’s approval to borrow from the Consolidated Revenue Fund (CRF), in order to allow it to carry out its activities, as the assessments from financial institutions are collected only once per year.

Relationship to Department

The FCAC is an independent body charged with regulatory functions under the financial institutions’ statutes. The Minister of Finance presides over, and is responsible for, the FCAC. In formulating policy advice, Finance maintains contacts with the FCAC with regards to changes affecting consumers and small businesses. The Commissioner is a member of the Financial Institutions Supervisory Committee (FISC), a Director of the CDIC Board and a member of the Senior Advisory Committee (SAC) chaired by the Deputy Minister of Finance.

Significance

FCAC plays a complementary role to OSFI’s, ensuring compliance with the federal consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies. It also plays a key role in providing consumers with accurate and objective information about financial products and services through its financial literacy initiatives. Budget Implementation Act 2018, No. 2 introduced significant legislative amendments to expand the mandate of the FCAC and provide it with new powers and tools to further empower and protect financial consumers. The new mandate and powers for the FCAC have come into force, and the FCAC and Finance are working together to implement the remaining elements of the new Financial Consumer Protection Framework, including new and enhanced measures that will further protect and empower consumers.

C. Canadian International Trade Tribunal (Jean Bédard, Chairperson)

Relationship to Minister

The Minister of Finance is designated, under the Canadian International Trade Tribunal Act, as the Minister responsible for the Canadian International Trade Tribunal (CITT). In this regard, the CITT reports to Parliament through the Minister of Finance (i.e., the CITT is required to submit an annual report on its activities to the Minister of Finance, who in turn is required to submit a copy of the report to Parliament). The Administrative Tribunals Support Service of Canada (ATSSC) provides support services (e.g., corporate services, registry services, research and legal services) for the CITT . The ATSSC consolidates the support services of 11 administrative tribunals and is part of the portfolio of the Minister of Justice. The CITT itself remains part of the Finance portfolio. It is currently comprised of one Chairperson, five permanent Members, and one temporary Member, all appointed by the Governor in Council. The CITT is an independent and quasi-judicial body and, as such, the Minister of Finance maintains a strict arms-length relationship with the CITT.

Relationship to Department

The Department has a central role in the formulation and management of Canada’s import policies and in the evaluation of domestic economic policies against Canada’s international obligations and relations with other countries. Day-to-day responsibility for CITT-related issues resides with the Department’s International Trade Policy Division.

Significance

The CITT is an administrative tribunal operating within Canada's trade system. It is responsible for the conduct of anti-dumping and countervailing duty injury inquiries under the Special Import Measures Act and safeguard injury inquiries under the CITT Act. It also conducts inquiries into any economic, tariff, trade and commercial matters that may be referred to it by the Governor in Council or the Minister of Finance. As well, the CITT hears appeals of decisions of the Canadian Border Services Agency and the Canada Revenue Agency relating to customs and excise matters, and provides for the challenge of procurement decisions by suppliers who believe that the federal government breached its obligations under certain trade agreements during the solicitation or evaluation of bids, or in the awarding of contracts by federal government departments.

The main laws and regulations governing the work of the Tribunal are the CITT Act, the Special Import Measures Act, the Customs Act, the Excise Tax Act, the Canadian International Trade Tribunal Regulations, the Special Import Measures Regulations, the Canadian International Trade Tribunal Procurement Inquiry Regulations and the Canadian International Trade Tribunal Rules (Rules).

D. Financial Transactions and Reports Analysis Centre of Canada (Nada Semaan, Director and Chief Executive Officer)

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit and anti-money laundering/anti-terrorist financing (AML/ATF) regulator. Its mandate is set out in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Its purpose is to facilitate the detection, prevention and deterrence of money laundering and terrorist financing activities, while ensuring the protection of personal information under its control.

FINTRAC was established as an independent agency, operating at arm’s length to the police and other departments and agencies of government to whom it can provide financial intelligence (e.g., RCMP, CRA, CSIS). Its mandate and powers were designed to safeguard individual privacy and Charter rights. FINTRAC operates within the scope of the PCMLTFA and its regulations. FINTRAC does the following:

Relationship to Minister

While FINTRAC is an independent agency, the Minister of Finance is responsible for the Centre. The Minister of Finance has responsibility for reviewing and approving FINTRAC’s corporate/financial documents, such as the Annual Report, the Departmental Plan, and the Departmental Results Report, which are tabled in Parliament. FINTRAC also provides an annual report to the Minister on the measures it takes to ensure the compliance of reporting entities with their obligations under the PCMLTFA. FINTRAC, with the Minister’s approval, enters into Memoranda of Understanding with other countries for the sharing of information between FINTRAC and foreign financial intelligence units.

Relationship to Department

The Department has overall responsibility for policy co-ordination of the Canadian AML/ATF Regime, and thus works closely with FINTRAC, which is the only Canadian organisation whose sole mandate is related to AML/ATF. The Department advises the Minister of Finance on their responsibility for oversight of FINTRAC and works closely with FINTRAC and other Regime partners to advise the Minister on emerging developments related to AML/ATF and the PCMLTFA and its regulations. The Department also collects performance measurement indicators from Regime partners, including FINTRAC, on a regular basis.

Significance

For 2019-20, FINTRAC’s spending was $55.3 million with 352 full-time equivalent employees. FINTRAC supervises approximately 31,000 reporting entities including financial institutions, securities dealers, money services businesses, accountants, casinos, dealers in precious metals and stones, and life insurance and real estate companies. In 2019-20, FINTRAC received over 30 million financial transaction reports. FINTRAC’s main office is in Ottawa with regional offices in Toronto, Montreal, and Vancouver.

E. Canadian Securities Regulation Regime Transition Office (Doug Hyndman, President and CEO)

The Canadian Securities Regulation Regime Transition Office (CSTO) provides advice to the Government of Canada on enhancing systemic risk management and criminal enforcement in Canada’s capital markets in support of advancing the proposed federal Capital Markets Stability Act (CMSA). The CSTO also supports the Government of Canada’s participation in establishing the proposed Cooperative Capital Markets Regulatory System. The Government is working with the governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Newfoundland and Labrador (most recent signatory (March 2020)), Nova Scotia, Prince Edward Island, and Yukon to establish the Cooperative System.

Douglas Hyndman is the President and Chief Executive Officer of the CSTO (GIC appointee). The CSTO has approximately 20 staff members, with offices in Toronto and Vancouver.

Relationship to Minister

Under the Canadian Securities Regulation Regime Transition Office Act, the CSTO is required to regularly inform the Minister of Finance of its activities and progress, including through the provision of an annual report, which the Minister must table in both Houses of Parliament.
Further, the Act provides that the Minister may:

Relationship to Department

The CSTO provides advice to the Department of Finance Canada on matters related to enhancing systemic risk management and criminal enforcement in Canada’s capital markets, as it relates to advancing the proposed federal CMSA. The CSTO also provides advice on the Cooperative System initiative, including on the legislative framework and implementation, and it manages the provision of federal funds to the Capital Markets Authority Implementation Organization, the precursor body to the Cooperative Regulator.

Significance

The CSTO is comprised of leading securities lawyers and capital markets risk experts who provide high-quality advice to the Department of Finance Canada on all aspects of the establishment of the Cooperative System, with a focus on the proposed federal CMSA as well as implementation and launch options. It also oversees the administration of federal funds contributed to the Capital Markets Authority Implementation Organization (pre-cursor body to the Cooperative System/Regulator) for the implementation of the Cooperative System as well as

reporting to the Department of Finance Canada on the use of those funds, with a view to maximizing their efficient use.

Crown Corporations for which the Minister of Finance has some Statutory Responsibility

A. Business Development Bank of Canada (Michael Denham, President and Chief Executive Officer; Mike Pedersen, Chairperson)

Relationship to Minister

The Minister of Small Business, Export Promotion and International Trade is the designated Minister responsible to Parliament for the Business Development Bank of Canada (BDC). The BDC receives no annual appropriation. As a Crown Corporation, the BDC is governed under provisions of the Financial Administration Act, which provides the Minister of Finance the following powers and duties. Specifically, the Minister of Finance must:

The Minister of Finance’s concurrence or recommendation is also required in several instances under the Business Development Bank of Canada Act (1995). Specifically, the Minister of Finance must:

Relationship to Department

In consultation with Innovation, Science, and Economic Development Canada (ISED), the Department ensures that the BDC has sound capital and risk management strategies. The Capital and Dividend Framework Policy for Financial Crown Corporations provides the BDC and other financial Crown corporations with principals to govern their capital management and dividend policies.

The BDC has also been tasked under Section 21 of the Business Development Bank of Canada Act to carry certain duties and functions and to serve as the agent of the government under the Venture Capital Action Plan initiative (VCAP), the Venture Capital Catalyst Initiative (VCCI), and the Cleantech Scale Up Initiative.

Significance

The BDC’s mandate under the Business Development Bank of Canada Act is to operate as a complementary financial institution to the private sector for addressing the needs of small and medium-sized enterprises (SMEs) with an emphasis on supporting entrepreneurship by providing financing (loans, venture capital and subordinate financing) and consulting services. The BDC has 123 business centres across Canada, serving over 56,000 clients. The BDC provides its services directly to Canadian SMEs on a commercial basis, at rates commensurate with risk.
BDC’s loan portfolio was approximately $32 billion in 2019-20, and is forecast to increase to over $66 billion in 2020-21, to account for the delivery of the COVID-19 response
(e.g., Business Credit Availability Program initiatives).

B. Export Development Canada (Mairead Lavery, President and CEO, Martine Irman, Chairperson)

Relationship to Minister

Export Development Canada (EDC) offers export credit insurance and financing services to support Canadian companies of all sizes pursuing international trade and investment opportunities.

The Minister for International Trade is responsible to Parliament for EDC. The Minister of Finance recommends the approval of EDC’s annual corporate plans and approves its Borrowing Plan. In addition, the Minister of Finance has a direct role in approving transactions proposed under Canada Account, which is an account administered by EDC that the Government may use to support exporters with loans, guarantees or insurance policies in cases where EDC is unable to rely on its Corporate Account due to financial capacity or risk constraints. For example, recent high profile Canada Account transactions include the Government of Canada’s acquisition of the Trans Mountain Pipeline from Kinder Morgan in May 2018, the repayable loan to General Dynamics Land System Canada in August 2019, and the Canada Emergency Business Account in March 2020. The Canada Account is also used to support industrial development in key sectors such as clean technology.

As part of the Government's response to Covid-19, emergency legislation made amendments to the Export Development Act to provide the Minister of Finance with flexibility to establish limits for paid-in-capital, contingent liability, and Canada Account until September 30, 2020. In addition, the Minister Finance and Minister of International Trade may now jointly request EDC to undertake domestic activities.

The Minister of Finance is also responsible, along with the Minister of International Trade, for the regulatory framework regarding EDC’s activities, which is reviewed every ten years. As required in the Export Development Act, a legislative review began in 2018 and a final report was tabled in Parliament on June 20, 2019. The next step in the legislative review process is for the report to be referred to a Parliamentary Committee for study, which has been delayed by the fall 2019 writ period and the Covid-19 pandemic. Following committee review and recommendations, a formal Government response is expected to be advanced.

FinDev Canada, Canada’s Development Finance Institution and subsidiary of EDC, launched its activities in in early 2018. As part of its activities, FinDev offers financing through loans and equity investments to support businesses in low and middle-income countries create jobs and opportunities for sustainable and inclusive growth. As a subsidiary of EDC, its corporate reporting is consolidated within that of EDC.

The Department has key oversight on a broad range of EDC activities. Finance’s interest in EDC relates to its financial market role, the issue of risk management, and the broader public policy role of the Corporation as a financial Crown corporation and Canada’s official export credit agency. For these reasons, the Minister of Finance is responsible to approve EDC’s borrowing plan and routinely exercises its authority to recommend EDC’s Corporate Plan for Treasury Board’s approval. Finance also manages transactions under Canada Account, including setting loan loss provisions in the fiscal framework. Provisions for the entire Canada Account portfolio are revised annually in advance of the publication of the Public Accounts. Finance also leads the Canadian delegation to the OECD Arrangement and the International Working Group (IWG) on export credits, two forums created to govern the use of official export credits.

Significance

EDC is a significant player in financial and insurance markets, facilitating over $100 billion in business per year. The government is financially responsible for the Corporation’s liabilities and directly bears the risks of Canada Account loans and insurance policies, and provisions against those risks.

EDC has played a significant role in the government’s economic response to Covid-19, both through administering government programs (including the Canada Emergency Business Account and elements of the Business Credit Availability Program) and increased support through traditional business lines. The Minister of Finance and the Minister of International Trade can request EDC to support domestic business for period specified by those Ministers; currently, EDC is requested to support domestic business until December 31, 2021.

C. Canadian Commercial Corporation (Carl Marcotte (Interim President and CEO) Douglas Harrison, Chairperson of the Board of Directors)

Relationship to Minister

The Canadian Commercial Corporation (CCC) acts as a prime contractor on behalf of Canadian suppliers in their export transactions with foreign government buyers. In doing so, the Government of Canada, through the CCC, guarantees the performance of Canadian suppliers to foreign governments. CCC’s two primary business lines support Canadian exporters contracting into the defence sector, primarily in the US, and non-defence sectors in foreign government markets.

A substantial share of CCC’s business is exporting defence products to the US under the “US Defence Production Sharing Agreement” (DPSA). CCC does not currently charge cost-recovery fees for this business, but instead uses revenues generated from its other business lines to cross subsidize US DPSA activities further to a diversification strategy launched in 2014. In 2018-19, for example, CCC generated a total of $28.4 million in fees from procurement contracts in various sectors such as defence sector sales to non-US countries, construction and infrastructure projects, clean technologies, and information and communications technologies. * Sentences redacted *

The review, led by Global Affairs Canada, focused on CCC’s public policy role, operational effectiveness, economic impact, and overall fit within the federal trade ecosystem. * Sentence redacted *

The Minister for International Trade is responsible to Parliament for CCC. The Minister of Finance approves the corporation’s Borrowing Plan and exercises the authority to recommend CCC’s Corporate Plan for Treasury Board’s approval. The Minister also has a direct role in approving CCC’s involvement in large capital projects further to the Significant Project Instruction (SPI). The SPI was developed to enhance oversight of CCC activities and requires that the Ministers of International Trade and Finance authorize capital projects over $100 million and all other transactions over $300 million.

Relationship to Department

Finance’s interest in CCC relates to the issue of risk management, borrowing, and the broader public policy role of the Corporation. Finance was also actively involved in the negotiations to restructure the contract governing the Armoured Brigades Program.

Significance

The government is financially responsible for the Corporation’s liabilities, however, CCC is not structured to take on financial risks. * Sentence redacted *

While CCC previously received an annual government appropriation ($15.5M in 2014-15) to fund its core business under the U.S. Defence Production Sharing Agreement (DPSA), this appropriation was phased-out in 2017-18.

D. Farm Credit Canada (Michael Hoffort, President and Chief Executive Officer; Jane Halford, Chair of the Board of Directors)

Relationship to Minister

Farm Credit Canada (FCC) is a Schedule III Part I Crown Corporation under the Financial Administration Act (FAA). Under the Farm Credit Canada Act, its purpose is “to enhance rural Canada by providing specialized and personalized business and financial services and products to farming operations, including family farms, and to those businesses in rural Canada, including small and medium-sized businesses, that are businesses related to farming”. FCC provides financing, insurance, software, learning products and business services to producers, agribusinesses and agri-food operations. FCC does not accept deposits. According to FCC’s annual report for 2019-20, loans receivable were $36.1 billion in 2018-19 and $38.4 billion in 2019-20.

The Minister of Agriculture and Agri-Food is responsible to Parliament for the FCC. However, as a Crown Corporation, FCC is governed under the provisions of the Financial Administration Act (Part X), which provides the Minister of Finance specific powers and duties under statutory provisions.

The Minister of Finance is responsible for approving the amounts and terms and conditions for any borrowings from the capital markets or the Consolidated Revenue Fund. FCC is one of several Crown corporations that participate in the Crown Borrowing Program. As of April 2008, all new borrowings for the corporation, including the rolling over of maturing debt, have been consolidated into the federal debt program. FCC must adhere to the Minister of Finance Guidelines for Market Borrowings by Crown Corporations, the Minister of Finance’s Financial Risk Management Guidelines, and Credit Policy Guidelines for Crown Corporations.

For the purpose of capital injections and at the request of FCC, the Minister of Finance may, with the approval of the Governor in Council, pay FCC (out of the Consolidated Revenue Fund) amounts not exceeding certain limits established through the Farm Credit Canada Act, or such greater aggregate amount as may be authorized from time to time under an Appropriation Act. These payments do not require reimbursement. The Minister of Finance may also, upon request from FCC, lend money to FCC from the Consolidated Revenue Fund, on such terms and conditions, as the Minister deems appropriate.

The Minister of Finance also has discretionary authority over the FCC’s Corporate Plan. Under Section 127(2) of the Financial Administration Act, the Minister of Finance may require that their recommendation, in addition to the recommendation of the Minister of Agriculture and Agri-Food, be obtained before the Corporate Plan or amendment is submitted to the Governor in Council for approval.

Significance

FCC is Canada’s largest agricultural lender delivering financing and other services to 100,000 primary producers, value-added operators, suppliers and processors along the agricultural value chain. FCC competes directly with other financial institutions and credit unions. Over the last decade, its market share has remained relatively constant with gains from 28 per cent in 2016, to
29.3 per cent in 2018. FCC is financially self-sustaining and profitable; * Information redacted *

FCC utilizes a dividend policy that is aligned to the Capital and Dividend Policy Framework for financial Crown corporations, which links dividend payments to its year-end capital adequacy assessment, based on their FCC’s existing internal capital ratio target of 15 per cent. FCC intends to pay in full any capital in excess of the 15 per cent target as dividends the following year. In 2019-20, FCC paid dividends of $394.8 million, with $2.2 billion in dividends projected over the 2020-21 to 2024-25 planning horizon.

E. Canada Mortgage and Housing Corporation (Evan Siddall, President and CEO; Derek Ballantyne, Chair of the Board of Directors)

Relationship to Minister

Canada Mortgage and Housing Corporation (CMHC) is an agent Crown corporation with an overall mandate to promote housing affordability and choice, to facilitate access to housing finance, and to contribute to the well-being of the housing sector. As Canada’s national housing agency, CMHC plays a significant role in administering federal investments in social housing through agreements with provinces and territories and First Nations communities. CMHC also plays a major role in the housing finance system and housing markets through the provision of mortgage loan insurance and securitization programs and through its role as administrator of the covered bond framework. CMHC also undertakes and disseminates research on Canada’s housing market.

The Minister of Families, Children and Social Development has been designated as the Minister responsible to Parliament for CMHC.

However, the Minister of Finance has certain legislated powers and duties, including:

In response to the COVID-19 pandemic, CMHC has taken on additional responsibilities under the Government’s economic response plan, including the administration of the Canada Emergency Commercial Rent Assistance for small businesses, and the Insured Mortgage Purchase Program, which provides stable funding to banks and mortgage lenders in order to ensure continued lending to Canadians.

Relationship to Department

The Department is involved in work in the following key areas:

Significance

CMHC is one of the largest Crown corporations in the Government’s portfolio by assets, liabilities and revenue ($276 billion, $262 billion and $4.7 billion, respectively, at year end 2019). Through its mortgage insurance and securitization operations, CMHC is one of the largest financial institutions in Canada and plays an important role in the housing finance market and the financial sector more broadly. At the end of 2019, CMHC’s insurance-in-force was $429 billion and guarantees-in-force totalled $493 billion. As an agent Crown corporation, the Government fully backs CMHC liabilities, including its borrowings.

F. Canada Infrastructure Bank (Michael Sabia, Chair of the Board of Directors; President and CEO position currently vacant)

Relationship to Minister

The Canada Infrastructure Bank (CIB) is a Crown corporation established in 2017 through legislation with the purpose to invest, and seek to attract investment from private sector investors and institutional investors, in revenue-generating infrastructure projects that are in the public interest. The CIB works with provinces, territories and municipalities to deliver infrastructure in a more efficient and sustainable way by attracting private sector and institutional investors to finance, build and risk manage more infrastructure over the long-term.

The Minister of Infrastructure and Communities is designated as the Minister responsible to Parliament for the CIB. The CIB is governed under provisions of both the Financial Administration Act, and the Canada Infrastructure Bank Act (the CIB Act). The CIB Act gives the Minister of Finance statutory power to provide up to $35 billion out of the Consolidated Revenue Fund to the CIB; responsibility for providing concurrence to CIB corporate plans; and authorities with respect to the provision of loan guarantees by the CIB.

Relationship to Department

The Department is involved in work in the following key areas:

Significance

The CIB is expected to play an important role in the longer term toward closing Canada’s infrastructure deficit and helping jurisdictions to adopt more fiscally sustainable practices around planning, financing and delivering necessary infrastructure for Canadians. The CIB is able to deploy $15 billion in funding on an accrual basis over 11 years ($35 billion on a cash basis).
Budget 2017 announced that the CIB would deliver at least $5 billion in each of the following priority areas: public transit; green infrastructure; and transportation infrastructure that supports trade. Budget 2019 announced the additional priority area of broadband, noting the CIB’s intent to invest up to $1 billion in this asset class, complementing other federal initiatives.

Other organizations for which the minister of finance has some statutory responsibility

A. Office of the Auditor General (Sylvain Ricard, interim Auditor General of Canada)

The Auditor General (AG) is an officer of Parliament, appointed by the Governor in Council under the Great Seal for a term of ten years, and removable from office only on joint address of the Senate and House of Commons.

The AG carries out three main types of legislative audits:

The AG audits federal government departments and agencies, most Crown corporations, and many other federal organizations, and reports to Parliament. The AG is also the auditor for the governments of Nunavut, the Yukon, and the Northwest Territories, and reports directly to their legislative assemblies.

As part of the Minister’s mandate, the AG audits the Public Accounts of Canada and provides an opinion as to whether they present fairly information in accordance with the government’s stated accounting principles. The AG also expresses an opinion on the Annual Financial Report of the Government of Canada which is published by the Department of Finance.

The AG is authorized to investigate and report to the House of Commons (through the Speaker) on how well the financial affairs of Canada have been managed. The AG is required to report once a year and may make up to three other reports in a year, as well as a special report where it is a matter of urgency. Pursuant to the Standing Orders of the House, all reports of the AG are automatically referred to the Standing Committee on Public Accounts.

Relationship to Minister

The AG is independent of the government and reports directly to Parliament through the Speaker. The Minister of Finance has no statutory or Parliamentary responsibilities in respect of the AG. For historical reasons, the appropriations by Parliament to cover the expenditures of the

Office of the Auditor General appear in the Estimates under the Minister of Finance portfolio. As all submissions to Treasury Board require the signature of an authorized Minister, you have been designated to be that Minister with respect to submissions by the Auditor General. This arrangement does not carry any special duties or responsibilities for the Minister of Finance.

Relationship to Department

The AG is the auditor of the Department of Finance and all of the Crown corporations and agencies for which the Minister of Finance is responsible to Parliament, except the Bank of Canada, the Exchange Fund Account and the Canada Pension Plan Investment Board, which are audited by private audit firms.

The AG has specific duties relating to the public debt. Under the Auditor General Act, the AG may audit the accounts and records of any registrars appointed by the Minister of Finance under Part IV of the Financial Administration Act in respect government borrowings. The Minister of Finance may also require that the AG participate in the destruction of redeemed or cancelled debt securities.

Significance

The Reports of the AG generally attract wide-spread Opposition, media and public attention. The Reports often highlight areas where the department/agency/Crown under review can improve in its management of specific programs or on longer-term issues that the AG feels need to be addressed. The analyses and recommendations in these Reports often form the basis of proposed legislative and administrative changes. Parliamentary Committees, especially the House of Commons Standing Committee on the Public Accounts, to whom the Auditor General reports, will conduct hearings on certain elements of his/her reports, requiring departmental attendance and participation. The Committee uses such hearings to make specific recommendations to the Government, which need to be replied to within a prescribed number of days.

B. Canadian Payments Association (Eileen Mercier, Chair of the Board, Tracey Black, President and CEO)

The Canadian Payments Association (CPA), also referred to as Payments Canada, was established in 1980 by an Act of Parliament as a regulated not-for-profit, public-purpose corporation. All Canadian banks are required by law to be members of the CPA and constitute the vast majority of its membership. The CPA’s mandate is:

The Act also identifies public policy objectives for the CPA. It states that the Association will promote the efficiency, safety and soundness of the clearing and settlement systems and will take into account the interests of users.

The CPA’s Board of Directors comprises 13 members; seven independent directors (including its Chair and Vice Chair), five directors representing member institutions, and the President and CEO of the CPA as an ex officio member.

Relationship to Minister

The Minister of Finance exercises public policy oversight over the CPA. The Minister has a directive power over the CPA, which can be used if the Minister is of the opinion that it is in the public interest to do so. The payment clearing and settlement systems operated by Payments Canada, the Large Value Transfer System (for immediate settlement of large value payments) and the Automated Clearing Settlement System (for deferred settlement of retail payments), are overseen by the Bank of Canada.

The CPA must submit a 5-year Corporate Plan on an annual basis for the approval of the Minister. The Minister is also consulted by the Board on any appointments to the CPA’s Stakeholders Advisory Council, a statutory body consisting of users of the payment system, with the mandate to provide counsel and advice to the CPA Board of Directors on payment, clearing and settlement matters and other related issues. As the CPA’s by-laws are statutory instruments, the Minister must also approve any new by-laws or by-law changes. In addition, any changes to CPA rules are subject to a 30-day period of examination by the Minister, during which time the Minister may disallow the rule in whole or in part.

Relationship to Department

The Department works closely with the CPA to discuss, and at times jointly analyze, developments in the payment system, including any prospective rule and by-law changes. The Assistant Deputy Minister (Financial Sector Policy) meets regularly with the CPA Chair and President and CEO, and addresses the Board of Directors at least once per year. In addition, the President and CEO is a permanent member of FinPay, a consultative committee of public and private sector representatives providing advice to the Department on developments related to public policy aspects of payments issues.

Significance

Canada’s clearing and settlement systems enable consumers and businesses to make and receive payments throughout the country quickly and reliably. The vast majority of payments involve moving funds between accounts at different financial institutions. The CPA operates the national clearing and settlement systems that facilitate this flow of funds between institutions and mitigates risk to payment system participants. In 2019, the CPA’s systems cleared and settled
$218 billion worth of payments each day, representing $55 trillion on an annual basis. These include cheques, wire transfers, direct deposits, pre-authorized debits, bill payments, and point- of-sale and online debits.

Banks are required to be members of the CPA and other regulated financial institutions (Caisse Populaires, Credit Unions, Trust Companies, etc.) can voluntarily join. Amendments to the Act came into force in 2015 to transform the CPA’s Board into a majority-independent Board.

The CPA is currently engaged in a multi-year Modernization project to bring about modern payment systems that are fast, flexible and secure, that promote innovation and strengthen Canada’s competitive position. A key outcome of this project will be the replacement of older technological infrastructure with new systems to meet more robust risk management standards and allow for faster, more efficient payments.

C. Capital Markets Authority Implementation Organization (Jill Leversage, Chair of the Board of Directors, and Kevan Cowan, Chief Executive Officer)

The governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Yukon, and Canada are working together to establish the Cooperative Capital Markets Regulatory System, with the aim of enhancing regulatory efficiency, strengthening enforcement and investor protection, and increasing capacity to manage systemic risk in Canada’s capital markets. The Cooperative System would consist of a single regulatory authority administering uniform securities legislation in participating provinces and territories as well as federal systemic risk and criminal enforcement legislation on a national basis.

In 2015, the Council of Ministers of Participating Jurisdictions overseeing the initiative established the Capital Markets Authority Implementation Organization (CMAIO), under federal not-for-profit legislation, to lead the non-legislative aspects of the implementation of the Cooperative System.  The Council appointed CMAIO’s Board of Directors in 2016 and, later that year, the Board selected CMAIO’s Chief Executive Officer. * Sentence redacted *

Relationship to Minister

CMAIO’s Board of Directors is accountable to the Council of Ministers of Participating Jurisdictions, which is comprised of the federal Minister of Finance and the Ministers responsible for capital markets regulation in each provincial and territorial Participating Jurisdiction. CMAIO provides quarterly activity and expenditure reports, as well as annual reports, to the Council of Ministers. Reporting on CMAIO’s funding is set out in the CSTO’s annual report, which the federal Minister of Finance is required to table in Parliament annually.

Relationship to Department

The Department works closely with CMAIO and the other participating provinces and territories on a variety of work streams aimed at executing the launch of the Cooperative System. An important federal focus is ensuring that the Cooperative System provides the right organization and resourcing conditions to effectively administer the federal systemic risk and criminal enforcement legislation, the proposed Capital Markets Stability Act (CMSA).

Significance

Participating jurisdictions originally intended CMAIO’s Board of Directors to become the first Board of Directors of the Cooperative System/Regulator (subject to confirmation by governments). * Sentence redacted *

Other non-statutory obligations

The Minister of Finance has responsibilities flowing from a number of agreements between the Government of Canada and not-for-profit corporations as set out below.

A. Green Municipal Fund (Ben Henderson, Chair of the Green Municipal Fund Council*)

* Please note that the Green Municipal Fund (GMF) operates under the Federation of Canadian Municipalities (FCM). The current President of the FCM is Vicki-May Hamm.

The Green Municipal Fund is an arms-length fund managed by the FCM. The Fund is designed to provide a long-term, sustainable source of financing for municipal environmental projects that improve air, water and soil quality, and to protect the climate. Funding is allocated in five sectors of municipal activity: brownfields, energy, transportation, waste and water.

Between 2000 and 2005, the Government endowed the FCM with $550 million for the Green Municipal Fund ($50 million in grants and $500 million for a revolving fund). Budget 2016 allocated an endowment of $125 million in 2017-18, sourced from green infrastructure funding. Budget 2019 provided additional $950 million in 2019-20 to the Fund for three initiatives that aim to improve energy efficiency in residential, commercial and multi-unit buildings, bringing the total amount of funding transferred from the Government to the Fund to $1.576 billion. A new funding agreement between the Government and FCM to support the transfer of the Budget 2019 resources was completed in March 2019 and may only be amended with the consent of the Minister of Finance and of the three signing ministers Natural Resources, Environment and Climate Change and Infrastructure and Communities.

Relationships with international groups and organizations

The Minister of Finance has a wide range of international responsibilities with respect to international trade, finance and development. The Minister of Finance is responsible for Canada’s import policy and legislation, including the Canadian International Trade Tribunal, as well as certain areas of Canada’s export-oriented financial Crown Corporations. In addition, the Minister of Finance is the Canadian Governor for the World Bank Group, the International Monetary Fund, the European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank.

In addition, the Minister of Finance is called upon to attend a range of international meetings of Finance Ministers, including the G7, G20, the OECD, APEC, Regional Finance Ministers of the Americas, as well as the Commonwealth and La Francophonie.

There are also issues on which the Department regularly engages with the Minister of Finance in support of Canada’s effective engagement on international matters, including international trade and finance. Prominent among these is the joint management (with the Ministers of Foreign Affairs and International Development) of Canada’s International Assistance Envelope. In addition, the China-Canada Strategic Economic Dialogue, international climate finance and managing ongoing and potential new macro financial assistance loans are current priorities.
With respect to international trade, there are issues concerning ongoing global trade frictions including with the U.S. on aluminum.

Group of Seven (G7)

The G7 comprises the seven largest advanced economies: the US, Japan, Germany, France, the UK, Italy, and Canada. With the emergence of the G20 as the main forum for global economic policy coordination, Canada introduced process changes during its Chairmanship in 2010, refocusing the group towards a forum for frank discussion by like-minded major industrialised countries. Communiqués are now only issued as needed. G7 Finance Ministers meet formally once a year, generally a few weeks prior to G7 Leaders Summits. However, they often meet informally on the margins of G20 meetings to coordinate positions. Since the COVID-19 pandemic, Ministers have held frequent calls to coordinate economic support and re-opening measures, and debt-related initiatives.

G7 Leaders meet on an annual basis. Unlike the G20, Finance Ministers and Deputies do not generally attend G7 Leaders’ Summits, given the focus on security and development.

The US holds the G7 2020 Presidency. While the COVID-19 pandemic has occupied much of the US Presidency, the US’s original priorities were in continuity with the Canadian (2018) and French (2019) G7 Presidencies and include coordinating G7 engagement with non-market economies (i.e. China), financial stability, and international taxation. The G7 Leaders’ Summit has been notionally scheduled after the November 3 US presidential election. The UK will assume the G7 Presidency in 2021.

Relationship to Department

The G7 Finance Deputies work program is fluid and wide-ranging, reflecting current events in the global economy, including developments in individual countries, ongoing multilateral efforts to strengthen the international financial architecture, and the schedule of ministerial and other meetings. The Department plays a strong role in preparing Canada’s Deputy and Minister of Finance ahead of G7 meetings and conference calls.

Significance

While Canada supports maintaining the G20 as the premier forum for international economic cooperation, the G7 continues to serve a useful purpose. The G7 Finance Ministers’ track has become more of a forum for frank and informal policy discussions on world economic issues among a small group of like-minded countries. It can also serve as an important forum to develop common positions on issues discussed at the G20.

Group of Twenty (G20)

The Group of Twenty was established in 1999 as a forum for dialogue among economic policy makers from key industrialized countries and “systemically important” emerging markets.
Members include the G7, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, and the European Union. Meetings of the G20 are also supported by the participation of international organizations, such as the International Monetary Fund (IMF), the World Bank and the Financial Stability Board (FSB).

The G20 gained additional prominence in 2008 when the U.S. convened the first G20 Leaders’ Summit in response to the global financial crisis. In the Finance Ministers’ Track, the G20 covers a range of issues, including promoting global economic growth, financial stability, and reform of the international financial architecture. The chair rotates annually among the members. Saudi Arabia holds the chairmanship of the G20 in 2020 and Italy will take on this role in 2021.

Relationship to Minister

The Minister generally attends Summits (alongside the Prime Minister) and Finance Ministers’ and Central Bank Governors’ Meetings. Finance Ministers and Central Bank Governors typically meet 3-5 times per year, and will convene virtually on the margins of the IMF/World Bank Annual Meetings on October 15.  Saudi Arabia is scheduled to host the 2020 Leaders’ Summit on November 21-22 in Riyadh, which will likely be held virtually.

Relationship to Department

Canada’s G20 Deputy is Ava Yaskiel, Associate Deputy Minister, who accompanies the Minister to Ministerial meetings.  G20 Deputies typically meet on the margins of ministerial meetings, and hold stand-alone meetings of their own. Both the Minister of Finance and the Deputy usually attend the annual G20 Leaders’ Summit along with the Prime Minister. Several seminars, workshops and working group meetings involving mid-level officials are also typically held each year. Finance Canada also provides support to the “G20 Sherpa”, the Prime Minister’s personal representative for the G20, typically a Deputy Head-level official at Global Affairs Canada (GAC). This position is currently held by Christopher MacLennan.

Significance

In 2009, Leaders designated the G20 as the premier forum for global economic cooperation. Its annual Summit endorses decisions and policies in a number of areas including financial sector regulation, tax, international financial architecture, and macroeconomic policy. Canada hosted two G20 Finance Ministers Meetings in 1999 and 2002, and a G20 Summit in Toronto in 2010. Canada is eligible to host again in 2025.

International Monetary Fund (IMF)

Relationship to Minister

The Minister of Finance is Canada’s Governor at the IMF and is responsible for the management of Canadian interests at the Fund. The Minister exercises influence on IMF issues by voting on resolutions presented to the IMF Board of Governors, through interventions at the spring and fall Annual meetings of the International Monetary and Finance Committee (IMFC), plenary statements at the IMF/World Bank Annual and Spring Meetings, and periodic meetings with the Managing Director of the Fund. The Minister also exercises influence through our Executive Director at the Fund's Executive Board, where the majority of decisions are taken. The Governor of the Bank of Canada is Canada’s Alternate Governor of the IMF.

Relationship to Department

The Department of Finance co-ordinates Canadian policy advice on IMF issues and Canada's operational interests at the IMF. Every year, the Department prepares an annual report on the operations of the IMF as part of the Report to Parliament on the Government of Canada's International Assistance. The Department also participates in the IMF’s annual Article IV consultation with Canada. Article IV consultations are part of the IMF's surveillance mandate and consist of annual assessments of a country’s economic policies and prospects.

The management of Canada's interests in the ongoing work of the IMF is the responsibility of the Executive Director, Ms. Louise Levonian, Canada's representative on the Executive Board. Ms. Levonian is one of 24 Executive Directors. In addition to Canada, she represents 11 other countries (Ireland and 10 Caribbean countries), with the twelve countries forming our constituency at the Executive Board. The Minister of Finance nominates Canada's Executive Director, with the approval of the Prime Minister (given that the position is usually staffed at the Deputy Minister level), and the nominee is then formally elected by the constituency for a two- year term. The 2020 election process is currently underway, with Ms. Levonian once again representing Canada.

Significance

The IMF is the central multilateral institution in the international financial system. Its role is to promote a sound global financial system and broad-based economic growth through surveillance, policy advice and the provision of conditional financial assistance to countries experiencing unsustainable external imbalances and related economic difficulties.

The IMF works like a credit union. Upon joining and subject to regular reviews, each member of the IMF is assigned a quota, based broadly on its relative weight and integration in the world economy. The IMF has a large pool of liquid assets which it makes available to help members finance temporary balance of payments problems. The IMF's resources are provided by its members primarily through their payment of quotas, as well as temporary borrowing arrangements. A country’s quota, in turn, helps determine the amount of Fund resources that it may use should it experience economic difficulties. Canada's quota is currently about SDR 11 billion ($20.5 billion).

Roughly half of the IMF's overall lending resources are in the form of borrowing arrangements with countries like Canada, and are currently in the process of being renewed. This is pursuant to the decision in Fall 2019 by the IMFC to conclude a multi-year review of IMF resources and governance by making no changes to IMF quotas, but to maintain the overall lending capacity of the IMF by renewing its borrowed resources at the current level (and making offsetting changes to the sizes of the main borrowed resource facilities). These borrowing arrangements provide for additional resources in times of heightened global economic uncertainty. Canada’s commitment to the expanded New Arrangements to Borrow (NAB) facility will increase from SDR 3.9 billion ($7.3 billion) to SDR 7.7 billion ($14.4 billion), and the size of our Bilateral Borrowing Agreement (BBA) will fall from SDR 8.2 billion ($15.2 billion) to SDR 3.5 billion ($6.5 billion). Taken together with our quota, Canada’s total financial commitments to the IMF’s main lending envelope will total SDR 22.2 billion ($41.4 billion) when our renewed lending arrangements take effect at the beginning of 2021. Any amount lent by the Government to the IMF constitutes a financial asset, and has no fiscal cost.

Canada also contributes to the IMF’s Poverty Reduction and Growth Trust (PRGT), which provides financial support on concessional terms to low-income countries facing protracted balance of payments problems. Canada is in the process of finalizing a new SDR 500 million (about $932 million) loan commitment, bringing our total commitment to SDR 1.5 billion (about $2.8 billion), to help ensure the IMF has sufficient resources to support its poorest members throughout the COVID-19 crisis and recovery.

Canada’s current objectives for the IMF are: 1) Work with the IMF to sustain global economic stability through the COVID-19 crisis and set the stage for a strong recovery; 2) Improve resiliency among the poorest and most vulnerable members; and 3) Promote the benefits of economic and financial integration, rules-based multilateralism and technological progress as a means to facilitate economic growth and prosperity that benefit everyone.

Kristalina Georgieva succeeded Christine Lagarde as Managing Director of the IMF on October 1, 2019.

World Bank Group

Relationship to Minister

The Minister of Finance is Canada’s Governor on the Board of Governors of the World Bank Group. The Deputy Minister of International Development at GAC is Canada’s Alternate Governor at the World Bank Group.

Most decisions are delegated to a resident Board of Executive Directors. However, as Governor, the Minister of Finance usually attends both the spring and annual (fall) meetings of the World Bank Group, which are jointly held with the IMF. Governors discuss key policy issues in the joint Development Committee of the World Bank Group and IMF, which convenes during the spring and annual meetings. The Minister and the Deputy Minister of International Development generally attend for discussion on development issues.

Relationship to Department

The Department of Finance coordinates Canadian policy advice on World Bank Group issues and Canada’s operational interests in the World Bank Group. The Department of Finance consults with GAC on all issues relating to the World Bank Group.

The management of Canada’s interests in the World Bank Group are the responsibility of the Executive Director, Canada’s representative on the Executive Board. The position is currently held on an interim basis by Ms. Louise Levonian, who is also Executive Director at the IMF. There are 25 Executive Directors, who meet regularly to consider policy issues and individual World Bank Group projects. In addition to Canada, the Canadian Executive Director represents 12 other countries (Ireland and 11 Commonwealth Caribbean countries), with Canada and these other countries forming one constituency at the Executive Board.

The Minister of Finance nominates Canada’s Executive Director with the approval of the Prime Minister (given that the position is usually staffed at the Deputy Minister level), and the nominee is then formally elected by the constituency.

Significance

The World Bank Group is owned by 189 of the world’s sovereign governments and is driven by poverty reduction and shared prosperity objectives. The World Bank Group provides loans, equity investments, grants, guarantees and technical assistance to developing country governments and private sector entities in pursuit of its objective of poverty reduction. The World Bank Group is the world’s largest official source of development financing. The World Bank Group is led by President David Malpass, who was appointed for a five-year term in beginning on April 9, 2019.

The World Bank Group consists of five entities. The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) together form the World Bank. The IBRD provides non-concessional financing and technical assistance to the governments of middle-income borrowing countries, while IDA provides concessional (interest- free) loans and grants to the governments of the world’s poorest countries. The International Finance Corporation (IFC) is the Bank Group’s private sector arm that provides financing to private companies on commercial terms. The Multilateral Investment Guarantee Agency (MIGA) promotes private foreign investment in developing countries through the provision of guarantees and other insurance against non-commercial risk. The fifth entity, the International Centre for Settlement of Investment Disputes (ICSID), provides conciliation and arbitration services for international investment disputes.

Canada makes annual contributions of about $442 million on an accrual basis to replenish IDA. Replenishment negotiations occur on a three-year cycle, with Canada’s most recent three-year IDA commitment amounting to US$1.3 billion on an accrual basis and $2.1 billion on a cash basis, the seventh largest contribution. This 19th replenishment, known as IDA19, reflected Canadian proposals to improve borrower’s debt sustainability and transparency and to use innovative financial solutions to generate more support for development with resources provided by donors. Canada’s strong focus on the poorest and most vulnerable countries and on promoting gender equality were also prominently reflected in the outcome of the negotiations.

Canada also makes periodic commitments to recapitalize the IBRD. As of June 30, 2020, Canada had subscribed to US$8.5 billion (approximately 3%) of IBRD’s capital, including US$1.5 billion to complete a capital increase negotiated in 2018. This 2018 capital increase was the first such increase since 2010. At that time, Canada was one of the shareholders that endorsed boosting the Bank’s capital by more than US$58 billion, in response to a G20 commitment to ensure that the multilateral development banks had sufficient resources to play a role in overcoming the financial crisis. Of Canada’s subscribed capital, US$620 million has been paid in cash, with the remainder being guaranteed in the event the IBRD is not able to pay its creditors.

European Bank for Reconstruction and Development (EBRD)

Relationship to Minister

The Minister of Finance is Canada’s Governor to the European Bank for Reconstruction and Development. Each of the Bank’s 71 shareholders are represented on the Board of Governors, the Bank’s highest decision-making body.

Governors meet annually, usually in May. The previous Minister of Finance has not generally attended such annual meetings in the past, and has designated a Minister of State or a senior Departmental official to represent Canada. At the annual meetings, Governors (or their designates) typically make a short oral intervention outlining their views on the operations and priorities of the Bank. The 2020 Annual Meeting is will be held virtually on October 7-8, 2020.

Relationship to Department

The Department of Finance co-ordinates Canadian policy advice on EBRD issues and Canada’s operational interests in the EBRD. The management of Canada’s interests in the ongoing work of the EBRD is the responsibility of Douglas Nevison, Canada’s representative on the Board of Directors. Mr. Nevison is one of 23 Directors.

In addition to Canada, he represents Morocco, Jordan, and Tunisia, with the four countries forming one constituency at the Board of Directors. Mr. Nevison’s term will end in September 2020. Sarah Fountain Smith has been appointed as Canada’s next Executive Director, effective September 28, 2020.

Significance

The EBRD’s mandate is to invest in financially viable projects that promote the transition to a market-oriented economy in the countries of Central and Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean region that respect the principles of multiparty democracy, pluralism, and market economics. Through its investments, the Bank contributes to continued economic reform in the region and improved integration with the world economy. The previous EBRD President, Sir Suma Chakrabarti, finished his 8-year term on July 2, 2020. Mr. Jürgen Rigterink, First Vice President, is currently acting as President until the election of a new President, which is scheduled to take place at the 2020 Annual Meeting on October 7.

The EBRD’s total authorized capital stands at €30 billion (about C$44 billion). Canada has subscribed to 3.45 per cent – or €1.02 billion (about C$1.5 billion) of the Bank’s capital – of which about 20 per cent is paid-in capital, with the remaining subscription consisting of callable shares.

The EBRD’s mandate and operations have evolved considerably in recent years. The Bank’s operations have expanded to South-Eastern Europe, Central Asia and Turkey, which presents greater operational challenges and financial risks compared to Central and Eastern Europe.

Supporting the development of Ukraine is a priority for Canada at the EBRD, given its great transition needs. Canada is a strong advocate for this region and has supported Ukraine by providing dedicated resources, and encouraging EBRD investments that facilitate political and economic transition in Ukraine. In view of Russia’s illegal annexation of Crimea and its actions in eastern Ukraine, Canada and other G7 countries opposed EBRD lending to new Russian projects since 2014. Given that Russia was the EBRD’s largest recipient country, this issue has been of high significance to the Bank.

The EBRD is in the process of developing its Strategic and Capital Framework, which will define the high-level strategic orientations for the Bank's operations over the period 2021-25, and assess the capital requirements needed to pursue the priorities.

Asian Infrastructure Investment Bank (AIIB)

Relationship to Minister

The Minister of Finance is Canada’s Governor to the Asian Infrastructure Investment Bank (AIIB). Each of the Bank’s 82 shareholders is represented on the Board of Governors, the Bank’s highest decision-making body.

Governors meet annually, usually in June. The Minister of Finance does not generally attend this meeting and has designated a senior Departmental official to represent Canada. At the annual meeting, Governors (or their designates) may make a short oral intervention outlining Canada’s views on the operations and priorities of the Bank.

Katharine Rechico was recently elected by the constituency to continue to serve as Canada’s Director. Her new term became effective July 1, 2020. The AIIB is led by President Jin Liqun, who was re-elected for a second five-year term at the AIIB’s virtual annual meeting held on July 28, 2020.

Relationship to Department

The Department of Finance co-ordinates Canadian policy advice on AIIB issues and Canada’s operational interests in the Bank. The management of Canada’s interests in the ongoing work of the AIIB is the responsibility of Canada’s Executive Director, one of 12 non-resident Directors.

In addition to Canada, the Executive Director represents Algeria, Egypt, Ethiopia, Ghana, Madagascar, the Republic of Guinea, Rwanda and Uruguay with the countries forming one constituency at the Board of Directors. The Minister of Finance nominates Canada’s Director (a position usually staffed at the Assistant Deputy Minister level), and the nominee is then formally approved by the constituency, based on constituency negotiations. Canada is currently serving a three-year term as Director, starting July 2018.

Significance

Established in January 2016 and based in Beijing, the Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank focused on infrastructure financing in Asia. China was the principal driver in creating the AIIB, which was seen in part as a response to their dissatisfaction, and that of India and other emerging economies, with the slow pace of reform to the voting powers of existing institutions within the Bretton Woods international financial architecture.

Canada joined the AIIB in March 2018. Other members of the AIIB include Australia, China, France, Germany, India, Italy, South Korea and the UK. The US and Japan have not joined the AIIB. There has been considerable political discourse within Canada over the merits of membership; the official opposition of the 42nd Canadian Parliament focused on the AIIB in the context of Canada’s broader strategy on China and publicly called for Canada's withdrawal from the institution.

World Trade Organization (WTO)

Relationship to Minister

Primary responsibility for Canada’s participation in the World Trade Organisation (WTO), including attendance at Ministerial meetings, rests with the Minister of International Trade Diversification. However, the Minister of Finance holds statutory responsibility for Canada’s import policy (including the Customs Tariff and the Special Import Measures Act) and financial services, and shares responsibility with the Ministers of International Trade Diversification and Innovation, Science and Economic Development for investment policy. * Sentence redacted *

Relationship to Department

The Department plays a lead role in the negotiation and implementation of tariff and trade rules, including commitments at the WTO (e.g. generalized system of preferences towards developing and least developed countries) and the current negotiations on fisheries subsidies and electronic commerce, in close consultation with other interested departments and agencies. Also, in the context of its economic advisory responsibilities, the Department plays an active role in the co- ordination and management of Canada’s broader participation in WTO activities, including the resolution of trade disputes (e.g., softwood lumber). Finally, the department is actively engaged in efforts to reform the WTO, including in the context of the Ottawa Group, in areas related to import policies and subsidies

Significance

The World Trade Organisation (WTO) was established as part of the results of the Uruguay Round (1994) of multilateral trade negotiations to succeed the GATT. It is the main global international organisation governing trade between nations. At its heart are a number of agreements that set out the ground rules for national policies bearing on trade in goods and services. Such agreements cover, inter alia, tariff commitments, agricultural trade, and the use of

trade remedies such as anti-dumping and countervailing measures, trade in services and intellectual property rights. The WTO currently has 164 members and its decisions, including the launch and conclusion of negotiations, are made by consensus. Rights and obligations established in the various WTO agreements are enforced through a binding dispute settlement process, which aims to ensure that Members keep their trade policies within the agreed limits.

* Paragraphs redacted *.

Organisation for Economic Cooperation and Development (OECD)

Relationship to Minister

The OECD holds an annual Ministerial Council Meeting (MCM) for Finance and Trade Ministers in the spring of each year. The increased focus of the G20 and other international groups on macroeconomic and financial stability issues and the busy international meeting schedule has led to the Minister of State (when applicable) or the Parliamentary Secretary representing the Finance Minister at the MCM in recent years. Due to COVID-19, the 2020 MCM has been delayed and is tentatively scheduled for late October. Minister Fortier is expected to co-lead Canada’s delegation, along with Minister Ng. Germany had been contemplating hosting a one-off Finance Ministers meeting October on the OECD’s tax and digitalisation work; however, a lack of progress on this project makes it unlikely this meeting will occur.

Relationship to Department

Global Affairs Canada is the lead department for Canada’s participation at the OECD. Reflecting its responsibilities, the Department of Finance leads in certain committees, related to economic, financial and fiscal affairs. They include:

Finance also leads on budgeting and expenditure issues through the Working Party of Senior Budget Officials.

The Department of Finance also leads Canada’s participation in the OECD Working Party on Export Credits and Credit Guarantees, and the Participants to the Arrangement on Officially Supported Export Credits. These forums are responsible for a set of agreements that establish rules according to which OECD-country based export credit agencies (such as Export Development Canada) provide government-backed export financing, as well as guidelines on topics such as environmental and social due diligence standards.

The EDRC Survey of Canada, which occurs every 18-24 months, is coordinated by Finance. The policy mission for the next survey is currently scheduled for October 2020.

The Department of Finance is represented at the Canadian Delegation to the OECD by a Finance Canada appointed Counsellor. Finance officials take the lead in other committee meetings.

Significance

The OECD committees in which Finance leads or monitors are doing useful work in a number of areas, particularly with respect to the interlinkages of macroeconomic and structural policy analysis. The OECD has a comparative advantage over other institutions in structural policy analysis. It is the leading body responsible for developing global norms in the international tax area, with significant influence on the content and interpretation of bilateral tax treaties and guidance on transfer pricing. The OECD-led Inclusive Framework on Base Erosion and Profit Shifting (BEPS), a body connected with the Committee on Fiscal Affairs, has a broad membership of over 135 jurisdictions, which are cooperating to implement standards designed to address aggressive tax avoidance by multinational enterprises, and discussing changes to global norms in response to the tax challenges of digitalization. In addition, the Global Forum on Transparency and Exchange of Information for Tax Purposes, whose membership similarly extends well beyond OECD members to include more than 160 jurisdictions, is tasked with monitoring the implementation of the OECD standards on exchange of information, in support of the fight against international tax evasion.

With respect to the macroeconomic analytical work conducted by the OECD, the Department sees some scope for a re-orientation of activities away from short-term analysis that is often replicated by other international institutions towards longer-term structural issues in which the OECD has a comparative advantage. Over the past several years, OECD members have been working to ensure the OECD remains focused on emerging priorities.

Secretary-General (SG) Angel Gurria has led the organisation since 2006. The selection process for a new SG will soon begin, with the next leader assuming the post on June 1, 2021. Bill Morneau is in the running for this position and will be supported by Global Affairs Canada in his campaign.

Finance Ministers of the Americas and the Caribbean

The forum was founded by Mexico in 2008 to promote cooperation among Finance Ministers and to foster a dialogue with heads of International Financial Institutions (IFIs). The group includes 34 member countries, plus the International Monetary Fund (IMF), the World Bank Group, the Inter-American Development Bank (IDB), and other regional bodies on an ad hoc basis. The host country Minister typically holds a closing press conference instead of issuing a negotiated Communiqué.

Relationship to Minister

The Minister of Finance typically attends these meetings, which featured discussions of medium- term economic challenges and policies, regional integration (including a separate session on trade and infrastructure), innovation and private sector development.

Relationship to Department

Finance Canada coordinates on relevant issues with the Department of Foreign Affairs, Trade, and Development in order to ensure policy coherence, including in support of the government’s strategy for enhanced engagement with the Americas.

Significance

The forum represents an opportunity for G20 members to engage in outreach to the region, and it also permits Canada’s Finance Minister to engage with Commonwealth Caribbean members of the Canadian-led constituencies at the IMF and World Bank Group. More generally, the forum allows Finance Ministers to hear different points of view in the region and to confront common economic challenges.

The forum is the only meeting of Western Hemisphere ministers that is not formally linked to the Organization of American States (OAS). In 2001 Canada hosted the OAS-linked precursor forum, Western Hemisphere Finance Ministers (WHFM), but that forum is now dormant.

Asia-Pacific Economic Cooperation (APEC)

Relationship to Minister

The APEC Finance Ministers Meeting is typically held in the fall. For 2020, Malaysia will be hosting the meeting virtually on September 25. The focus will be on economic recovery from the pandemic. While in recent years the Parliamentary Secretary (Finance) has generally attended on the Minister’s behalf, given the virtual format and topic for this year, participation at a higher level might be warranted, depending on other members’ attendance.

Relationship to Department

Canada’s APEC Finance Deputy is the Associate ADM of the International Trade and Finance Branch, Patrick Halley, who accompanies the Minister or Parliamentary Secretary to the Ministerial meeting. In addition, there are Finance Deputies’ and officials’ meetings during the year to help develop the Ministerial agenda.

Significance

APEC was initially established as a trade ministers’ forum in 1989, with an early ambition of making the region the world’s largest free-trade zone. Discussions have since spread to cooperation on a wide range of economic and social issues. There are 21 APEC member economies, representing approximately 60% of the world economy.

The APEC process is consultative, based on consensus and has a rotating chair. Malaysia is chairing in 2020 and hosting all meetings online due to the pandemic. New Zealand will chair in 2021 and has announced that it will also do so virtually.

APEC Finance Ministers started meeting annually in 1994. Although these meetings are separate from the APEC Leaders’ Meetings, key outcomes can occasionally form a part of the Leaders’ agenda. Topics typically include financial sector integration, fiscal reforms, international tax avoidance, and infrastructure financing. Discussions often centre around spreading certain G20 themes and outcomes to this wider group, capacity building and piloting some regional projects. Canada’s main objective at APEC meetings is to maintain engagement in this dynamic region.

Commonwealth Finance Ministers’ Meeting (CFMM)

Relationship to Minister

Ministers of Finance of all Commonwealth countries are annually invited to participate in the Commonwealth Finance Ministers’ Meeting (CFMM) to discuss global issues of mutual concern. The Commonwealth’s membership includes 54 countries, including five G20 countries
(United Kingdom, Australia, India, South Africa, and Canada), as well as numerous small islands and African states.

Since 2010, the CFMM has been held on the margins of IMF and World Bank’s Annual Meetings, in the hopes of making it a more effective forum and securing a higher participation level amongst Finance Ministers. The Canadian Minister of Finance chaired the 2010 meeting and the 2017 CFMM.

Relationship to Department

The Department of Finance prepares the background briefs and interventions for Canada’s participation at the CFMM.

Significance

As the Commonwealth has no specific role in IMF, World Bank Group, or the G20, discussions are purely consultative. For example, the Secretary General has been consulted by previous G20 Presidencies including Canada. The CFMM continues to make efforts to increase its relevance, including by focusing on issues of importance specific to its members.

The Commonwealth Secretariat is planning to convene a CFMM in October 2020. The proposed theme is the impact of COVID-19 on the economy; the Secretariat is also exploring the idea of developing a Ministerial statement related to COVID-19, but the content has not yet been determined.

La Francophonie Finance Ministers Meeting

Relationship to Minister

Since 2012, the International Organisation of La Francophonie has convened La Francophonie Finance Ministers Meeting (LFFMM) to discuss development-financing issues. The La Francophonie membership includes 61 countries and 27 observers.

The LFFMM is typically held on the margins of the IMF and World Bank’s Annual Meetings.

Relationship to Department

The Department of Finance prepares the background briefs and interventions for Canada’s participation at the LFFMM.

Significance

As La Francophonie has no specific role in IMF, World Bank Group, or the G20, discussions are purely consultative. It is not yet known if a Finance Ministers’ meeting will be planned for 2020.

Paris Club

Canada is a founding member of the Paris Club, an informal group of 22 official creditors whose role is to find coordinated and sustainable solutions to the international debt payment difficulties experienced by debtor countries. The French Ministry for the Economy and Finance acts as Secretariat and hosts regular meetings and negotiations.

Relationship to Minister

The Minister of Finance is responsible for approving debt relief or forgiveness provided to countries through the Paris Club and for ensuring that other Canadian government agencies, such as Global Affairs Canada and Export Development Canada, restructure their bilateral claims against these countries in line with Paris Club agreements.

Relationship to Department

Today, Canada’s financial exposure at the Paris Club totals over $3 billion in loans to 34 developing countries. This debt is owed to Finance Canada (macro financial assistance loans); Global Affairs Canada (official development assistance and export development loans); and Export Development Canada (export finance loans).

The Department of Finance leads the Canadian delegation to the Paris Club with support from Export Development Canada and Global Affairs Canada. At regular “Tour d’Horizon meetings”, officials monitor economic developments, exchange information on payment issues, and may negotiate debt relief with debtor countries. Representatives of international institutions, notably the IMF and the World Bank, also attend meetings as observers.

Significance

The Paris Club helps maintain the stability of the international financial system and helps sovereign creditors maximize returns on sovereign claims. Since 1956, the Paris Club has reached 433 agreements with 90 different debtor countries. The total debt treated in the framework of Paris Club agreements amounts to US$583 billion. Without the Club, debt restructuring could be messy, protracted, and costly for both debtors and creditors. Finally, the Club has also played a key role in enabling countries’ re-integration into the global economy, providing debt relief at a moment when a country is opening up after years of detachment (e.g., Poland in 1991; Myanmar in 2013; Cuba in 2016).

The Paris Club played an integral role in the development and implementation of the G20 Debt Service Suspension Initiative (DSSI). * Sentences redacted *

Financial Action Task Force (FATF)

Relationship to Minister

The Minister is responsible for approving the overall FATF mandate, which was made open- ended in 2019. Ministerial meetings will take place every two years starting in 2022 to discuss strategic issues and progress against the mandate, usually on the margins of IMF and World Bank annual meetings. In addition, Canada will co-chair the Asia/Pacific Group (APG), an affiliate organization of the FATF, alongside Australia from 2022 to 2024 and act as incoming co-chair in 2021. The Minister will open the week-long annual meeting of the APG that will take place in western Canada in 2023.

Relationship to Department

As policy lead and coordinator for Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime, the Department of Finance leads Canada’s delegation to the FATF. Meetings of the FATF Plenary, its decision making body, are held three times per year in February, June and October.

Significance

Established in 1989 under G7 leadership, the FATF is an intergovernmental body that sets global standards for combatting money laundering, terrorist financing and proliferation financing.
Canada is a founding member of the FATF, which has 39 members and a global network of more than 190 countries committed to the implementation of FATF standards. The FATF uses a comprehensive peer review process to assess member’s compliance with these standards.

Canada was evaluated in 2016. The FATF identifies and engages with countries that pose money laundering and terrorist financing risks to the financial system and issues public lists of high-risk and uncooperative jurisdictions. It also assesses trends, risks and emerging issues in money laundering, terrorist financing and proliferation financing, and conducts outreach to private sector and non-governmental organizations.

Coalition of Finance Ministers for Climate Action

Relationship to Minister

Canada joined the Coalition of Finance Ministers for Climate Action on June 14, 2019. The Coalition serves as a forum for Finance Ministers to promote a common set of climate action that Ministers can pursue within their mandates, and to share experiences on climate change-related fiscal policies and practices. The Coalition aims to meet at least once a year during the World Bank Group and International Monetary Fund (WBG-IMF) Spring or Annual Meetings.

Relationship to Department

The Department of Finance helps prepare the Minister for Coalition meetings, as well as being directly engaged with Coalition’s Secretariat or other countries in technical work. A designated Sherpa, a senior official within the department, is also responsible for attending Sherpa meetings which take place throughout the year.

Significance

The Coalition was launched at the WBG-IMF Spring Meetings in April 2019 with the aim to drive stronger collective action on climate change and its impacts. The members of the Coalition endorsed a set of six common principles, known as the “Helsinki Principles” that promote national climate action, especially through fiscal policy and the use of public finance.

The Coalition and its Principles align with the Government of Canada’s action on climate change, particularly the Pan-Canadian Framework on Clean Growth and Climate Change and the Government’s 2015 announcement to contribute $2.65 billion by 2020-21 in climate financing to help developing countries mitigate and adapt to the impacts of climate change.

To date, the Coalition comprises 52 members, including some G7 participants (United Kingdom, France, Germany and Italy) and G20 participants (Argentina, Indonesia and Mexico). The Co- Chairs are Finland and Chile.

International Platform on Sustainable Finance (IPSF) Relationship to Minister

The IPSF was launched in October 2019 to serve as a multilateral forum to promote information sharing and dialogue on sustainable finance matters. The IPSF has thirteen member countries that together represent approximately 50 per cent of global GHG emissions. The IPSF aims to meet at least annually at the World Bank Group and International Monetary Fund (WBG-IMF) Spring or Annual Meetings.

Relationship to Department

The Department of Finance has a designated IPSF Sherpa who represents Canada at IPSF meetings, sharing Canada’s approach to sustainable finance and broadly engaging in a manner that supports the IPSF’s mandate and work plan. The IPSF secretariat is housed within the European Commission. The Department is responsible for briefing the Minister of Finance for high-level Sherpa ministers’ meetings.

Significance

The IPSF is the only international forum that is exclusively focused on advancing sustainable finance issues on a global basis. Its focus is to promote information and dialogue among members so that sustainable finance standards and practices are developed more consistently, in a manner that reflects the global nature of financial markets. The IPSF may ultimately evolve into a body that sets standards for sustainable finance.

Canada-China Economic and Financial Strategic Dialogue

Relationship to Minister

The Minister of Finance co-chairs the Canada-China Economic and Financial Strategic Dialogue (hereafter the EFSD), along with Canada’s Minister of International Trade Diversification and China’s State Councillor Wang Yong.

Relationship to Department

The Department of Finance and Global Affairs Canada jointly lead Canada’s participation in the EFSD, coordinating input from other government departments and leading joint outcome negotiations with China’s State Council.

Significance

Launched in 2017, the EFSD is the principal mechanism for Canada’s economic engagement with China. China has become Canada’s second largest trading partner, a major player in international institutions, and an increasingly assertive power projecting influence abroad. The EFSD engages China at the State Councillor level, who out ranks China’s Minister of Finance, enabling high-level strategic conversations on crosscutting issues across a range of portfolios with a key decision-maker.

The first substantive EFSD was held in Beijing in November 2018. It delivered 50 joint outcomes in the fields of macroeconomic coordination, financial services and bilateral trade and investment. Since then, the EFSD has fallen dormant. The timing of the next EFSD will depend on the broader bilateral relationship,

Minister’s responsibilities for appointments

The Consultations and Communications Branch provides full administrative support to the Minister’s Office for managing appointments within the Finance portfolio.

The current and upcoming vacancies on the boards will provide an opportunity to improve the diversity of appointees (e.g. gender) within the Finance portfolio.

Note: Where not specifically required by statute, Governor in Council appointments within the Finance portfolio are made on the recommendation of the Minister of Finance as a matter of practice.

You will find below background information on appointments for each organization that falls under your purview. Please note that the following organizations require decisions in the near future:

Key Appointments Required within the First 2 Weeks of Parliament’s Return (and resumption of regular Cabinet meetings)

Key Appointments Required within the First 30 days of Parliament’s Return (and resumption of regular Cabinet meetings)

Organizations within the Finance portfolio

Asian Infrastructure Investment Bank (AIIB)

Bank of Canada

Status: The Senior Deputy Governor’s term expires May 1, 2021, and four directors’ terms expire on February 28, 2021.

Composition of the Board of Directors Term Expiration
Governor Tiff Macklem June 2, 2027
Senior Deputy Governor Carolyn Wilkins May 1, 2021
Directors
Paul Haggis – Alberta February 28, 2021
Raymond Ivany – Nova Scotia February 28, 2021
Mariette Mulaire – Manitoba February 28, 2021
Claire Kennedy – Ontario February 28, 2021
Peter Dhillon – British Columbia February 28, 2022
Monique Jérôme-Forget – Quebec February 28, 2022
Stephanie Bowman – Ontario February 28, 2023
Robert Malcolm Campbell – New Brunswick February 28, 2023
Greg Stewart – Saskatchewan February 28, 2023
Debora Bielecki – Ontario February 28, 2023
Monique Mercier – British Columbia February 28, 2023
Anne Whelan – Newfoundland & Labrador February 28, 2021

Canada Deposit Insurance Corporation (CDIC)

Status: CDIC is governed by an 11-person Board of Directors. The Board includes a Chairperson, five private sector directors and five public sector directors. In 2018, four private sector directors were replaced with new appointees, for four-year terms (except one for a two-year term). The fifth director was appointed in 2019 for a four-year term. The current Chair, who was reappointed for a one-year term in December 2019, will be up for reappointment when his current term expires in December 2020. * Sentence redacted *

Composition of the Board of Directors Term Expiration
President & CEO Peter Routledge November 11, 2023
Chairperson Robert Sanderson December 13, 2020
* Information redacted *
Directors
Wendy Millar – Ontario June 20, 2022
David M. Dominy – Alberta June 20, 2022
Andrew Kreigler – Ontario September 6, 2022
J. Martin Castonguay – Quebec May 20, 2023
Lindy Caty – Quebec June 20, 2024

Canada Development Investment Corporation (CDEV)

Status: The position of President has been a long-standing vacancy with the duties continuing to be carried out by an Executive Vice-President (retiring September 30, 2020). With a view to appointing a President, a selection process will be launched in the near future. Two Directors whose terms expired in June 2019 continue in office until appointments are made
Composition of the Board of Directors Term Expiration
Chairperson Stephen Swaffield – British Columbia March 24, 2023
Directors
Jennifer Reynolds – Ontario June 30, 2019
Sandra Rosch – Ontario June 30, 2019
Darlene Halwas – Alberta December 13, 2020
Carole Malo – Ontario August 09, 2023
Robert Wener – Ontario August 09, 2023

Vacant Position

 

Canada Pension Plan Investment Board (CPPIB)

Status:

Composition of the Board of Directors Term Expiration
Chairperson & Director Heather Munroe-Blum – Quebec October 26, 2020
Directors
Mary Catherine Phibbs – London, England May 3, 2020
Tahira Hassan – Ontario February 4, 2021
Karen Sheriff – Ontario March 25, 2021
Jo Mark Zurel – Newfoundland & Labrador March 25, 2021
Charles Magro – Alberta June 30, 2021
Sylvia Chrominska – Ontario September 3, 2021
Mark Evans – London, England May 8, 2022
Kathleen Taylor – Ontario October 25, 2022
John Montalbano – British Columbia February 11, 2023
Ashleigh Everett – Manitoba February 11, 2023
Boon Sim – New York, New York, USA July 14, 2023

Canadian International Trade Tribunal

Status: The Chairperson, Vice-chairperson and permanent members are appointed for up to two five-year terms. The Vice-chairperson stepped down, effective June 30, 2020. The second term of the Chair of the Tribunal expires on January 1, 2021.

Composition of the Board of Directors Term Expiration
Chairperson Jean Bédard January 1, 2021

Vice-Chairperson: Vacant

 
Permanent Members
Peter Burn – Ontario January 29, 2023
Cheryl Beckett – Ontario September 30, 2023
Georges Bujold – Quebec September 30, 2023
Susan Beaubien - Ontario March 3, 2024
Randolph Heggart – Ontario June 18, 2024
Temporary Member
Serge Fréchette – Quebec April 7, 2021

Canadian Securities Regulation Regime Transition Office

Status: The appointment of the current President of the Canadian Securities Regulations Regime Transition Office, Douglas Hyndman, expires on September 30, 2020. * Information redacted * the Department benefits from Mr. Hyndman's expertise and leadership. In this regard, the intention is to extend Mr. Hyndman's appointment by one year.

Capital Markets Authority Implementation Organization "CMAIO"

Status: The Council of Ministers appointed the initial board of directors of the CMRA in July 2016. * Sentences redacted *

European Bank for Reconstruction and Development (EBRD)

Composition of the Board of Governor Appointment Date
Governor – Minister of Finance August 18, 2020
Alternate Governor Vacant  

Financial Consumer Agency of Canada (FCAC)

Status: The appointment of the current Commissioner of the FCAC, Judith Robertson, expires on August 18, 2024.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

Status: The appointment of the current Director of FINTRAC, Nada Semaan, expires on March 4, 2023.

The World Bank Group (International Bank for Reconstruction and Development; International Finance Corporation; the International Development Association; Multilateral Investment Guarantee Agency; the International Center for Settlement of Investment Disputes)

Overview Appointment Date
Governor – Minister of Finance August, 18, 2020
Alternate Governor Diane Jacovella August 15, 2017

International Monetary Fund (IMF)

Overview Appointment Date
Governor Minister of Finance August, 18, 2020
Alternate Governor Stephen Poloz December 17, 2013

Office of the Auditor General of Canada

Overview Appointment Date
Auditor General – Karen Hogan June 8, 2020

Office of the Superintendent of Financial Institutions (OSFI)

Status: The appointment of the current Superintendent, Jeremy Rudin, expires on June 8, 2021.

Payments Canada

Royal Canadian Mint

Composition of the Board of Directors Expiration Date
Master of the Mint Marie Lemay – Ontario February 17, 2024
Chairperson Phyllis Clark – Alberta May 10, 2023
Directors  
Victor Young – Newfoundland & Labrador October 17, 2020
Cybele Negris – British Columbia October 17, 2021
Serge Falardeau - Quebec October 17, 2021
Deborah Shannon Trudeau - Quebec October 17, 2021
Gilles Patry – Ontario June 10, 2022
Fiona L. Macdonald – British Columbia June 10, 2022
Sandip K. Lalli – Alberta June 5, 2022
Pina Melchionna – Ontario June 1, 2023
Barry Rivelis – British Columbia June 30, 2023

Federal-Provincial Relations

The Minister and the Department of Finance have a long-established process for consultations with provinces and territories.

The consultative process largely consists of meetings/teleconferences at various levels: among Ministers once or twice a year; among Deputies as required; and among Assistant Deputy Ministers two or three times a year each on tax matters, on economic and fiscal matters, and as required on federal-provincial transfers and on the Canada Pension Plan. These meetings/teleconferences are supported by working groups, some of which meet regularly or as needed.

Except for the Canada Pension Plan Committee (see below), these meetings are consultative. They serve as a venue for an exchange of views as well as playing a role in co-ordinating policy between the federal and provincial/territorial governments. The discussions are not binding and the committees have no decision-making power.

A. Key Federal –Provincial –Territorial Finance Committees

Finance Ministers' Meetings

Finance Ministers' Meetings

Federal-provincial-territorial Finance Ministers' Meetings have taken place regularly since 1959 to discuss economic and fiscal issues, recognizing that the spending and taxing policies of both the federal and provincial-territorial governments often have direct or indirect impacts on each other.

Meetings are chaired by the federal Minister of Finance and are held at the call of the Chair, usually twice per year. One is generally held pre-budget, typically in December, and the other post-budget in or around the month of June. The December meeting is customarily face-to-face, while the other meeting has at times been held via teleconference depending on the nature of the issues being covered.

A typical agenda for a face-to-face meeting might include discussions on:

Federal and provincial governments are jointly responsible for conducting a formal review of the Canada Pension Plan every three years. Any decisions to change the Canada Pension Plan must have the formal support of at least two thirds of the provinces representing at least two-thirds of Canada's population.

Locations of meetings vary around the country, with Ottawa traditionally being the locale for about half of them.

Continuing Committee of Officials

The Continuing Committee of Officials (CCO), established in 1955, is made up of the federal, provincial, and territorial Deputy Ministers of Finance.

Chaired by the federal Deputy Minister of Finance, the Committee consults on finance-related issues with federal-provincial-territorial implications. Meetings at the Deputy Minister of Finance level are held at the call of the Chair.

The Committee may launch sub-committees, technical committees and/or working groups on federal-provincial fiscal, taxation or transfer issues as appropriate. The sub-committees generally meet more frequently, for example, twice per year in the case of the sub-committee on Fiscal and Economic Issues.

In the recent past, the federal Deputy Minister of Finance has preferred to hold Finance Deputy Ministers' Retreats rather than calling a meeting of the Continuing Committee of Officials. The mandate and membership of the DM Retreats and Deputy Minister CCO are identical.

Finance Deputy Ministers' Retreats

Federal, Provincial and Territorial Finance Deputy Ministers' Retreats are chaired by the federal Deputy Minister of Finance to consult on federal-provincial fiscal, taxation or transfer issues with federal-provincial implications. Annual retreats at the Deputy Minister of Finance level are held at the call of the Chair.

B. Other Finance Committees

Fiscal Arrangements Committee

The Fiscal Arrangements Committee (FAC) is comprised of Assistant Deputy Ministers responsible for federal-provincial fiscal relations. The meetings are chaired by the federal Assistant Deputy Minister, Federal-Provincial Relations and Social Policy, and meet and/or hold teleconferences as required.

The Committee consults on fiscal transfer issues, including the Equalization program, the Canada Health Transfer and the Canada Social Transfer, and on federal-provincial issues generally. A sub-committee on transfers meets regularly, generally once or twice per year.

Senior Financial Arrangements Committee

The Senior Financial Arrangements Committee (SFAC) is comprised of territorial Deputy Ministers of Finance and the federal Assistant Deputy Minister, Federal-Provincial Relations and Social Policy. The committee is chaired by the federal Assistant Deputy Minister, and meets as required.

The Committee consults on fiscal transfer issues relevant to the territories, in particular, Territorial Formula Financing. A sub-committee meets regularly at the working level, generally once or twice per year.

Canada Pension Plan Committee

Comprised of officials responsible for the Canada Pension Plan policy, the Committee is chaired by the federal Associate Assistant Deputy Minister of the Federal-Provincial Relations and Social Policy Branch, at the discretion of the Assistant Deputy Minister.

The purpose of the Committee is to provide a forum for federal-provincial-territorial officials to discuss possible changes to the Plan and the Triennial Review process. Federal and provincial ministers of finance are the co-stewards of the Plan.

The Committee meets as often as required, from two times a year during down periods to as often as bi-weekly during active periods. Officials from other federal departments and agencies, such as Employment and Social Development Canada and the Office of the Chief Actuary, also participate in the meetings.

Economic and Fiscal Data Sub-Committee

Comprised of Assistant Deputy Ministers responsible for fiscal and economic policy, the Committee is chaired by the federal Assistant Deputy Minister, Economic and Fiscal Policy Branch. Its purpose is to exchange information primarily of a technical nature (e.g., economic/ fiscal forecasts; assessment of risks; accounting methods).

The Committee meets twice a year, with a face-to-face meeting in June and a teleconference in December.

From time-to-time, the Committee will establish working groups to undertake joint federal- provincial-territorial work on issues of common interest.

Federal-Provincial Committee on Taxation (Tax Committee)

Federal-provincial/territorial collaboration and coordination in matters of tax policy is assisted through the operation of the Tax Committee. This committee is comprised of the federal, provincial and territorial Assistant Deputy Ministers responsible for tax policy. The Tax Committee is chaired by the federal Senior Assistant Deputy Minister, Tax Policy Branch, and usually meets two times annually.

The Tax Committee provides a forum for senior federal, provincial and territorial finance officials to discuss common current and emerging tax policy issues and examine their consequences for the national and provincial/territorial economies. These discussions can be very useful in providing an exchange of information, with the potential of guiding policy development in a common direction for the benefit of both national and regional economies.

From time to time, the Tax Committee will establish sub-committees to undertake joint federal- provincial-territorial work on issues of common interest.

Federal-Provincial Tax Policy Review Committee / Tax Harmonization Committee

The Federal-Provincial Tax Policy Review Committee (TPRC) was established under the Comprehensive Integrated Tax Coordination Agreements (CITCAs) with provinces that are part of the Harmonized Sales Tax (HST): Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and Prince Edward Island. The federal Minister of Finance and the Ministers of Finance of the participating provinces, each appoint a member to the committee. The TPRC's role is to monitor the ongoing operation of, and resolve issues in relation to, the HST system. The Committee is chaired by the federal member and meetings are held on an as required basis. The federal and provincial members each communicate, as appropriate, the results of the deliberations of the TPRC to the relevant federal and provincial Deputy Ministers.

Also created under the CITCA with the HST provinces, the Revenue Allocation SubCommittee- (RASC), which reports to the TPRC, is responsible for overseeing the HST revenue allocation mechanism and ensuring that it functions in the interests of the federal government and the participating provinces.

In the case of Quebec, the oversight role contemplated in the Canada-Quebec CITCA is carried out by the bilateral Tax Harmonization Committee (THC). The THC's role is to consider issues related to the GST/HST and QST, including the harmonized tax base and associated administrative, structural and definitional parameters. There is no RASC equivalent under the Canada-Quebec CITCA since GST and QST revenues are not apportioned by a revenue allocation mechanism.

Cannabis Taxation Policy Committee

Under the Coordinated Cannabis Taxation Agreements (CCTAs), a Cannabis Taxation Policy Committee (CTPC), consisting of representatives from Canada and each coordinated province and territory, is tasked with overseeing the coordinated cannabis duty system. The Committee reviews issues related to the legislation governing the coordinated cannabis duty, including the common duty base, duty rates and common duty structure. It is charged with monitoring the

cannabis market to ensure that tax rates, mark-ups and margins are in keeping with the principles of the CCTAs and with identifying potential adjustments that could support the objectives of cannabis legalization over time.

Federal-Provincial-Territorial Financial Sector Policy Dialogue

Comprised of Assistant Deputy Heads with financial sector oversight responsibilities and Deputy Heads from all federal financial sector regulators Office of the Superintendent of Financial Institutions, Financial Consumer Agency of Canada, the Bank of Canada, Canada Deposit Insurance Corporation and Canada Mortgage and Housing Corporation, the Committee is chaired by the federal Assistant Deputy Minister, Financial Sector Policy Branch. The Committee meets once a year and discuss financial sector related initiatives.

A typical agenda might include discussions on:

From time-to-time, the Committee will establish working groups to undertake financial sector related work.

British Columbia-Canada Working Group on Real Estate

Comprised of officials from federal and provincial organizations with a nexus to the real estate sector, the Committee is co-chaired by the Director General of the Financial Crime and Security Division in the Financial Sector Policy Branch and the Executive Lead of the Finance Real Estate Data Analytics group of the British Columbia Ministry of Finance.

The purpose of the Committee is to enhance communication, information sharing and alignment amongst relevant operational and policy partners to explore and better address issues and risks related to fraud, money laundering and tax evasion through real estate in British Columbia.

The Committee meets and holds calls when needed and has formed three sub-working groups to look at data collection and sharing; regulatory gaps, compliance, standards and education; and improving enforcement and prosecution.

Expert Panel on the Future of Housing Supply and Affordability

The federal and British Columbia governments announced the launch of the Expert Panel on the Future of Housing Supply and Affordability in September 2019. The Expert Panel, a joint federal-provincial panel, is preparing to provide recommendations to the Ministers of Finance of British Columbia and Canada by the end of 2020. The six-person panel is chaired by Joy MacPhail, who is currently the Chair of the Insurance Corporation of British Columbia. The members are leaders and specialists in a range of relevant fields.

The mandate of the Expert Panel is to identify and evaluate potential federal and provincial measures to make housing in British Columbia's high-priced markets more affordable and to increase housing supply. .

Between January and June of 2020, the Expert Panel conducted a series of stakeholder consultations to inform its recommendations, the results of which the Expert Panel anticipates publishing in September 2020. The panelists' consultations and analysis is being supported by the Government through a secretariat established by Canada Mortgage and Housing Corporation, led by Evan Siddall as Executive Secretary.

Heads of Agencies

The Heads of Agencies committee is comprised of the Deputy Heads of organizations with financial sector oversight responsibilities from the federal government (Department of Finance, Bank of Canada, and the Office of the Superintendent of Financial Institutions) and the major provincial securities regulators (British Columbia, Alberta, Ontario, and Quebec). The Heads of Agencies committee is chaired by the Governor of the Bank of Canada, and meets twice a year to share information and discuss financial sector related issues of common interest.

A typical Heads of Agencies agenda might include discussions on:

Council of Ministers of Participating Jurisdictions (Cooperative Capital Markets Regulatory System)

The governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Yukon, and Canada are working together to establish the Cooperative Capital Markets Regulatory System, with the aim of enhancing regulatory efficiency, strengthening enforcement and investor protection, and increasing capacity to manage systemic risk in Canada's capital markets. The Cooperative System would consist of a single regulatory authority administering uniform securities legislation in participating provinces and territories as well as federal systemic risk and criminal enforcement legislation on a national basis.

The Council of Ministers of Participating Jurisdictions is overseeing the establishment of the Cooperative System. The Council is comprised of the federal Minister of Finance and the Ministers responsible for capital markets regulation in each provincial and territorial participating jurisdiction. It is co-chaired by the federal Minister of Finance and the Ministers of Finance of British Columbia and Ontario (who rotate every two years).

C. Other Types of Federal –Provincial-Territorial Consultations

Throughout the year, multi- and bilateral meetings with the federal finance minister or deputy minister could be held.

In the case of bilateral ministerial meetings, provincial/territorial ministers often request meetings with the federal finance minister or deputy minister to discuss concerns specific to their province/territory.

Finally, provinces and territories may appear before parliamentary committees studying bills to provide comments.

Legislation And Statutory Responsibilites

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 their 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).

A. Statutes for Which the Minister of Finance is the Responsible Minister

The Minister of Finance is responsible for the following statutes because they are 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 ActsFootnote 3 (under various titles)
Canada Deposit Insurance Corporation Act
Canada Pension PlanFootnote 4
Canada Pension Plan Investment Board Act
Canadian International Trade Tribunal Act
Canadian Gender Budgeting ActFootnote 5
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 ActFootnote 6
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 ActFootnote 7
Protection of Residential Mortgage or Hypothecary Insurance Act
Royal Canadian Mint ActFootnote 8
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 their 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

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 ActFootnote 9
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)Footnote 10
Halifax Relief Commission Pension Continuation Act
Newfoundland and Labrador Additional Financial Assistance Act
Nordion and Theratronics Divestiture Authorization ActFootnote 11
Oil Export Tax Act
Petro-Canada Public Participation ActFootnote 12
Prince Edward Island Subsidy Act
Provincial Subsidies Act
Spending Control Act
Supplementary Fiscal Equalization Payments 1982-1987Act
Teleglobe Canada Reorganization and Divestiture ActFootnote 13

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 their 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, the Minister has assigned responsibilities under the Acts in addition to their 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 ActFootnote 14

 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 Education Savings Act
Canada Emergency Response Benefit Act
Canada Emergency Student Benefit Act
Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act
Canada Infrastructure Bank 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 Health Events of National Concern Payments 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.

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. The Minister of Finance must table the first report under the Borrowing Authority Act by November 23, 2020 and indicate whether the maximum amount of borrowings authorized by Parliament should be increased or decreased.

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 permanent 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. Starting in 2018-19, reporting has been consolidated into the Report to Parliament on the Government of Canada's International Assistance.

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 provides advice to the Government of Canada on enhancing systemic risk management and criminal enforcement in Canada's capital markets in support of advancing the proposed federal Capital Markets Stability Act (CMSA). The Transition Office also supports the Government of Canada's participation in establishing the proposed Cooperative Capital Markets Regulatory System. The Government is working with the governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Newfoundland and Labrador (most recent signatory (March 2020)), Nova Scotia, Prince Edward Island, and Yukon to establish the Cooperative System.

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 * information 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 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 circulation coin designs on the recommendation of the Minister of Finance. The Mint may also, under the Royal Canadian Mint Act, produce numismatic coins and precious metal coins. The Minister of Finance must approve numismatic and precious metal coin designs.

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).

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.

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 and implements in domestic law several international trade agreements, notably the Harmonized Systems (HS) Convention and preferential tariff treatment pursuant to Canada's international free trade agreements (FTAs). 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 under Canada's FTAs and unilateral preference programs for goods from developing and least developed countries. The Customs Tariff also includes authority to reduce or remove duties on imported manufacturing inputs to enhance the competitiveness of Canadian producers and allows for emergency measures to address injurious imports and to enforce Canada's rights under FTAs.

The Minister of Finance is responsible for setting tariff policy while the Minister of Public Safety and Emergency Preparedness is responsible for the administration of imports through the Canada Border Services Agency (CBSA), which administers the Customs Tariff and the Customs Act. While the separate Customs Act is primarily the responsibility of the Minister of Public Safety and Emergency Preparedness, the Minister of Finance has some specific authorities and responsibilities (e.g. interest rates).

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, in an amount not to exceed US$120 million, and a supplemental subscription for additional shares in an amount not to exceed US$86 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. Previously, three separate reports responding to the Official Development Assistance Accountability Act (ODAAA), the Bretton Woods and Related Agreements Act (Bretton Woods Act), and the European Bank for Reconstruction and Development Agreement Act (EBRD Act) were tabled in Parliament throughout the year. The Budget Implementation Act, 2018, No. 2 included legislative amendments that aligned the respective reporting timelines, making it possible to publish and table consolidated international assistance reporting.

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 Bestof- 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; three provinces (Ontario, Québec and Prince Edward Island) have signed five-year agreements; and British Columbia has signed extensions to its 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 First Nations operating under the Indian Act in respect of the GST on sales of fuel, tobacco products and alcoholic beverages. The government has also entered into arrangements with thirty-eight First Nations operating under the Indian Act 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 sixty-one 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.

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.

Part IV.1 was added to the Act in 2009 and amended in March 2020 through the COVID-19 Emergency Response Act, 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.

It also allows the Minister of Finance to make payments to provinces of entities for the purposes of responding to a situation of significant and systemic economic and financial distress.

The requirement to seek Governor in Council approval for these authorities was temporarily suspended until September 30, 2020, to respond to the COVID-19 pandemic.

During the same period, additional authorities were added to allow the Minister of finance, with the approval of the Governor in Council, to establish a corporation or another entity if necessary to promote the stability or maintain the efficiency of the financial system in Canada. These powers also expire on September 30, 2020.

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.

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 Indigenous governments of a First Nations goods and services tax (FNGST) on their lands. The Act is "opt-in" legislation and the Minister negotiates a tax administration agreement only at the request of an interested Indigenous government. The FNGST is payable by both the citizens of the Indigenous government 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 the seamless operation of the GST/HST and the FNGST imposed by an Indigenous government. The application of an FNGST is subject to the conclusion of a tax administration agreement between the Minister and the authorized body of an Indigenous government. The agreement must be approved by the Governor in Council.

Part 2 of the Act facilitates the establishment of direct sales tax arrangements between the governments of specified provinces and interested First Nations operating under the Indian Act 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 supportFootnote 15 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, Climate Action Incentive payments). 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 Agreement states 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 Act was amended most recently in June 2017 to introduce a number of changes aimed at strengthening Canada's trade remedy regime (including the creation of scope and anti-circumvention mechanisms). This was followed by further regulatory changes in 2018 and 2019.

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.

Federal-Provincial Relations and Social Policy Branch

Federal-Provincial Relations and Social Policy is composed of about 75 employees across two Divisions that provide policy analysis and advice on social issues and federal-provincial relations (such as funding transfers to PTs).

Federal-Provincial Relations Division

Social Policy Division

Indigenous Policy and Northern Division

Federal-Provincial Relations: Roles & Responsibilities

The Division supports the Government in its provision of the four major federal transfers.

$81.6 Billion in Major Transfers to Provinces and Territories in 2020-21

British Columbia

Canada Health Transfer $5.7 Billion
Canada Social Transfer $2 Billion

Alberta

Canada Health Transfer $4.9 Billion
Canada Social Transfer $1.8 Billion

Saskatchewan

Canada Health Transfer $1.3 Billion
Canada Social Transfer $467 M

Manitoba

Canada Health Transfer $1.5 Billion
Canada Social Transfer $546 M
Equalization $2.5 Billion

Ontario

Canada Health Transfer $16.3 Billion
Canada Social Transfer $5.8 Billion

Quebec

Canada Health Transfer $9.4 Billion
Canada Social Transfer $3.4 Billion
Equalization $13.3 Billion

New Brunswick

Canada Health Transfer $860 M
Canada Social Transfer $309 M
Equalization $2.2 Billion

Nova Scotia

Canada Health Transfer $1.1 Billion
Canada Social Transfer $388 M
Equalization $2.1 Billion

Prince Edward Island

Canada Health Transfer $177 M
Canada Social Transfer $63 M
Equalization $454 M

Newfoundland and Labrador

Canada Health Transfer $569 M
Canada Social Transfer $204 M

Yukon

Canada Health Transfer $45 M
Canada Social Transfer $16 M
Territorial Formula Financing $1.1 Billion

Nunavut

Canada Health Transfer $44 M
Canada Social Transfer $16 M
Territorial Formula Financing $1.7 Billion

Northwest Territories

Canada Health Transfer $49 M
Canada Social Transfer $18 M
Territorial Formula Financing $1.4 Billion

The Division also provides advice and analysis on public pension issues:

Finally, the Division also plays a "challenge function" role in other files such as:

Health, Culture and Housing

Justice and Security

Labour Markets and Immigration

Strategic Policy Development

The Branch is responsible for providing advice and analysis to the Minister and senior management on the government's broad social agenda, especially from the perspective of the intersection of social, economic and fiscal policy.

Social Policy: Roles & Responsibilities

Health, Culture and Housing

Justice and Security

Labour Markets and Immigration

Strategic Policy Development

The Section is responsible for providing advice and analysis to the Minister and senior management on discrete social policy initiatives.

Most recently, the section has been working closely with Health Canada on national pharmacare, including:

Indigenous Policy and Northern Division: Roles & Responsibilities

Indigenous Policy - Social

Indigenous Policy -Economic

The Branch is responsible for providing advice and analysis to the Minister and senior management on the government's broad agenda as it relates to the full suite of Indigenous programs and services, especially from the perspective of the intersection of social, economic and fiscal policy.

Indigenous Policy - Social

Indigenous Policy - Economic

Contribution to Flagship Commitments

FPRSP Branch has contributed to the Government's Flagship commitments, such as:

Annex 1: Management Structure

Assistant Deputy Minister: Michelle Kovacevic

Economic and Fiscal Policy Branch

Assistant Deputy Minister: Nick Leswick

Associate Assistant Deputy Minister: Alison McDermott

Economic Studies and Policy Analysis Division

Economic Analysis and Forecasting Division

Fiscal Policy Division

Staff of approximately – 75

Majority are economists (MA/Ph.D.)

Branch Structure

Fiscal Policy

Economic Forecasting

Economic Policy Analysis

Financial Sector Policy Branch

Financial Sector Policy: A Key Responsibility of the Minister of Finance

Existing Federal and Provincial Financial Sector Frameworks
Federal Provincial
Incorporation Banks n/a
Incorporation (e.g. Trust and Loan Companies, Federal Credit Unions) Other Deposit- Taking Institutions Incorporation (e.g. Credit Unions)
Incorporation Insurance

Incorporation
Market conduct

Federally regulated employers Private Sector Pension Plans Provincially regulated employers
Systemic risk Capital Markets Registration
Market conduct
Banks Consumer Protection Property and civil rights
Contract law

Role of the Branch

Organizational Structure

Assistant Deputy Minister: Leah Anderson

Associate Assistant Deputy Minister: Soren Halverson

Financial Stability and Capital Markets Division

Financial Crime and Security Division

Financial Services Division

Financial Institutions Division

Funds Management Division

Total Staff = 125 (Approximately)

The Five Corners of FSPB

Financial Institutions

Financial Crime and Security

Financial Stability and Capital Markets

Funds Management

Financial Services

Current Policy Priorities – Stability & Integrity

Current Policy Priorities – Efficiency & Utility

Introduction to the Tax Policy Branch - Department of Finance

Overview

Introduction to Tax Policy Branch:

Role of the Tax Policy Branch

Tax Policy Branch provides analysis, research, and advice to the Minister of Finance on the Government of Canada's tax policy agenda.

Who We Are

About 160 current employees playing diverse roles such as policy analysts (economists), research analysts, legislative drafters (lawyers), and negotiators (aboriginal tax policy, international tax treaties).

Organized along five divisions and liaise with Finance Legal Services.

Senior Assistant Deputy Minister: Andrew Marsland

Personal Income Tax

Sales Tax

Business Income tax

Tax Legislation

Intergovernmental Tax Policy, Evaluation & Research

Liaise With

Tax Policy Development Process

Identify potential measures/issues:

Assess and advise:

Implement:

Examples of Tax Policy Branch Issues

Outstanding Income Tax Amendments

Taxation Agreements (excise duty) with provinces and territories.

Digitalization and Taxation

Indigenous Tax Policy Negotiations

Carbon Pollution Pricing and the Environment

Role in COVID-19 Response

International Trade & Finance (ITF)

Our Landscape

Assistant Deputy Minister: Katharine Rechico

International Policy & Analysis

International Finance & Development

International Trade Policy

International Policy & Analysis

International Finance & Development

International Trade Policy

Policy & Analysis

Finance & Development

Economic Development & Corporate Finance

EDCF Organizational Structure

Economic Development and Corporate Finance Branch

Assistant Deputy Minister: Richard Botham

Sectoral Policy Analysis

Microeconomic Policy Analysis

Corporate Finance, Natural Resources and Environment

EDCF – a snapshot

EDCF Policy Responsibilities

EDCF – a vibrant policy shop

Analysts in the branch:

Business competitiveness and growth

Innovation

Environment and Resource Industries

Key issues we are working on (con'd)

Transportation and infrastructure

Other issues

Consultations & Communications Branch

Sarah Lawley
Assistant Deputy Minister

Overview of the Branch

The Consultations and Communications Branch provides timely and high-quality strategic communications advice to the Department. This includes developing communications plans and products related to initiatives, including pre-budget consultations and the tabling of the Economic Fiscal Update and the Budget. The Branch is responsible for the management of the Department's communications channels including Web, print and social media.

The Branch supports the Minister and Department by managing media relations, consultations, ministerial visits, conferences and protocol, parliamentary affairs, Access to Information and Privacy (ATIP) requests as well as publishing and translation.

Role of Departmental Communications Staff

The objective of departmental communications staff is to provide Finance Canada communications that are non-partisan, non-promotional, high quality, timely, accurate, objective and clear.

All communications products must comply with the Values and Ethics Code for the Public Sector and the Policy on Communications and Federal Identity and supporting guidance which mandates that products are available in both official languages and, when provided electronically, adhere to international guidelines on web accessibility to ensure that persons with disabilities can interact with the content provided. Communications must be also be conducted in an economic and appropriate way so that departments are able to justify the costs as legitimate expenditures of public funds.

Consultations & Communications - Organizational Chart

Assistant Deputy Minister: Sarah Lawley

Assistant Deputy Minister's Office

Director General's Office

Senior Director's Office - Communication Strategy

Senior Director's Office - Public Affairs & Operations

Assistant Deputy Minister's Office

Assistant Deputy Minister (ADM)

Director General's Office

Director General (DG)

Access to Information and Privacy (ATIP)

Parliamentary Affairs

Strategy Division

Strategy

Media Relations, Research and Analysis

Departmental Correspondence

Public Affairs and Operations Division

Events and Internal Communications

Creative Services, Marketing and Data Visualization

Language Services

Publishing & Web

Pre-Scheduled Publications and Tablings

Monthly

Quarterly

Annually

Law Branch

Assistant Deputy Minister & Counsel to the Department of Finance: Isabelle Jacques

Finance Legal Services

Values and Ethics

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