2019 Federal election: The Caretaker Convention explained (2019 transition binder)

Introduction

The Caretaker Convention applies during the election period to:

• Require that the Government confine itself to necessary public business
• Avoid binding future governments to the extent possible

Background

Why does it apply?

• The Caretaker Convention upholds the principle of responsible government, which requires the Government to command the confidence of the House of Commons
• During an election Parliament is dissolved; there is no elected chamber to which ministers can be held to account

How does it apply?

• Government is expected to exercise restraint with new policies, expenditures and appointments, since it cannot assume it will command the confidence of the House of Commons in the next Parliament

Impact on FCAC?

• During an election, FCAC can continue to engage in ordinary government business, i.e., activities that are routine and necessary to the delivery of its mandate

Application timeline

• FCAC exercises caution
  • Pre-election period (“Grey zone”)
  • Caretaker Convention not in force
• FCAC exercises restraint
  • Election called
  • Caretaker Convention in force
• FCAC operates as usual
  • Post election
  • New Government sworn in
  • Caretaker Convention not in force

In short

During the election, FCAC should restrict itself to activity that is:

• Routine
• Non-controversial
• Urgent and in the public interest
• Reversible by a new government without undue cost or disruption
• Agreed to by opposition parties (in those cases where consultation is appropriate)

Examples of suitable FCAC activity:

• Pursuing enforcement action against a regulated entity for breach of legislative, regulatory or code obligations and issuing a Commissioner decision in this regard

Examples of non-suitable FCAC activity

• Introducing a new code of conduct or strategy relating to financial literacy