How Finance Works Binder

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. Federal-Provincial Relations
6. Legislation and Statutory Responsibilities
7. Branch Overview Decks
   • Economic Policy Branch
   • Fiscal Policy Branch
   • Tax Policy Branch
   • Federal-Provincial Relations and Social Policy Branch
   • Economic Development Branch
   • Crown Investment and Asset Management Branch
   • Financial Sector Policy Branch
   • International Trade and Finance Branch
   • Consultation and Communications Branch
   • Law Branch
   • Corporate Services Branch
   • Internal Audit Directorate

Overview

The Department of Finance Canada 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 $83.9 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 of 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 of 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 7 of your binder).

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

The Department of Finance Canada Portfolio Organizations and Responsibilities

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

• Bank of Canada
• Canada Deposit Insurance Corporation
• Office of the Superintendent of Financial Institutions
• Financial Consumer Agency of Canada
• Financial Transactions and Reports Analysis Centre of Canada
• Canada Pension Plan Investment Board
• Canada Development Investment Corporation (of which the Trans Mountain Corporation and the Canada Hibernia Holding Corporation are subsidiaries)
• Royal Canadian Mint
• Canadian Securities Regulation Regime Transition Office
• Canadian International Trade Tribunal

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 3 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 Organisation for Economic Co-operation and Development (OECD), and the Asia-Pacific Economic Cooperation (APEC). Full details of the Minister’s responsibilities as they relate to international groups and organizations are included in Section 4 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 ensures that provincial and territorial governments have sufficient revenue to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.

In fiscal year 2021 to 2022, major transfer payments will represent over $83 billion:

• The Canada Health Transfer: $43.1 billion
• The Canada Social Transfer: $15.5 billion
• Equalization: $20.9 billion
• Territorial Formula Financing: $4.4 billion

The Minister and the Department of Finance Canada (the department) 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 5 of your binder.

Structure and Management

• Federal-Provincial Relations and Social Policy Branch
• Financial Sector Policy Branch
• Tax Policy Branch
• International Trade and Finance Branch
• Economic Development Branch
• Crown Investment and Asset Management Branch
• Consultations and Communications Branch
• Law Branch
• Corporate Services Branch
• Economic Policy Branch
• Fiscal Policy Branch

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.

2021—2022 Departmental Budget

The department has an operating budget of $114.1 million and a staff of 826 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 $103.6 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

Text Version

The Department of Finance Canada Portfolio Organizations and Responsibilities

Crown Corporations Part of the Department of Finance Portfolio, for which the Minister of Finance has Statutory Responsibility

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

The Bank of Canada is Canada’s central bank, directly responsible for Canada’s monetary policy. The Minister of Finance, with the approval of the Governor in Council, appoints the members of the Bank’s Board of Directors for three-year terms. There are currently two vacancies on the Board. With the resignation of one incumbent on August 20, 2021, in advance of a February 28, 2023 expiration date, in accordance with statute, an appointment is required for the remainder of the term. The terms of two incumbents will expire in February 2022.The current Governor was appointed on June 2, 2020.

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.

Officials from the Department of Finance work closely with colleagues at the Bank on such issues as macroeconomic performance, debt management, and financial sector regulation. In addition, the Minister of Finance and the Governor consult regularly on monetary policy with respect to its relation to economic policy. In case of conflict, the Minister of Finance is ultimately responsible for monetary policy.

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.

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 Bank of Canada is responsible under the Payment Clearing and Settlement Act to oversee 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, and can 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.

The Bank of Canada will also be responsible under the Retail Payment Activities Act to oversee payment service providers — such as card networks, payments processors and e-wallets — to ensure they are safe and secure for consumers and businesses. Under this Act, which received Royal Assent on June 29, 2021, the Bank of Canada will be responsible for ensuring that payment service providers comply with requirements to register. The Act also includes safeguards, under the authority of the Minister of Finance, to address national security-related risks.

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 2020, this amount totalled $1.8 billion.

B. Canada Deposit Insurance Corporation (Leah Anderson, Interim 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 contribute to financial stability in Canada. Its members are federally incorporated deposit-taking institutions and provincially incorporated institutions that are authorized by provincial legislation to apply for its deposit insurance.

The Minister recommends CDIC’s Corporate Plan for Governor in Council approval, and recommends Treasury Board approval of its operating and capital budgets. The Minister must also approve the Corporation’s annual borrowing plan, the deposit insurance premiums charged to member institutions, and any change in the formula used to calculate the premiums. The Minister must also approve and table in Parliament the annual Summary of the Corporate Plan, as well as the CDIC Annual Report.

The Canada Deposit Insurance Corporation Act sets out the powers that the Corporation can use in the case of failure of one its members. If the Minister supports the Corporation’s resolution options, a ministerial recommendation to the Governor in Council would be made to execute the resolution strategy.

The President & CEO and Chairperson are appointed by the Governor in Council after the Minister has consulted the Board of Directors. Up to five private sector directors are appointed by the Minister with approval of the Governor in Council. Five public sector directors from the Department of Finance Canada, the Bank of Canada, the Office of the Superintendent of Financial Institutions and the Financial Consumer Agency.

CDIC is funded through the premiums collected from member institutions. In fiscal year 2020 21, it collected $739 million in insurance premiums and maintained approximately $6.4 billion to resolve problem member institutions.

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

The Canada Development Investment Corporation’s (CDEV) initial mandate was to manage Crown corporations and other government investments assigned to it, and to divest these holdings when appropriate. Since 2009, it has been mandated to assist the government by reviewing assets (e.g., commercially-oriented Crown corporations, airports), securing expert third party financial, technical and strategic advice for the government on specific assets, and 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. CDEV is also responsible for the Net Profits Interest (NPI) and Incidental Net Profits Interest (INPI) agreements related to the Hibernia oil project.

CDEV currently has four wholly owned subsidiaries:

• The Trans Mountain entities, including Trans Mountain Corporation, which operate the existing Trans Mountain pipeline and related assets and are responsible for the Trans Mountain Pipeline expansion project.
• Canada Hibernia Holding Company (CHHC), a subsidiary that manages the Government’s 8.5 per cent interest in the Hibernia oil project offshore of Newfoundland.
• Canada Eldor Inc., a subsidiary company which holds the remaining federal liabilities resulting from the 1988 privatization of Eldorado Nuclear.
• Canada Enterprise Emergency Funding Corporation (CEEFC), which is responsible for administering the Large Employer Emergency Financing Facility (LEEFF), which provides bridge financing for large Canadian companies affected by COVID-19.

The Minister of Finance is responsible to Parliament for the Canada Development Investment Corporation, and makes recommendations to the Governor in Council on appointments to the Board of Directors, including the Chairperson. The position of President has been a long-standing vacancy with the duties carried out by an Executive Vice-President until his retirement on September 30, 2020. A selection process was undertaken and is underway. Up to six additional directors are appointment by the Minister with the approval of the Governor in Council. The Minister is also required annually to submit CDEV’s five-year corporate plans and capital budgets for Treasury Board consideration and approval. In addition, the Minister of Finance is required to table CDEV’s Corporate Plan Summary, Annual Report, and Annual Reports from CDEV and its subsidiaries under the Access to Information and Privacy acts.

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 Financial Administration Act, as the Executive Vice President has not been appointed by the GIC but was performing the duties of a President. The Department of Finance has been working with CDEV and the Privy Council Office (PCO) to develop a process that would lead to a Governor in Council-appointed President in the future.

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 in 1931 became a branch of the Department of Finance Canada. Since 2011, the Mint has reported to Parliament through the Minister of Finance.

The Mint’s 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.

The Mint must prepare a Corporate Plan every year, and the Minister of Finance is responsible for signing and seeking Treasury Board approval. The Minister is responsible for tabling a summary of the Corporate Plan and Capital Budget, and the Annual Report before Parliament. The Minister 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 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 Chairperson of the Board is appointed by the Governor in Council, whereas the Minister appoints other directors subject to Governor in Council approval.

E. Canada Pension Plan Investment Board (John Graham, 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). 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, 2021, CPP assets totalled $497.2 billion. Over the past ten years, the annualized net rate of return on investment has been 10.8 per cent. The base CPP earned a 20.5 per cent net nominal rate of return on investments for fiscal 2021. An additional CPP account, introduced in January 1, 2019 to increase the maximum benefit level from one-quarter to one-third of average work earnings covered by the CPP, ended the same period with net assets of $6.3 billion and a net nominal rate of return of 11.6 per cent.

The Minister of Finance makes recommendations to the Governor in Council on appointments to the CPPIB’s 12-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). The Minister of Finance also appoints the chairperson of the nominating committee. Since October 2014, when amendments to the CPPIB Act came in to force, up to three of the twelve directors may be non-residents of Canada. CPPIB performs all aspects of the search and assessment process before providing the nominating committee with a shortlist of recommended candidates.

The Minister of Finance, in consultation with the provinces, is responsible for proposing any changes to the CPPIB legislative framework to Parliament, and for the special examination of the CPPIB’s internal controls, systems, and management practices every six years.

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

As an arm’s-length Crown Corporation, the Department of Finance 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.

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, 2021, CPPIB had annual operating expenses of $1.4 billion.

Agencies Part of the Department of Finance Canada Portfolio, for which the Minister of Finance has Statutory Responsibility

A. Office of the Superintendent of Financial Institutions (OSFI) (Peter Routledge, 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 federally regulated 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.
• Supervise federally regulated financial institutions and pension plans to determine whether they are in sound financial condition and meeting regulatory and supervisory requirements.
• Monitor and evaluate system-wide or sectoral developments that may have a negative impact on the financial condition of federally regulated financial institutions.
• 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, and the Minister is responsible for tabling The Superintendent is appointed by the Governor in Council. As a matter of practice, the Minister makes the recommendation to the Governor in Council. Peter Routledge was appointed Superintendent of Financial Institutions on June 29, 2021, for a seven-year term.

OSFI’s Annual Report in Parliament, as well as Departmental Plan and Departmental Results Report to the Treasury Board. OSFI also briefs the Minister regarding companies on its watch list.

In fiscal year 2020-21, OSFI’s estimated total expenses were $201.3 million. 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.

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

The Financial Consumer Agency of Canada (FCAC) supervises the compliance of federally regulated financial institutions with the consumer provisions in the financial institutions and payments statutes. Budget Implementation Act 2018, No. 2 significantly expanded its mandate, providing new supervisory and enforcement powers and tools and contained more than 60 new or expanded consumer protection measures as part of the new Financial Consumer Protection Framework, which will come into force June 30, 2022.

The FCAC also monitors voluntary codes of conduct designed to protect the interests of consumers and merchants, 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 Commissioner is appointed by the Governor in Council. As a matter of practice, the Minister makes the recommendation to the Governor in Council. The appointment of the current Commissioner of the FCAC, Judith Robertson, expires on August 18, 2024.

The Minister of Finance approves the FCAC’s corporate/financial documents such as the Annual Report tabled in Parliament and an annual business plan. In addition, the Commissioner of the Agency reports to the Minister on the FCAC’s operations, federally regulated financial institutions’ compliance with consumer protection measures, and any other special examinations.

The FCAC is funded through assessments on federally regulated financial institutions and by an annual statutory appropriation of $5 million to support its financial literacy activities.

The Agency’s role is complementary to the Office of the Superintendent of Financial Institutions by ensuring compliance with the federal consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies. It also provides consumers with accurate and objective information about financial products and services through its financial literacy initiatives.

C. Canadian International Trade Tribunal (Frédéric Seppey, Chairperson)

The Minister of Finance is responsible for the Canadian International Trade Tribunal, which reports to Parliament through the Minister of Finance. A Chairperson, Vice-chairperson and up to five other permanent, full-time members are appointed by the Governor in Council. Up to five additional temporary members may also be appointed by the Governor in Council if workload so requires. The Tribunal is currently comprised of one Chairperson, five permanent Members, and one temporary Member. * Sentence redacted *. The Tribunal is an independent and quasi-judicial body and, as such, the Minister of Finance maintains a strict arms-length relationship with the Tribunal.

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 Tribunal-related issues resides with the department’s International Trade Policy Division.

The Tribunal is an administrative body operating within Canada’s trade system. It is responsible for the conduct of anti-dumping and countervailing duty injury inquiries, as well as safeguard injury inquiries. It also conducts inquiries into any economic, tariff, trade and commercial matters that may be referred to by the Governor in Council or the Minister of Finance. As well, the Tribunal hears appeals of decisions on customs and excise matters, and adjudicates complaints from suppliers that federal public procurement decisions are in breach of obligations under certain trade agreements.

The main laws and regulations governing the work of the Tribunal are the Canadian International Trade Tribunal 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.

D. Financial Transactions and Reports Analysis Centre of Canada (Sarah Paquet, 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 regulator. It is responsible for the detection, prevention and deterrence of money laundering and terrorist financing activities, while ensuring the protection of personal information under its control and safeguarding individuals’ privacy and Charter rights.

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, Canada Revenue Agency, Canadian Security Intelligence Service). FINTRAC:

• Collects and analyses information received from financial transaction reports and reports of suspicious financial activities.
• Ensures compliance by reporting entities with customer identification, reporting, record keeping and compliance obligations.
• Makes disclosures of financial intelligence to the appropriate law enforcement agency or other designated authorities.
• Conducts outreach to reporting entities to enhance awareness and understanding of trends related to money laundering and terrorist financing.
• Conducts its activities while ensuring the protection of the personal information under its control.
• Administers an administrative monetary penalty regime for non-compliance.

While an independent agency, the Minister of Finance is responsible for reviewing and approving FINTRAC’s Annual Report, Departmental Plan, and 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. FINTRAC, with the Minister’s approval, enters into Memoranda of Understanding with other countries for the sharing of information between the financial intelligence units.

The Governor in Council appoints the Director for a term of not more than five years. The Director is eligible for reappointment and may serve up to a maximum of ten years in office. As a matter of practice, the Minister makes the recommendation to the Governor in Council. The appointment of the current Director of FINTRAC, Sarah Paquet, expires on November 18, 2025.

FINTRAC supervises approximately 24,000 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. It receives more than 30 million new financial transaction reports every year.

E. Canadian Securities Regulation Regime Transition Office (Doug Hyndman, President and Chief Executive Officer)

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. The Office also supports the Government of Canada’s participation in establishing the proposed Cooperative Capital Markets Regulatory System, working with the governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Yukon.

CSTO is required to regularly inform the Minister of Finance of its activities and progress, and prepare an annual report, which the Minister must table in both Houses of Parliament. The Minister may:

• Make direct payments to fund the CSTO’s operations.
• Recommend to the Governor in Council the appointment, remuneration and allowances of a president, or two co-presidents.
• Recommend to the Governor in Council the appointment, remuneration and allowances of members of the Advisory Committee.
• Approve any agreement between the CSTO and the government of a province or territory that the president considers necessary or advisable.

The CSTO is comprised of leading securities lawyers and capital markets risk experts who provide high-quality advice to the department on all aspects of the establishment of the Cooperative System, with a focus on the proposed Capital Market Stability Act as well as implementation and launch options.

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

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

Shared responsibility with Minister of Small Business, Export Promotion and International Trade

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 Minister of Finance’s role is to approve the amounts, and terms and conditions for any borrowings from the capital markets or the Consolidated Revenue Fund. 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:

• Provide concurrence for the subscription of any un-issued shares.
• Recommend any by-laws relating to shares.
• Recommend approval for the issuance of hybrid capital instruments to persons other than the Crown.
• Be consulted when the Minister of Small Business, Export Promotion and International Trade undertakes a review of the BDC’s mandate.

The BDC operates 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 more than 72,000 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 fiscal year 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 Chief Executive Officer, Martine Irman, Chairperson) and FinDev Canada (Lori Kerr, Chief Executive Officer, Mairead Lavery, Chairperson)

Shared responsibility with Minister of Small Business, Export Promotion and International Trade

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 of Small Business, Export Promotion and 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 the Canada Account, which is an account administered by EDC that the Government may use to support exporters with various financing tools in cases where EDC is unable to rely on its Corporate Account due to financial capacity or risk constraints.

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 Canada Emergency Business Account in March 2020, and most recently support to Telesat and Lower Churchill in August 2021. The Canada Account is also used to support industrial development in key sectors such as clean technology.

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. FinDev Canada, Canada’s Development Finance Institution, is a subsidiary of EDC. It is headquartered in Montreal and has its own Board and CEO. Its corporate reporting is consolidated with that of EDC. The Minister of Finance is responsible for approving EDC’s borrowing plan and recommending EDC’s Corporate Plan for Treasury Board’s approval. . The Department of Finance also leads the Canadian delegation to the Organisation for Economic Co-operation and Development (OECD) Arrangement on Officially Supported Export Credits and the International Working Group (IWG) on export credits, two forums created to govern the use of official export credits by export credit agencies, including EDC, and promote a level playing field for exporters.

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. In response to the COVID-19 pandemic, the Government amended the Export Development Act to enable EDC to temporarily support domestic businesses at the request of the Minister responsible for international trade and the Minister of Finance. In March 2020, the Ministers requested that EDC support domestic businesses until December 31, 2021. * Sentence redacted *.

C. Canadian Commercial Corporation (Robert Kwon, President and Chief Executive Officer Douglas Harrison, Chair of the Board of Directors)

Shared responsibility with Minister of Small Business, Export Promotion and International Trade

The Canadian Commercial Corporation (CCC) acts as a prime contractor on behalf of Canadian suppliers in their export transactions with foreign government buyers. The Government of Canada, through the CCC, guarantees the performance of Canadian suppliers to foreign governments. CCC’s two primary business lines are supporting Canadian exporters contracting with the US Department of Defense through the Canada-US Defence Production Sharing Agreement, and with foreign governments in defence and non-defence sectors.

The Minister of Small Business, Export Promotion and 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 projects through 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.

The Department of Finance’s interest in CCC relates to risk management, borrowing, and the broader public policy role of the Corporation. * Sentence redacted *.

In fiscal year 2019-20, CCC activities contributed to $3.17 billion in goods and services exports from Canadian firms, 40 per cent of which were small- and medium-sized enterprises, and supported 13,000 jobs. Exports to the United States under the Defence Production Sharing Agreement accounted for 29 per cent of these exports.

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

Shared responsibility with Minister of Agriculture and Agri-Food

Farm Credit Canada’s 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 fiscal year 2020-21, loans receivable were $38.4 billion in 2019-20 and $41.3 billion in 2020-21.

The Minister of Agriculture and Agri-Food is responsible to Parliament for the FCC. 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 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, and may require that the Minister’s 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.

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 28.7 per cent in 2019. FCC is financially self-sustaining and profitable; * part of sentence redacted *.

In 2019, FCC paid dividends of $394.8 million, with $2.9 billion in dividends projected over the 2021-22 to 2025-26 planning horizon.

E. Canada Mortgage and Housing Corporation (Romy Bowers, President and Chief Executive Officer; Derek Ballantyne, Chair of the Board of Directors)

Shared responsibility with Minister of Families, Children and Social Development

Canada Mortgage and Housing Corporation (CMHC) has a mandate to promote housing affordability and choice, to facilitate access to housing finance, and contribute to the well-being of the housing sector. As Canada’s national housing agency, it plays a significant role in administering federal investments in social housing through agreements with provinces and territories and First Nations communities. The agency 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, and 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 legislated powers and duties, including:

• Approving CMHC borrowings.
• Recommending CMHC’s Corporate Plan before it is submitted to GIC.
• Setting the parameters for government-backed insured mortgages (after consulting the Governor of the Bank of Canada and the Superintendent of Financial Institutions).
• Setting the parameters for government-backed mortgage securitization guarantees.
• Setting the parameters for covered bonds.
• Setting the fees CMHC must pay for exposure to risks related to mortgage insurance and mortgage securitization guarantees.

In response to the COVID-19 pandemic, CMHC took 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 provided stable funding to banks and mortgage lenders in order to ensure continued lending to Canadians.

CMHC is one of the largest Crown corporations in the Government’s portfolio by assets, liabilities, and revenue and government funding ($301 billion, $284 billion and $7.9 billion, respectively, at year-end 2020). 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 2020, CMHC’s insurance-in-force was $431 billion and guarantees-in-force totalled $489 billion. As an agent Crown corporation, the Government fully backs CMHC liabilities, including its borrowings.

F. Canada Infrastructure Bank (Ehren Cory, Chief Executive Officer; Tamara Vrooman, Chair of the Board of Directors)

Shared responsibility with Minister of Infrastructure and Communities

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. It 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 Minister of Finance has the statutory power to provide up to $35 billion out of the Consolidated Revenue Fund to the CIB, responsibility for providing concurrence to its corporate plans, and authorities with respect to the provision of its loan guarantees.

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. It 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 intent to invest up to $1 billion in this asset class (subsequently increased to $3 billion), complementing other federal initiatives.

Statutory Responsibilities for Other Organizations

A. Office of the Auditor General (Karen Hogan, Auditor General of Canada)

The Auditor General (AG) is an officer of Parliament, appointed by the Governor in Council (GIC) 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:

• Financial audits — testing whether financial transactions support the amounts and disclosures in the financial statements.
• Performance audits — assessing of how well government is managing its activities, responsibilities and resources.
• Special examinations — assessing whether a Crown corporation’s systems and practices provide reasonable assurance that its assets are safeguarded, its resources are managed economically and efficiently, and its operations are carried out effectively.

As part of the Minister of Finance’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 Canada.

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.

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, the Minister of Finance has 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.

The Auditor General is an Officer of Parliament appointed for a non-renewable 10-year term upon resolution of the House of Commons and Senate. The Minister of Finance has been designated as the appropriate Minister for the purposes of the Financial Administration Act. Karen Hogan was appointed as Auditor General of Canada on June 8, 2020.

The AG is the auditor of the Department of Finance Canada 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 of government borrowings. The Minister of Finance may also require that the AG participate in the destruction of redeemed or cancelled debt securities.

B. Canadian Payments Association (Garry Foster, Chair of the Board, Tracey Black, President and Chief Executive Officer)

The Canadian Payments Association (CPA), also referred to as Payments Canada, owns and operates the country’s core clearing and settlement payment systems. Banks are required to be members of Payments Canada and other regulated financial institutions (Caisse Populaires, Credit Unions, Trust Companies, etc.) can voluntarily join.

Under the Canadian Payments Act, The Minister of Finance must approve any new by-laws or by-law changes. In addition, any changes to Payments Canada’s rules are subject to a 30-day period of examination by the Minister, during which time the Minister may disallow the rule. Payments Canada must submit a five-year Corporate Plan on an annual basis for the Minister’s approval. The Minister must also be consulted on any appointments to Payments Canada’s Stakeholders Advisory Council. The Minister has a directive power over Payments Canada, which can be used if the Minister is of the opinion that it is in the public interest.

Canada’s clearing and settlement systems enable consumers and businesses to make and receive payments throughout the country quickly and reliably. Payments Canada operates the national clearing and settlement systems that facilitate this flow of funds between institutions and mitigates risk to payment system participants. In 2019, Payments Canada’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.

Payments Canada is currently engaged in a multi-year modernization project to bring about payment systems that are fast, flexible and secure, that promote innovation and strengthen Canada’s competitive position.

C. Capital Markets Authority Implementation Organization (Jill Leversage, Chair of the Board of Directors

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.

In 2015, the Council of Ministers of Participating Jurisdictions overseeing the initiative established the Capital Markets Authority Implementation Organization, to lead the non-legislative aspects of the implementation of the Cooperative System. In March 2021, in light of delays developing the legislation to create the Cooperative System, the Capital Markets Authority Implementation Organization’s Board of Directors announced a pause in its operations effective March 31, 2021.

The 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. It provides quarterly activity and expenditure reports, as well as annual reports, to the Council of Ministers.

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.

D. 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 fiscal year 2017-18, sourced from green infrastructure funding. Budget 2019 provided additional $950 million in fiscal year 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.

Relationship 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 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 (IMF), the European Bank for Reconstruction and Development (EBRD), and the Asian Infrastructure Investment Bank (AIIB).

In addition, the Minister of Finance is called upon to attend a range of international meetings of Finance Ministers, including the G7, G20, the Organisation for Economic Cooperation and Development (OECD), Asia-Pacific Economic Cooperation (APEC), Regional Finance Ministers of the Americas, as well as the Commonwealth and La Francophonie.

There are also issues on which the Department of Finance Canada (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, international climate finance and managing ongoing and potential new macro financial assistance loans are current priorities. With respect to international trade, there are emerging international discussions on climate change, supporting Canada’s participation at the World Trade Organization, as well as opportunities to finance clean technology exports.

Group of Seven (G7)

The Group of Seven (G7) comprises the seven largest advanced economies: the U.S., Japan, Germany, France, the U.K., 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. G7 Finance Ministers meet formally once a year, generally a few weeks prior to G7 Leaders Summits. Since the COVID-19 pandemic, Ministers have held frequent calls to coordinate economic support and re-opening measures, and debt-related initiatives.

The U.K. holds the G7 2021 Presidency. While the COVID-19 pandemic has occupied much of the agenda, the U.K.’s topline priorities for the Finance Track include supporting vulnerable countries, tax and digitalization, and climate and biodiversity. Germany will assume the G7 Presidency in 2022. Canada last hosted the G7 Presidency in 2018. Based on the rotating G7 Presidency cycle, Canada is slated to reassume the Presidency in 2025.

Relationship to the Department

G7 Deputies typically meet on the margins of ministerial meetings and hold stand-alone meetings of their own to address a wide range of topics reflecting current events in the global economy. The Department plays a strong role in preparing Canada’s Deputy and Minister of Finance ahead of G7 meetings. Historically an Associate Deputy Minister has occupied the position of G7/G20 Finance Deputy, which is currently vacant. Associated responsibilities are currently being shared by senior management pending the appointment of a Deputy.

Significance

While Canada supports maintaining the G20 as the premier forum for international economic cooperation, the G7 continues to serve a useful purpose as a forum for frank and informal policy discussions on world economic issues among a small group of like-minded countries.

Group of Twenty (G20)

The Group of Twenty (G20) 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 countries, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, and the European Union. International organizations such as the International Monetary Fund (IMF), the World Bank, the Financial Stability Board (FSB) and the OECD, also participate in the meetings.

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, reform of the international financial architecture, and international taxation standards. Italy holds the chairmanship in 2021, and current priorities include efforts to support the global recovery in light of the COVID-19 pandemic; support for vulnerable countries; longer-term pandemic prevention, preparedness and response; international taxation reform; infrastructure investment; tools for addressing climate change; and harnessing the benefits of digital transformation. The chair rotates annually among the members. Indonesia will take on this role in 2022.

Relationship to Minister

The Minister of Finance generally attends Summits (alongside the Prime Minister) and Finance Ministers’ and Central Bank Governors’ Meetings. Finance Ministers and Central Bank Governors typically meet 3 to 5 times per year, and will convene on the margins of the IMF/World Bank Annual Meetings on October 12-13. Italy is scheduled to host the 2021 Leaders’ Summit on October 30-31.

Relationship to the Department

Both the Minister of Finance and the Deputy usually attend the annual G20 Leaders’ Summit along with the Prime Minister. G20 Deputies typically meet on the margins of ministerial meetings, and hold stand-alone meetings of their own. Joint Finance and Health Minister meetings have also been held under recent Presidencies, and are expected to continue. The Department of 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). Historically an Associate Deputy Minister has occupied the position of G7/G20 Finance Deputy, which is currently vacant. Associated responsibilities are currently being shared by senior management pending the appointment of a Deputy.

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 of multilateral interest, 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 influences 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, and periodic meetings with the Managing Director of the Fund (Kristalina Georgieva was named as Managing Director of the IMF on October 1, 2019).

The Minister also exercises influence through Canada’s Executive Director at the Fund’s Executive Board, who they nominate with the approval of the Prime Minister for a two-year term. Ms. Louise Levonian served from November 2018 until July 23, 2021, when she retired. Her replacement has yet to be named. Canada is currently being represented by the Irish Alternate Executive Director. Alongside 23 others, Canada’s Executive Director makes decisions on country financing requests and IMF governance issues. The position of Governor is an automatic appointment upon being sworn in as Minister of Finance. Our Executive Director also represents 11 other countries (Ireland and 10 Caribbean countries). The Governor of the Bank of Canada is Canada’s Alternate Governor of the IMF. Neither appointment has a term limit.

Relationship to the Department

The Department of Finance Canada co-ordinates policy advice on IMF issues and Canada’s operational interests at the IMF. The Department reports on the operations of the IMF as part of the annual 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, which consists of annual assessments of a country’s economic policies and prospects.

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, capacity development and the provision of financial assistance to countries experiencing unsustainable external imbalances and related economic difficulties.

The IMF operates similarly to a credit union. It has a large pool of liquid assets which it makes available to help members finance temporary balance of payments problems. 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. A country’s quota, in turn, helps determine the amount of Fund resources that it may access. Canada is the IMF’s 11^th largest shareholder, with a quota of $19.8 billion or 2.3% of total IMF quotas.

The IMF’s quota resources are supplemented by standing borrowing agreements with some large member countries. In the event that it exhausts its quota-based resources, the IMF can use borrowed resources to lend to countries in crisis. Canada is a participant in both of the main borrowing arrangements, and has agreed to lend $7 billion to the New Arrangements to Borrow (set to expire at the end of 2023) and $15 billion to the Bilateral Borrowing Agreements (set to expire at the end of 2021). Taken together with our quota, Canada’s total financial commitment to the IMF’s main lending window is $41.4 billion. Canada also contributes to the IMF’s Poverty Reduction and Growth Trust, which provides concessional financing to low-income countries.

Since the onset of the COVID-19 pandemic, the IMF has provided an unprecedented volume of emergency financing (approximately US$117 billion to over 85 member countries), along with debt service relief to 29 poor and vulnerable members countries. To boost global liquidity, the Fund also created US$650 billion worth of new global reserves in 2021 through a process known as a general allocation of special drawing rights. Reserves were credited to member countries in proportion to their Fund quota. Canada received roughly US$15 billion ($19 billion).

Going forward, Canada’s main objectives for the IMF are to: 1) 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) work with likeminded countries to champion IMF policy changes and champion the interests of the Caribbean and other small developing states.

World Bank Group

Relationship to Minister

The Minister of Finance is Canada’s Governor on the Board of Governors of the World Bank Group. Canada’s Alternate Governor’s position is currently vacant. The incumbent retired in August 2021. * Sentences redacted *.

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.

Relationship to the Department

The Department of Finance Canada (the Department) coordinates Canadian policy advice on World Bank Group issues and Canada’s operational interests in the World Bank Group. The Department consults with Global Affairs Canada (GAC) on most issues relating to the World Bank Group’s activities.

The management of Canada’s interests in the World Bank Group are the responsibility of the Executive Director, Canada’s representative on the institution’s Executive Board. In addition to Canada, the Canadian Executive Director also represents 12 other countries (Ireland and 11 Commonwealth Caribbean countries) in 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 Governors of our constituency countries.

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 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 World 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. Given the extreme needs of borrowing countries resulting from the COVID-19 pandemic, the 20^th replenishment of IDA replenishment was brought forward one year on an accelerated timeline. Negotiations over this replenishment are ongoing and are scheduled to conclude in a pledging session in December 2021.

Canada also makes periodic commitments to recapitalize the IBRD and IFC. Budget 2021 provided $224 million to fully purchase the shares allocated to Canada by the IFC as part of the 2018 capital increase. Canada is expected to subscribe to these shares by the end of 2021.

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 (EBRD). 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. Previous Ministers of Finance have generally not attended such annual meetings in the past, and has designated 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 2021 Annual Meeting was held virtually on July 1, 2021.

The position of Governor is an automatic appointment upon being sworn in as Minister of Finance. The Alternate Governor is also a position-based appointment, assigned to the Deputy Minister of Foreign Affairs, as agreed to by the Governor in Council on the recommendation of the Minister. Neither appointment has a term limit. The Minister of Finance is also responsible for nominating Canada’s Director on the EBRD Board of Directors, who represents a constituency of countries (Morocco, Jordan and Tunisia). Sarah Fountain Smith was nominated as Canada’s Executive Director, effective September 28, 2020.

Relationship to the Department

The Department of Finance Canada (the Department) coordinates 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 Ms. Sarah Fountain Smith, Canada’s representative on the Board of Directors. Ms. Fountain Smith is one of 23 Directors. In addition to Canada, she represents Morocco, Jordan, and Tunisia, with the four countries forming one constituency at the Board of Directors.

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 EBRD President, Ms. Odile Renaud Basso, was elected at the October 2020 Annual Meeting.

The EBRD’s total authorized capital stands at €30 billion (about C$45 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 since it was established in 1991. The Bank’s operations have expanded to South-Eastern Europe, Central Asia, Turkey, and the Southern and Eastern Mediterranean region, which presents greater operational challenges and financial risks compared to Central and Eastern Europe. The EBRD and its shareholders are now considering a limited and incremental expansion into Sub-Saharan Africa (SSA).

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 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 have opposed EBRD lending to new Russian projects since 2014. Given that Russia was the EBRD’s largest recipient country, this issue was of high significance to the Bank.

At the 2020 Annual Meeting, Governors approved EBRD’s Strategic and Capital Framework (SCF), which defines the high-level strategic orientations for the Bank’s operations over the period 2021 to 2025, and assesses the capital requirements needed to pursue the priorities. In light of the COVID-19 pandemic, the SCF prioritizes preserving and accelerating transition in existing countries of operations, focusing on crisis response and economic recovery. The SCF focuses on three strategic areas: 1) supporting transition to a green low-carbon economy, 2) promoting equal opportunity, and 3) accelerating the digital transition.

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 87 shareholders are 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.

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 the Department

The Department of Finance Canada (the Department) coordinates 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 done through Canada’s participation in the institution’s non-resident Board of Directors.

Canada is part of a constituency composed of countries from the Americas and Africa, which currently includes thirteen countries (Argentina, Algeria, Benin, Canada, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Liberia, Madagascar, Rwanda and Uruguay). Canada’s interests are represented at the twelve-member AIIB Board through a Director that is elected by the Governors of our constituency’s member countries. As per an agreement amongst our constituency members, an Egyptian official currently holds the Director position at the Board. The Assistant Deputy Minister of our International Trade and Finance Branch, who held the Director position from July 2018 to July 2021, has been appointed as Alternate Director for our constituency.

Significance

Established in January 2016 and based in Beijing, the 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 U.K.. The U.S. and Japan have not joined the AIIB.

World Trade Organization

Relationship to Minister

Primary responsibility for Canada’s participation in the World Trade Organisation, including attendance at Ministerial meetings, rests with the minister responsible for international trade. However, the Minister of Finance holds statutory responsibility for Canada’s import policy and financial services. * Sentence redacted *.

Relationship to the Department

The Department plays a lead role in the negotiation and implementation of multilateral trade rules, including tariff commitments and the current negotiations on fisheries subsidies. 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 the organization’s activities, including relevant committees and trade disputes (e.g., softwood lumber).

The Department is represented at the Canadian Mission to the World Trade Organization by a Finance Counsellor appointed by the Department. Departmental officials typically lead in most negotiations and committee meetings.

Significance

The World Trade Organization 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. The organization 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 multilateral agreements are enforced through a binding dispute settlement process.

* Paragraph redacted *.

Canada is actively participating in efforts to reform the organization by leading a group of 13 members (Ottawa Group) looking to address current challenges and developing ideas for reform.

Organisation for Economic Cooperation and Development (OECD)

Relationship to Minister

The OECD holds an annual Ministerial Council Meeting for Finance and Trade Ministers. These events are usually held in the spring of each year at the OECD’s headquarters in Paris, although the COVID-19 pandemic led to some timing and format adjustments in 2020 and 2021. “Part Two” of this year’s Ministerial Council Meeting is set to take place on October 5-6, 2021.

Relationship to the Department

Global Affairs Canada is the lead department for Canada’s participation at the OECD.

However, the Department of Finance Canada leads in certain committees related to economic, financial and fiscal affairs. These include:

• the Economic and Development Review Committee, which conducts peer reviews of member and certain non-member countries’ economies;
• various working parties and committees which examine monetary, fiscal and structural policy issues as well as country forecasts;
• the Committee on Fiscal Affairs, which covers different tax policy and administration issues under its various working parties, and which has a wide membership when meeting in its Inclusive Framework format (described below);
• the Committee on Financial Markets, which focuses on financial developments;
• the Committee on Insurance and Private Pensions and several financial sector working parties covering debt management, financial consumer protection, long-term financing, and financial literacy; and
• the OECD Working Party on Export Credits and Credit Guarantees, and the Participants to the Arrangement on Officially Supported Export Credits, which negotiate rules to foster a level playing field among export credit agencies (such as Export Development Canada) and guidelines on topics such as environmental and social due diligence standards.

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

The OECD’s Economic Survey of Canada, which occurs every 18 to 24 months, is coordinated by the Department of Finance Canada. The most recent Survey was published on March 11, 2021.

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

Significance

The OECD committees in which the Department of Finance Canada 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 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, a body connected with the Committee on Fiscal Affairs, has a broad membership of 140 jurisdictions, which are cooperating to implement standards designed to address aggressive tax avoidance by multinational enterprises, and developing changes to global norms in response to the tax challenges of digitalization, profit shifting and tax competition. 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. The OECD has also contributed to fostering international policy discussions on emerging issues such border carbon adjustments.

* Paragraph redacted *.

OECD export credit rules are intended to foster a level playing field among exporters by disciplining the use of government-backed financing. The rise of non-OECD countries as significant providers of export credits has heightened attention on issues of export credit competitiveness.

Mathias Cormann was appointed as the new Secretary General on June 1, 2021.

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 the Department

The Department of 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 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 2021, New Zealand will host the meeting virtually on October 21. The focus will be on economic recovery from the pandemic.

Relationship to the Department

Canada’s APEC Finance Deputy is the Associate ADM of the International Trade and Finance Branch, who accompanies the Minister or Parliamentary Secretary participating in 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. Canada’s main objective at APEC meetings is to maintain engagement in this dynamic region.

The APEC process is consultative, based on consensus and has a rotating chair. New Zealand is chairing in 2021 and hosting all meetings online due to the pandemic. Thailand will chair in 2022 and has yet to announce whether 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. Prior to the pandemic, topics typically included financial sector integration, fiscal reforms, international tax avoidance, and infrastructure financing. Discussions often centered around spreading certain G20 themes and outcomes to this wider group, capacity building and piloting some regional projects. With the pandemic, the forum has shifted its focus to promoting sound fiscal and monetary policies to combat the negative macroeconomic impact of COVID-19 and support recovery. It is expected that this will integrate the Finance Ministers’ work more closely with that of the broader APEC proceedings in the next few years.

Commonwealth Finance Ministers’ Meeting (CFMM)

Relationship to Minister

Ministers of Finance of all Commonwealth countries are invited annually 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 (Australia, Canada, India, South Africa, and United Kingdom), as well as numerous small islands and African states.

Since 2010, the CFMM has been held on the margins of the International Monetary Fund and the 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 the Department

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

Significance

Discussions at this forum provide an opportunity to consult members and engage in an open dialogue among a diverse group of countries on key economic issues.

The Commonwealth Secretariat is planning to convene a CFMM on October 12, 2021. The proposed theme for the meeting is the post-pandemic recovery in Commonwealth nations. Issues such as debt sustainability, climate vulnerability and global minimum tax will be discussed. The content of the Ministerial statement 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 International Monetary Fund and World Bank’s Annual Meetings.

Relationship to the Department

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

Significance

Discussions at this forum provide an opportunity to consult members and engage in an open dialogue among a diverse group of countries on development-financing issues.

No LFFMM was held in 2019 and 2020 given the COVID-19 restrictions. It is not yet known if a Finance Ministers’ meeting will be planned for 2021.

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 of 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 the Department

Today, Canada’s financial exposure at the Paris Club totals $1.9 billion in loans to 34 developing countries. This debt is owed to the Department of Finance Canada (macro financial assistance loans and guarantees); Global Affairs Canada (official development assistance, export development loans and guarantees); and Export Development Canada (export finance loans).

The Department of Finance Canada 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 476 agreements with 100 different debtor countries. The total debt treated in the framework of Paris Club agreements amounts to US$611 billion. By ensuring that borrower countries can deal with major creditors at once and on the same terms, the Paris Club seeks to minimize the cost, complexity, and inequality of debt treatments.

Recently, the Paris Club has played an integral role in the development and implementation of the G20 Debt Service Suspension Initiative (DSSI), a measure focused on providing temporary liquidity to the world’s poorest countries during the COVID-19 pandemic, * part of sentence redacted *. *Sentence 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 weeklong annual meeting of the APG that will take place in western Canada in 2023.

Relationship to the Department

As policy lead and coordinator for Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime, the Department of Finance Canada 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 the Department

The Department of Finance Canada 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 that 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 announcement at the 2021 G7 Leader’s Summit to double its international climate finance commitment to $5.3 billion over five years to help developing countries mitigate and adapt to the impacts of climate change.

To date, the Coalition comprises 62 members, including all G7 participants and some G20 participants (Argentina, Indonesia and Mexico). The Co-Chairs are Finland and Indonesia.

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 the Department

The Department of Finance Canada 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 Dialogue), along with Canada’s Minister of Small Business, Export Promotion and International Trade and a member of China’s State Council.

Relationship to the Department

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

Significance

Launched in 2017, the Dialogue 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, * part of sentence redacted *. The Dialogue 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.

The first substantive Dialogue, held in Beijing in November 2018, delivered 50 joint outcomes in the fields of macroeconomic coordination, financial services and bilateral trade and investment. * Sentence redacted *.

Federal-Provincial Relations

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

Traditionally, 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. Throughout the COVID-19 pandemic, teleconferences, particularly at the ministerial level, occurred much more frequently.

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 &msash;Territorial Finance Committees

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:

• the economic and fiscal outlook and issues influencing it, including financial market developments, commodity prices, exchange rate developments, debt targets, Budget directions, etc.;
• presentation on global and Canadian economic and financial developments from the Governor of the Bank of Canada;
• tax policy issues;
• transfer issues (e.g., Equalization, Canada Health Transfer and Canada Social Transfer);
• the Canada Pension Plan;
• infrastructure investments; or,
• other issues with federal-provincial implications.

Throughout the COVID-19 pandemic, federal and provincial-territorial Ministers of Finance have met regularly (often biweekly) to work through pandemic-related issues. There have also been (largely) bi-weekly meetings of First Ministers. These contacts are much more frequent than in previous years.

Federal and provincial Ministers of Finance 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

Comprising Assistant Deputy Ministers responsible for fiscal and economic policy, the Committee is chaired by the federal Assistant Deputy Ministers of Economic Policy and Fiscal Policy Branches. 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 supported 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 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:

• financial sector innovation (financial technology, retail payments)
• housing markets
• anti-money laundering, anti-terrorist financing regime and corporate transparency
• consumer protection
• other financial sector issues (trade initiatives, cybersecurity, catastrophic risk/earthquake risk)

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

Expert Panel on the Future of Housing Supply and Affordability

In September 2019, the Governments of Canada and British Columbia launched the Expert Panel on the Future of Housing Supply and Affordability, with a two-year mandate to identify potential measures to increase the supply and affordability of housing in high-priced markets in British Columbia.

In June 2021, the Expert Panel submitted its Final Report to the Ministers of Finance of British Columbia and Canada, which has subsequently been published. The Final Report contains 23 recommendations directed at federal, provincial and municipal governments, which fall under five broad calls to action: (i) creating a planning framework that proactively encourages housing; (ii) reforming fees on property development; (iii) expanding the supply of community and affordable housing; (iv) improving coordination among and within all orders of government; and (v) ensuring more equitable treatment of renters and homeowners.

Federal recommendations focus on making new, longer-term investments in affordable housing, providing incentives to municipalities to boost housing supply, and ensuring a more equitable treatment of renters and homeowners. The Department has reviewed the Final Report, together with CMHC, and continues to rely on its findings to develop forward policy advice on housing supply and affordability issues.

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 Canada, 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:

• Financial sector risks and vulnerabilities
• Financial sector technology (cyber security)
• Emerging asset classes (green assets, crypto assets)
• Market structure (financial benchmarks, securities settlement)
• Market regulation (derivatives, federal and provincial regulations)
• Any other financial sector issues of common interest

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 Responsibilities

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

1. statutes for which the Minister of Finance is named by Parliament or designated by the Governor in Council as the responsible minister or for which there is no named Minister but the Act is otherwise identified as falling under the responsibility of the Minister of Finance (listed in Section A below);
2. statutes for which another minister is named as the responsible minister but for which the Minister of Finance has policy responsibility by virtue of 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 Acts¹ (under various titles)
Canada Deposit Insurance Corporation Act
Canada Pension Plan²
Canada Pension Plan Investment Board Act
Canadian International Trade Tribunal Act
Canadian Gender Budgeting Act³
Canadian Payments Act
Canadian Securities Regulation Regime Transition Office 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 Act⁴
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 Act⁵
Protection of Residential Mortgage or Hypothecary Insurance Act
Retail Payment Activities Act
Royal Canadian Mint Act⁶
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, 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 Act⁷
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)⁸
Halifax Relief Commission Pension Continuation Act
Newfoundland and Labrador Additional Financial Assistance Act
Nordion and Theratronics Divestiture Authorization Act⁹
Oil Export Tax Act
Petro-Canada Public Participation Act¹⁰
Prince Edward Island Subsidy Act
Provincial Subsidies Act
Spending Control Act
Supplementary Fiscal Equalization Payments 1982-1987Act
Teleglobe Canada Reorganization and Divestiture Act¹¹

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 Act¹²

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 Recovery Benefits Act
Canada Revenue Agency Act
Canada Small Business Financing Act
Canada Student Financial Assistance Act
Canada-United Kingdom Trade Continuity Agreement Implementation Act
Canada-United States-Mexico Agreement Implementation 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 Net-Zero Emissions Accountability 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
Multilateral Instruments in Respect of Tax Conventions 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 Select 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.

Bank Act

The Bank Act provides a comprehensive regulatory framework for banks, including federal credit unions, in Canada. The Act regulates the creation of new banks as well as their ownership, corporate governance, capital structure, business activities and investments.

The Act authorizes the Superintendent to intervene if necessary to protect the interests of depositors and creditors of a bank. The Superintendent can take steps for the 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 to support the purpose and provisions of the Act.

Additionally, the Minister has the authority to approve a wide range of transactions, including ownership changes, 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 sunset clause to encourage periodic review of the Act. The sunset date was extended by two years to June 30, 2025 via the Budget Implementation Act, 2021, 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 Canada. In addition, the Act requires that the Minister and the Governor consult regularly on monetary policy with respect to its relation to economic policy. The duties of the Bank are to regulate credit and currency in the best interests of the economic life of the nation; to control and protect the national monetary unit; to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, as far as possible within the scope of monetary actions; and generally to promote the economic and financial welfare of Canada.

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

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

Bills of Exchange Act

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

Borrowing Authority Act

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

Bretton Woods and Related Agreements Act

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

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

In respect of the IMF, the quota allocated to Canada is equal to Canada’s subscription and it determines the amount of Canada’s contribution to the 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 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:

• The base (or original) CPP, which began in 1996 and is partially funded; and
• The CPP enhancement, which began in 2019 and is fully funded. The CPP enhancement acts as a top up to the base CPP.

Responsibilities under the CPP are as follows:

Every three years, federal and provincial Ministers of Finance are required to review the financial state of the CPP and determine if changes to contribution rates and/or benefits are necessary. The “triennial review” process also provides an opportunity for Ministers to examine the overall functioning of the Plan and make changes to modernize or better respond to broader policy objectives. Major changes to the Plan require the approval of the Parliament of Canada and seven out of ten provinces representing at least two-thirds of the population of the ten provinces. The 2019-21 Triennial Review, which reported on the state of the Plan as at December 31, 2019, needs to be concluded by the Minister of Finance by the end of 2021. The following triennial review will report on the state of the Plan as at December 31, 2021, with the actuarial report required to be tabled in Parliament by the end of December 2022.

As part of the triennial review process, the Chief Actuary of Canada prepares a report on the financial state of the Plan in the first year of the review. This report, which is tabled in Parliament by the Minister, launches the triennial review process and provides context for the review of benefits and/or contributions.

The Canada Pension Plan Investment Board (CPPIB) is responsible for the investment of funds not immediately needed to pay for benefits. Directors of CPPIB are appointed by the GiC on the Minister’s recommendation, based on the advice of a nominating committee and consultations with the Minister’s provincial counterparts in participating provinces.

The Minister of Employment and Social Development is responsible for administering benefits.

The Minister of National Revenue is responsible for the collection of contributions.

The Minister of Public Services and Procurement and Accessibility issues payment instructions to CPP clients and provides accommodation and property management services.

The Auditor General of Canada is responsible for auditing the annual financial statements of the CPP.

As of 2020, 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 “default provisions” for the CPP enhancement are set out in regulations and differ somewhat from the base CPP provisions given the full funding requirement.

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. Payments Canada’s by-laws are subject to Ministerial approval and the Minister can also issue directives to Payments Canada, as well as disallow any rule made by its board.

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.

Currency Act

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

• Canadian Currency and Coinage

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

  The Minister of Finance is the minister responsible for the Royal Canadian Mint, which supplies the coinage needs for the Canadian economy. The Mint produces circulating coins under a Memorandum of Understanding with the Department, and distributes the coins to the financial institutions. The Governor in Council approves changes to 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. New bank notes have typically been introduced every 10-15 years to keep up with technology, but this pace is expected to accelerate for future bank note series. Under the Currency Act, the Minister has the authority to call in and remove the legal tender status of bank notes (e.g., on non-current denominations).

• Exchange Fund Account (EFA)

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

  Responsibility for the management of the EFA is jointly shared by the Department of Finance Canada 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.

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

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

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

Customs Tariff

This Act contains a wide range of provisions dealing with the treatment of goods imported into Canada 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.42While 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).

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 imposing duties on cannabis 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.

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

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

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

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

The federal government has TCAs with all provinces and territories, except Quebec for personal and corporate income tax and Alberta for corporate income tax. The 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 are typically in force for five years, after which they are reviewed and/or renewed. 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. Tax administration agreement negotiations are underway with several additional Indigenous governments.

Financial Administration Act (FAA)

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

• Debt Management

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

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

• Crown Corporation Financing

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

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

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

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

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

• Remission Orders

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

Financial Consumer Agency of Canada Act

The Financial Consumer Agency of Canada (FCAC) was established in 2001 pursuant to the Financial Consumer Agency of Canada Act (FCAC Act). The Agency supervises the compliance of federally regulated financial institutions with the consumer provisions in their governing statutes, monitors voluntary codes of conduct adopted by financial institutions, and undertakes consumer education activities.

The Commissioner of the FCAC administers the consumer provisions in the Bank Act, the Trust and Loan Companies Act, and the Insurance Companies Act. The Commissioner reports to the Minister of Finance on all matters relating to the administration of the FCAC Act and of the consumer provisions of the financial institutions statutes.

The FCAC’s mandate also includes strengthening the financial literacy of Canadians. Amendments in 2019 reinforced the FCAC’s financial literacy role by integrating financial literacy into the purpose clause of the FCAC Act.

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

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 support¹³ 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.

Insurance Companies Act

The Insurance Companies Act applies to all insurance companies incorporated under federal law and all foreign insurance companies that do business in Canada on a branch basis.

The Insurance Companies Act provides a comprehensive regulatory framework for federally incorporated insurance companies. The Act regulates the creation of new companies as well as their ownership, corporate governance, capital structure, business activities and investments. The general provisions of the Act largely mirror those of the Bank Act and Trust and Loan Companies Act with specific provisions for mutualization and demutualization, the governance rights of 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 insurance, is a provincial responsibility even when a company is federally incorporated.

The Act authorizes the Superintendent of Financial Institutions 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. The Superintendent can take steps for the liquidation of an insurance company unless the Minister is of the view that it is not in the public interest.

The Minister is given a wide variety of powers, duties and functions. The Minister is authorized to recommend to the Governor in Council regulations to support the purpose and provisions of the Act.

Additionally, the Minister has the authority to approve a wide range of transactions, including ownership changes, investments and the establishment of Canadian insurance companies as well as foreign insurance companies’ branches in Canada.

The Act includes a sunset clause to encourage a periodic review of the Act. The sunset date was extended by two years to June 30, 2025 via the Budget Implementation Act, 2021, No. 1.

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 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 Clearing and Settlement Act

Under Part 1 of this Act, the Bank of Canada has responsibility to oversee clearing and settlement systems. The Governor of the Bank of Canada can designate a clearing and settlement system in Canada if it poses systemic risk or risk to the Canadian payment system. For the designation to occur, the Minister of Finance must determine it 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 of Finance 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.

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 Canada 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 have been made through Budget Implementation Acts to strengthen 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.

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), as well as domestic initiatives.

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 Department concluded public consultations on further legislative and regulatory amendments under the Act to strengthen and improve access to Canada’s trade remedy system on September 26, 2021.

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.

Trust and Loan Companies Act

The Trust and Loan Companies Act applies to all trust and loan companies incorporated under federal law.

The Act provides a comprehensive regulatory framework for federally incorporated trust and loan companies. The Act regulates the creation of new companies as well as their ownership, corporate governance, capital structure, business activities and investments. The general provisions of the Act largely mirror those of the Bank Act and Insurance Companies Act. The key differences between banks and trust and loan companies are that companies may provide trustee services, face greater restrictions on their commercial lending activities and are not subject to certain ownership rules.

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

The Act authorizes the Superintendent to intervene if necessary to protect the interests of depositors and creditors of a company. The Superintendent can take steps for the liquidation of a 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. The Minister is authorized to recommend to the Governor in Council regulations to support the purpose and provisions of the Act.

Additionally, the Minister has the authority to approve a wide range of transactions, including ownership changes, investments, and the establishment of new companies.

The Act includes a sunset clause that encourages a periodic review of the Act. The sunset date was extended by two years to June 30, 2025 via the Budget Implementation Act, 2021, No. 1.

Economic Policy Branch

Overview of the Branch

Assistant Deputy Minister: Rhys Mendes

• Director General, Economic Analysis and Forecasting Division: Julie Turcotte
  • Senior Director: Brian Torgunrud
  • Senior Director: Matt Emde
  • Director: Frank Lee
  • Director: Charles Perreault
• Director General, Economic Studies and Policy Analysis Division: Claude Lavoie
  • Senior Director: Nelson Paterson
  • Director: Dominique Tremblay
  • Director: Hankook Kim
  • A/Director: Kari Wolanski
  • A/Director: Alexander Armstrong

Economic Analysis and Forecasting Division

• Current analysis and forecasts of the Canadian economy
• Monitoring and forecasts of the United States
• Macroeconomic modelling
• Drafting the economic sections of the Fall Update and Budget

Demand and Labour:

Monitors and analyzes Canadian economic situation and risks related to households, businesses, labour markets and housing markets.

Economic and Financial Policy Analysis:

Monitor and analyzes international trade, commodity and inflation developments; track and assess provincial economic situations, coordinate annual International Monetary Fund assessment of Canada.

Canadian Forecasting:

Conduct private surveys, undertake short-term (monitoring), medium-term and long-term forecasts and risk scenario analysis, and prepare associated analysis and briefings

United States Economic Analysis and Forecasting:

Monitors and analyzes economic, fiscal, monetary and other policy developments in the United States and key peer countries, conducts quarterly forecasts for United States economy and risk scenario analysis

Modeling Development:

Maintenance and improvement of the Department’s macro model (CEFM), and technical projects in areas related to real GDP growth outlook, housing, and employment.

Economic Studies and Policy Analysis Division

• Conduct applied economic research to inform policies
  • Analysis of structural and medium term issues
  • Assess policy options / evaluate medium-term challenges using economic models (including general equilibrium) and data analytics
• Long-term fiscal forecast
• Consulting role
• Coordination / drafting of special documents

Structural policy analysis:

Develop and manage evidence-based analysis on issues related to labour market, income support programs, training programs, inequality, poverty and other socio-economic issues. The Structural Policy Analysis was also recently responsible to help developing the Government medium-term agenda of incorporating quality of life measurements into the decision and budget process and play a secretariat role for various consultative committees.

Fiscal Policy analysis:

Produce the annual long-term economic and fiscal forecast. Analyze federal and provincial economic long-term economic and fiscal prospects and risks, including determining potential fiscal anchor. Develop and manage evidence-based analysis on issues related to fiscal policy and long-term economic and fiscal risks. The section was also responsible to help with the analysis of the potential options for a national Pharmacare program.

Policy Analysis:

Develop and manage evidence-based analysis on issues related to productivity, economic growth, innovation, business support and taxation. Contribute to the development of state-of-the art models to analyze policy proposals and ensure the department stays at the frontier in terms of modelling. The section was also responsible recently to analyze the stimulus value of the budget measures.

Macroeconomic Policy Analysis:

Develop and manage evidence-based analysis on issues related to global economic trends, financial markets, counter-cyclical policies, macro-prudential policies, climate change policies, and monetary policy framework. The section has been recently responsible in helping developing proposals for insurance disaster policies. This section is also responsible, with the policy analysis section, for the development of state-of-the art models to analyze policy proposals and ensure the department stays at the modelling frontier.

Coordination Policy:

This section has mostly been involved recently in introducing Quality-of-Life considerations into the decision-making process and developing the Quality-of-Life Framework that was introduced in the Budget. Going forward, this section will also coordinate and disseminate analytical work across the government departments to ensure that policy proposals reflect holistic and whole-of-government views.

Fiscal Policy Branch

Overview of the Branch

Assistant Deputy Minister: Evelyn Dancey

• Director General: Brad Recker
• Senior Director, Budget Policy and Analysis: Thomas Larouche
• Director, Financial Analysis and Reporting: Cheryl McMullin
• Director, Revenue Analysis and Forecasting: Siyam Rafique
• Director, Expenditure Analysis and Forecasting: Nicholas Phillips

Who We Are

• 26 team members, including economists, accountants, analysts and coordinators
• Provide advice on fiscal, budget, expenditure management and accounting policies
• Prepare the detailed fiscal projections that are included in annual fall updates and budgets
• Oversee the preparation and publication of fall updates and budgets
• Prepare the monthly Fiscal Monitor, and the Government of Canada’s Annual Financial Report
• Provide funding and policy advice regarding key operational departments and central agencies

What We Do

• Budget Policy and Analysis: tracks funding decisions and pressures and coordinates the budget, GBA+, fall update and off-cycle processes. Provides budget strategy and policy advice.
• Financial Analysis and Reporting: Monitors and forecasts federal financial requirements, provides accounting advice to the department, produces the Fiscal Monitor, Annual Financial Report and the Fiscal Reference Tables. Undertakes TBS challenge function.
• Revenue Analysis and Forecasting: Monitors and forecasts all federal revenue streams, the Employment Insurance account, and provides Canada Revenue Agency challenge function. Advises on user fee policy.
• Expenditure Analysis and Forecasting: Monitors and forecasts all federal expenditures and expenses and undertakes Public Services and Procurement Canada, Shared Services Canada and Privy Council Office challenge functions. Provides expenditure management strategy and policy advice.

Tax Policy Branch

Overview of the Branch

Assistant Deputy Minister: Miodrag Jovanovic

• Senior Advisor: James Greene
• Associate Assistant Deputy Minister, Tax Legislation: Shawn Porter
• Associate Assistant Deputy Minister, Analysis: Maude Lavoie
• Director General, Personal Income Tax: Pierre LeBlanc
• Director General, Sales Tax: Phil King
• Director General, Sales Tax: Kevin Shoom / Jenna Robins
• Director General, Tax Legislation: Trevor McGowan
• Director General, Intergovernmental Tax Policy, Evaluation & Research: Michelle Adkins

Who We Are

About 170 current employees playing diverse roles such as policy analysts (economists), research analysts, legislative drafters (lawyers), and negotiators (modern treaties with Indigenous groups).

Organized along five divisions, which liaise with Finance Legal Services. Divisions oversee policy in areas such as:

• Personal Income Tax, which includes benefits delivered through the tax system (e.g., CCB, CWB, etc.)
• Corporate Income Tax, which includes incentives for innovation, economic development, and environment, etc.
• Goods and Services Tax / Harmonized Sales Tax (GST/HST)
• Excise Taxes on alcohol, tobacco, fuel, and cannabis, as well as carbon pricing

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.

• To generate sufficient revenue to finance government programs and priorities, the tax system has to work well and be:
  • Efficient — Foster competitiveness, productivity and higher living standards;
  • Fair — Share the tax burden fairly, and help meet the government’s social priorities; and
  • Simple — Be administered for and understood by Canadians (important for a 'self-assessment’ system).

Tax Policy Development Process

Identify potential measures/issues:

• Review Ministerial requests, internal analysis, court rulings, issues identified by the Canada Revenue Agency in the course of its administration of our tax statutes, correspondence, Parliamentary initiatives, independent research, and consultations.

Assess and advise:

• Conduct research and analysis, consult internally and externally, develop specific options, and make recommendations to the Minister – keeping in mind the following analytical considerations:
  • Consistency with tax policy principles, e.g., efficiency and effectiveness, consistency with other government priorities, distributional, environmental and revenue impacts, federal-provincial, Crown-Indigenous and international considerations, stakeholder reactions, GBA+, and administrative / compliance issues.

Implement:

• Prepare budget text and/or news release; draft legislation and regulations; ministerial speeches; responsive lines; and work with our partners (e.g., Canada Revenue Agency and Canada Border Services Agency).

Examples of Tax Policy Branch Issues

Outstanding Income Tax Amendments

• A number of proposed income tax amendments have been released and not yet enacted, including amendments for measures announced in prior Budgets. Discussions will take place on the possible approaches for dealing with these proposed amendments.

Sales Tax and Excise Duty Agreements

• Ongoing management of the Comprehensive Integrated Tax Coordination Agreements (sales tax) and the Coordinated Cannabis Taxation Agreements (excise duty) with provinces and territories.

Digitalization and Taxation

• Digitalization has led to new types of digital products and services and new ways of doing business. The Organization for Economic Co-operation and Development is coordinating multilateral negotiations on revised standards for corporate income tax to respond to digitalization and globalization.

Indigenous Tax Policy Development and Negotiations

• Develop and advance new policies and tax jurisdiction arrangements to support advancement of the fiscal relationship with Indigenous communities, and recommend policy mandates related to the negotiation of tax matters in reconciliation agreements and comprehensive land claim and self-government agreements.

Carbon Pollution Pricing and the Environment

• Responsible for the fuel charge component of the federal carbon pollution pricing system and the return of fuel charge proceeds to households through Climate Action Incentive payments.

Role in COVID-19 Response

• Ongoing management of wage and rent subsidy programs and other supports.

Federal-Provincial Relations and Social Policy Branch

Overview of the Branch

Senior Assistant Deputy Minister: Michelle Kovacevic

• Assistant Deputy Minister: Alison McDermott
• Federal-Provincial Relations Division, Director General: Galen Countryman
• Director General, Social Policy Division : Omar Rajabali
• Director General, Justice, Security and Indigenous Policy Division : Kate Rafter

Who We Are

The branch supports the Minister of Finance through the following:

• Administration and oversight of major transfers to provinces and territories (i.e., Canada Health Transfer, Canada Social Transfer, Equalization, and Territorial Formula Financing) and direct transfers to Canadians (e.g., Canada Pension Plan)
• Analysis and advice on funding proposals (e.g., Budget) for social policy initiatives related to: health; labour; income security; veterans; immigration; housing; Indigenous policy; the North; justice and security; diversity and inclusion; and culture.
• Coordinates and provides policy analysis & advice for bilateral and multilateral relations with provinces, territories and Indigenous governments, including Finance Ministers’ Meetings.
• Analysis and policy development on key social policy priorities for the federal budget. As part of its analysis the Branch reviews expenditures for the departments under its responsibility, representing $157.5 billion in authorities for 2021-22.

Transfers to Provinces and Territories

Oversight of the four major transfer programs in Canada: the Canada Health Transfer (CHT), the Canada Social Transfer (CST), Equalization and Territorial Formula Financing (TFF), totaling $83.9 billion in 2021-22

Outside the 4 major transfers, the Department of Finance Canada also administers the Fiscal Stabilization Program (projected $3.0 billion for 2020-21) which provides support to provinces facing extraordinary economic downturns.

Transfers Directly to Canadians

• The Canada Pension Plan (CPP) provides a “defined benefit” in retirement based on an individual’s contributory history.
• Federal and provincial Ministers of Finance, as co-stewards, review the financial sustainability of the plan every three years and determine if changes to contribution rates and/or benefits are necessary
• Responsibility for different parts of the CPP is shared among a number of departments and agencies
• The Department of Finance Canada — triennial review process, contribution and benefit levels, and the tax treatment of CPP contributions and benefits
• Employment and Social Development Canada — program oversight, benefits policy and benefits delivery
  • Canada Revenue Agency — administers the collection of CPP contributions
  • Canada Pension Plan Investment Board — manages and invests CPP assets
• The CPP is financed entirely through employer and employee contributions and their associated investment returns. As a result, CPP accounting transactions are not part of the balance sheets of federal or provincial governments.

CPP Facts

• Total CPP contributions (2018): $51.2B
• Number of contributors (2018): 15.7M
• Total CPP benefits (2018): $46.5B
• Number of beneficiaries (2018): 5.9M
• Operating expenses (2018): $1.8B
• Current assets (CPPIB – June 2021): $519.6B

The branch also provides policy and funding advice to the Minister on direct transfer programs to Canadians that are administered by other government departments:

Policy and Funding Advice

The Branch supports policy and funding advice in the following areas:

• Health (public health and pandemic response, mental health, substance use, long-term care)
• Labour markets (Employment Insurance, student financial assistance, skills training programs)
• Immigration (temporary foreign workers, immigration levels and processing)
• Indigenous policy (advancing reconciliation, social and community services and programs, economic development, rights-based negotiation and implementation, and litigation)
• Income Security (benefit delivery, Canada Pension Plan, Old Age Security and Guaranteed Income Supplement, veterans, disability issues)
• Justice and Security (crime prevention, borders, RCMP, corrections, emergency preparedness, national and cyber security)
• Housing (National Housing Strategy, homelessness)
• Culture (arts, broadcasting, sports, official languages, national museums)

Managing Through the Pandemic

Federal Response to Covid-19

The Branch had a pivotal role in the roll-out of health, community and income supports.

Income Supports

• Development and evolution of income supports including the Canada Emergency Response Benefit, Canada Emergency Student Benefit, and the Canada Recovery Benefits including the caregiving and sickness benefits.

Transfers to Provinces and Territories

• Essential Worker Wage Top-Up (up to $3 billion)
• Big Lift vaccine funding ($1 billion)
• Canada Health Transfer top-up ($4 billion)
• Safe Restart funding (over $19 billion)
• Safe Return to Class fund (up to $2 billion)

Supporting Indigenous Communities

• Safe Restart on Reserve
• Supports for Indigenous business
• Healthcare on-reserve

Ensuring community resilience

• Funding for cultural organizations and workers, including arts, sports and museums
• Non-profit organization support

Protecting Canadians

• Border management
• Quarantine facilities and testing of travellers

Public Health Response

• Procurement of vaccines, personal protective equipment and other essential medical counter measures
• Safe long-term care

Decisions in the Short Term

• Pandemic Response benefit extension — The current suite of Canada Response Benefits are set to expire on October 23rd, 2021.
• Canadian Human Rights Tribunal order — The Canadian Human Rights Tribunal issued an order for Indigenous Services Canada to pay the costs submitted by First Nations-led delegated child welfare agencies for capital costs. A decision to pay (approximately $1 billion) or seek a judicial review is required by September 27, 2021.
• Immigration Levels Plan 2022-2024 — The Government has a statutory obligation to table the annual levels plan by November 1st each year, or within 60 days of forming government.
• Canada Pension Plan Triennial review — By December 31, 2021, federal and provincial Ministers of Finance, as co-stewards of the Canada Pension Plan , are required to review the financial state of the Plan and determine if changes to contribution rates and/or benefits are necessary.
• Finance Ministers Meeting December 2021 — Traditionally a meeting takes place in December.
• December Major Transfer amounts for provinces and territories — Need to be authorized by the Minister.

Annex 1: Client Department

• Administrative Tribunals Support Services of Canada
• Canada Border Services Agency
• Canada Housing and Mortgage Corporation (on National Housing Strategy)
• Canadian Heritage
• CBC/Radio-Canada
• Canadian Radio-Television and Telecommunications Commission
• Canadian Security Intelligence Service
• Communications Security Establishment
• Correctional Service Canada
• Courts Administration Service
• Crown-Indigenous Relations and Northern Affairs
• Department of Justice Canada
• Employment and Social Development Canada
• Federal Courts
• Federal museums and galleries
• Health Canada
• Immigration, Refugees and Citizenship Canada
• Indigenous Services Canada
• Labour Program
• Library and Archives Canada
• National Capital Commission
• National Film Board and Telefilm Canada
• Public Health Agency of Canada
• Public Prosecution Service of Canada
• Public Safety Canada
• Privacy Commissioner of Canada
• Royal Canadian Mounted Police
• Service Canada (on benefit delivery)
• Veterans Affairs Canada
• Women and Gender Equality

Economic Development Branch

Overview of the Branch

Assistant Deputy Minister: Glenn Purves

• Associate Assistant Deputy Minister: Samuel Millar
• Director General, Sectoral Policy: Tasha Hanes
• Director General, Microeconomic Policy: Greg Reade
• Director General, Resource Policy: Vacant

Who We Are

Economic Development Branch is comprised of approximately 60 professionals: economists, policy analysts, support staff and managers

Sector Policy includes:

• Transport Canada and portfolio
• Infrastructure Canada and portfolio (e.g., Canada Infrastructure Bank)
• Department of National Defence and portfolio
• Canada Post

Microeconomic Policy includes:

• Innovation, Science and Economic Development Canada and portfolio (e.g., regional development agencies, StatsCan)
• Dept of Fisheries & Oceans
• Canadian Coast Guard
• Agriculture & Agrifood Canada and portfolio

Resource Policy includes:

• Environment and Climate Change Canada and portfolio (e.g., Parks Canada)
• Natural Resources Canada and portfolio (e.g., Canada Energy Regulator)
• Trans Mountain Corp.

What We Do

1. Economic Development Branch provides fiscal policy advice to the Minister of Finance on funding requests (e.g., Budget) by economic Ministers and their departments (see next slide for detail) as well as certain multi-department programs (e.g., federal contaminated sites)
   • As part of its analysis, Economic Development Branch oversees and provides advice relating to expenditures for the departments and agencies under its responsibility, which totalled $58.16 billion in 2021-22.
2. Economic Development Branch provides policy advice to the Minister of Finance (and Associate Minister of Finance) in relation to Cabinet proposals from economic Ministers, including by playing a “challenge” function during the development of those proposals
3. Economic Development Branch supports the Minister of Finance in exercising statutory oversight of certain Crown corporations: Canada Infrastructure Bank, Business Development Bank of Canada, Trans Mountain Corporation^*, Canada Post
4. Economic Development Branch develops policy proposals in areas that are key to Canada’s economy such as: innovation; intellectual property; climate action; regional development; infrastructure; transportation; housing.
5. Economic Development Branch administers certain specific responsibilities on behalf of the Minister of Finance such as: divestment of Trans Mountain Corporation, including Indigenous participation; certain funding agreements with provinces (e.g., orphan wells); annual climate risk/opportunity report.

Economic Development Branch Near-Term Policy Development Priorities

• Housing policy
• Innovation and intellectual property
• Sectors that are highly affected by Covid
• Investment in industrial decarbonisation (e.g., net-zero accelerator)
• Mandate for divestment of Trans Mountain Corporation, including Indigenous participation
• Military procurement * part of bullet redacted *
• Parks Canada capital asset plan
• * Bullet redacted *

Crown Investment and Asset Management Branch

Assistant Deputy Minister: Kent Howie

Who We Are

• A new branch (formed in summer 2021) to provide corporate finance and strategic advice to the Minister of Finance to improve outcomes when:
  1. the government is proposing to become an investor in a commercial entity or project; and
  2. the government is post-acquisition managing and making decisions in respect of such investments
• Small and flexible team with both private and public sector experience – corporate finance, legal, economics and public administration
• Currently a team of 7. Objective is to build a team of 10-12, including corporate finance executives from the private sector who will join on time-limited interchanges

What We Do

• Advise on the structuring, negotiation and completion of major commercial investments or divestitures — with the help of external expert corporate finance, legal and technical advisers. Investments may be made in corporate distress situations or for strategic reasons.
  • Examples of recent large government investments in which the Department of Finance has played a key role include the Trans Mountain Pipeline, Telesat Canada, and loans to Air Canada and other large companies during the COVID-19 pandemic
• Advise on significant issues that arise post-acquisition to ensure the good governance and management of the government investments
• Available to provide input on other large complex negotiations with the private sector where there is an overlap between the public and private sectors and the government can benefit from the private sector legal/corporate finance expertise within the branch
• Responsible for the Canada Development Investment Corporation, a Crown corporation with a mandate to advise on and manage government commercial assets and that reports to Parliament through the Minister of Finance

Near-term CIAM Priorities

• Focus on recruitment of 2-3 corporate finance executives from the private sector on time-limited interchanges — organize and build up the branch
• Research and analysis into the landscape of current government investments and their management, and the future role of government as investor. How can the government invest better and manage its investments intelligently to maximize value (both monetary and social value) for taxpayers
• Continue to oversee and manage the relationship with Canada Development Investment Corporation * part of bullet redacted *
• Support the government in its commercial investment and divestiture transactions as they arise

Financial Sector Policy Branch

Overview of the Branch

Assistant Deputy Minister: Isabelle Jacques

• Associate Assistant Deputy Minister: Soren Halverson
• Director General, Financial Stability and Capital Markets Division: Robert Sample
• Director General, Financial Crime and Security Division: Julien Brazeau
• Director General, Financial Services Division: Erin O’Brien
• Director General, Financial Institutions Division: Richard Bilodeau
• Director General, Funds Management Division: Nicolas Moreau

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

• Minister of Finance is the steward of Canada’s financial system
  • Financial sector operates under shared federal and provincial jurisdiction (see next slide)
  • Federal government has exclusive jurisdiction over banks; other types of federally regulated financial institutions; currency and payments systems; and other targeted areas (e.g., federally regulated pensions, anti-money laundering and anti-terrorist financing framework)
• Minister of Finance is responsible for the overall management of the financial affairs of the Government of Canada, including overseeing the Government’s treasury function to support fiscal policies and the borrowing and other financial activities of Crown corporations

Federal and Provincial Governments Each Have Responsibilities over Financial Sector Regulation

Some important examples include:

• Each are responsible for prudential regulation (safety and soundness) of insurance companies and deposit-taking institutions incorporated in their respective jurisdictions.
• Investor protection in capital markets (including regulating market conduct^** of issuers, dealers, advisors, marketplaces) is a provincial responsibility. However, the federal government has jurisdiction to regulate capital markets in terms of systemic risk.
• Private pension plans are regulated according to whether the sponsoring employer is federally or provincially regulated.
• The federal government is responsible for the consumer provisions of federal statues relating to financial services; while provinces are responsible for financial consumer protection matters related to unregulated and provincially regulated entities.

Role of the Branch

• The Financial Sector Policy Branch advises the Minister on:
  • Canada’s financial sector and the regulation of federal financial institutions
  • Issues related to the financial sector policy framework
  • Issues related to domestic and international financial stability
  • Effective management of the Government’s financial assets and liabilities
• This advice is:
  • Guided by four overarching principles — stability, integrity, efficiency, utility
  • Informed by agencies under the Minister’s purview:
    • Office of the Superintendent of Financial Institutions
    • Canada Deposit Insurance Corporation
    • Bank of Canada
    • Financial Consumer Agency of Canada
    • Financial Transactions and Reports Analysis Centre of Canada

The Five Corners of Financial Sector Policy Branch

Financial Institutions

• Trade Relations
• Framework Policy
• Competition and Strategic Initiatives

Financial Crimes and Security

• Pensions Policy
• Financial Crimes Policy
• Financial Crimes Governance
  and Operations

Financial Stability and Capital Markets

• Financial Sector Analysis
• Markets & Securities
• Financial Stability
• Housing Finance

Funds Management

• Debt Management
• Reserves Management
• Crown Corporations and Currency

Financial Services

• Financial Services Innovation
• Consumer Affairs
• Payments Policy
• Financial Programs and Strategy

Current Policy Priorities and Activities — Stability and Integrity

Priority 1 — Stability

• Reviewing and strengthening housing finance framework
• * Bullet redacted *
• Enhancing systemic risk oversight and resolution
• Safeguarding pension plan sustainability and retirement security
• Developing policy options on disaster insurance
• Managing ongoing COVID-19 programs, including the Canada Emergency Business Account, the Business Credit Availability Program, and the Canada Emergency Commercial Rent Assistance
• Conducting prudent debt and reserves management
• Finalizing the regulatory framework for investment in infrastructure by life insurance companies
• Supporting the Sustainable Finance Action Council
• Developing Canada’s green bond program

Priority 2 — Integrity

• Taking further measures to tackle financial crime
• Identifying and responding to national security risk
• Developing policy options related to crypto currencies, including central bank digital currency and stable coins
• Deepening work to bolster cyber resiliency of financial sector
• Updating corporate governance legislation for financial institutions

Current Policy Priorities and Activities — Innovation, Competition and Improving Consumer Outcomes

Priority 3 — Innovation and Competition

• Advancing modernization of Canada’s payments systems
• Implementing Open Banking
• Planning for the next financial sector legislative review
• Advancing financial services trade while safeguarding regulatory framework
• Finalizing the regulatory framework to enhance financial institution/fintech collaboration

Priority 4 — Improving Consumer Outcomes

• Developing policies to promote competition in financial services markets, to foster innovation and promote better consumer outcomes
• Addressing cost of credit card acceptance
• Implementing the new Financial Consumer Protection Framework

International Trade & Finance

Overview of the Branch

Assistant Deputy Minister: Katharine Rechico

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

Our Landscape

• Canada is an open, rules-based trading nation
• Canada is a respected player on the global economic stage
• Canada is a member of several key global trade, economic and financial forums, where we play an active role
• Canada has substantial ownership positions in international financial institutions
• Canada is a significant provider of international development assistance

International Policy & Analysis

• Coordination of Department of Finance Canada’s participation in key multilateral fora (G7, G20, OECD, Five Eyes, WEF, etc.), including provision of strategic advice for the Prime Minister, Minister of Finance, and senior officials
• Support international bilateral relations (e.g., economic and financial dialogues, bilateral meetings, visits, etc.)
• Support the Minister as Governor of the International Monetary Fund (IMF) and provide advice to Canada’s IMF Executive Director on ongoing IMF operations
• Monitor global economic and policy developments and provide analysis and assessment of emerging trends and risks
• Lead international engagement strategy on well-being/quality of life

International Finance & Development

• Work with Global Affairs Canada (GAC) on the management of the approximately $7 billion in annual spending under Canada’s International Assistance Envelope
• Support the Minister of Finance as Governor of the World Bank Group, European Bank for Reconstruction & Development, Asian Infrastructure Investment Bank, and provide advice on systemic multilateral development bank issues
• Represent and advance Canada’s interests in international negotiations on sovereign debt (Paris Club) and rules to guide the use of government-backed export financing (Organization for Economic Cooperation and Development Arrangement on Export Credits)
• Engage on policy issues and provide a challenge function for international development and trade-related Crown corporations (FinDev, Export Development Canada, Canadian Commercial Corporation)

International Trade Policy

• Manage import policy and legislation
  • Customs Tariff – about $5B in annual revenue ($5.5B in 2019/$4.6B in 2020)
  • Special Import Measures Act
  • Canadian International Trade Tribunal
  • Duty remission requests
• Free Trade Agreements — lead or co-lead on elements of negotiations and in implementation into domestic law (under overall GAC lead)
• Trade disputes — centrally involved in government response (e.g. steel and aluminum)
• Border carbon adjustments — lead policy development and engagement
• Challenge function — on Global Affairs Canada foreign affairs & trade issues
• APEC — coordinate participation in Finance Ministers’ track

COVID-Related Priorities

Policy & analysis

• Analyzing the impact of the pandemic and economic support/recovery measures on global economic activity and future prospects
• Monitoring economic measures across countries to support economies and promote recovery
• Tracking and analysing reopening of global economy; assessment of global outlook
• Ensuring the IMF is meeting the needs of vulnerable countries and maintaining global economic stability

Finance & development

• Advising on and facilitating Export Development Canada’s supports to Canadian businesses, including the Canada Emergency Business Account
• Working with Global Affairs Canada to address international assistance priorities
• Providing policy advice on debt relief, sustainability and transparency initiatives as well as financing for development with G7, G20, OECD and the UN.
• Leading debt relief negotiations

Trade policy

• Implementing COVID-related tariff relief (medical goods, deferral of payments)
• Analyzing supply chain disruptions and advising on policies to increase resilience
• Tracking impact of COVID on trade and borders
• Advising on trade policy options for COVID recovery phase

Other Current Priorities

Policy & analysis

• Monitoring and assessment of major international economic developments on the global economic outlook — e.g. capital flows, inflation
• Working with likeminded countries on IMF policies and championing the interests of the Caribbean and other small developing states.
• Understanding Canada’s place in the changing world order.
• Transition of G20 and G7 Presidencies.

Finance & development

• Advancing discussions on the long-term size and priorities for Canada’s International Assistance Envelope (e.g. climate finance, innovative finance, Middle East Strategy, etc).
• Promoting more efficient use of capital in Multilateral Development Banks to unlock additional financing for countries in need
• Completing formal review of EDC to strengthen alignment with Government priorities

Trade policy

• Reacting to challenging trade environment (e.g., World Trade Organization challenges, U.S. and broader protectionism)
• Coordinating policy development on Border Carbon Adjustments
• Strengthening trade remedy system (including union participation and improving SME access)

Consultations & Communications Branch

Overview of the Branch

Assistant Deputy Minister: Sarah Lawley

• Director General: Marie-Elise Rancourt
• Senior Director, Communication Strategy: Kate Binnie
• Senior Director, Public Affairs & Operations: Akim Thibouthot
• Director, Access To Information & Privacy: Josh Keon
• A/Director, Parliamentary Affairs: Frank Harvey
• Director, Public Engagement And Strategic Management Services: Luke Jones
• A/Director, Strategic Communications Services: Marie-Eve St. Hilaire
• Director, Public Affairs & Operations: Julie Lavallée

What We Do

The Consultations and Communications Branch provides a full suite of public affairs services to the Department. This includes: communications plans and products; public consultations; public opinion research; public correspondence; advertising; media relations & monitoring; ministerial events; parliamentary affairs; access to information and privacy (ATIP); web and print publishing; social media channels; linguistic services; as well as the production and tabling of the Economic Fiscal Update and the Budget.

All communications comply with 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 guidelines on web accessibility.

Assistant Deputy Minister’s Office

The Assistant Deputy Minister is responsible for the overall strategic leadership of the branch as well as the direction of the department’s communications.

The Assistant Deputy Minister Office’s responsibilities include:

• Overall branch management and strategic direction.
• Branch representation at various departmental and government-wide committees.
• Maintaining relations with the Privy Council Office, Ministers’ Offices, Deputy Minister’s Office and other branches.

Director General’s Office

In support of the Assistant Deputy Minister, the DG leads the day-to-day operations of the Branch, plays a central role in maintaining key departmental and interdepartmental relationships, and oversees the following three groups.

Access to Information and Privacy

Administers the Access to Information Act and the Privacy Act for the Department.

Coordinates the processing of requests under the legislation, conducts interdepartmental consultations, handles complaints lodged with the Information Commissioner, and responds to informal inquiries.

Provides guidance to departmental officials on matters involving the Acts.

Parliamentary Affairs

Manages the legislative process for all Finance bills, coordinates responses to Parliamentary Returns and manages Parliamentary committee appearances.

Manages and coordinates updates of QP cards.

Coordinates Governor-in-Council Appointments within the Finance Portfolio.

Public Engagement and Strategic Management Services

Plans, delivers and provides advice on public opinion research activities for the department.

Supports public and stakeholder consultation activities conducted by the department.

Leads Branch corporate planning and reporting functions for human resources and financial management.

Communications Strategy Division

Strategy

Prepares and coordinates the approval of communications products, including strategies, news releases, backgrounders, Q&As, key messages, ministerial and legislative debate speeches.

Provides strategic communications advice on specific issues as part of the policy-making process and communications assessments.

Coordinates closely with Privy Council Office on events and announcements.

Media Relations and Monitoring

Manages media inquiries and coordinates the development of responses and background briefings.

Provides on-site media relations support for events and announcements, such as Budget, Fall Economic Statement, and technical briefings.

Provides morning news clippings, breaking news, media metrics and analysis.

Departmental Correspondence

Processes correspondence directed to the Minister, as well as managing and responding to calls to the Department’s public enquiries telephone line and mail.

Receives, analyzes and tracks all ministerial correspondence, determines the appropriate action for each file, and drafts and edits replies for departmental and ministerial signature.

Public Affairs Operations Division

Events and Internal Communications

Plans ministerial and departmental events, including the overall coordination with key stakeholders and suppliers.

Leads the development and implementation of multi-location event plans for secure lock-ups for the Budget, the Fall Economic Statement, the pre-budget consultations and any ministerial tours.

Leads corporate communications activities for the department.

Publishing & Web

Analyzes, designs, develops, tests and maintains all internal and external facing department websites, including fin.gc.ca, budget.canada.ca and InfoSite (internal to the Department).

Supports the production of all departmental reports, including the annual Budget.

Language Services

Provides linguistic advice, translates and revises communications-related products, including the Budget and the Fall Economic Statement, and all Ministerial and departmental announcements.

Creative Services and Social Media

Develops all creative concepts, designs and products for the department’s communications, including social media shareables, videos and report covers.

Manages and maintains the department’s social media presence, including developing social media strategies, content and providing analytics on key announcements and initiatives.

Advertising & Marketing

Leads the development, planning and implementation of advertising, social marketing, public education, and partnership for specific departmental programs and governmental initiatives.

Annex: Schedule of Publications and Tablings

Monthly

• Fiscal Monitor
• Official International Reserves
• List of briefing notes prepared for the Deputy Minister and the Minister(s)
• Travel and hospitality proactive disclosures

Quarterly

• Departmental financial reporting

Annually

• Annual Financial Results
• Economic and Fiscal Update
• Federal Budget
• Annual Reports for the Department and reporting agencies, including Access to Information and Privacy Annual Reports

Law Branch

Overview of the Branch

A/Assistant Deputy Minister & Counsel to the Department of Finance: Jenifer Aitken

• A/Senior General Counsel & Executive Director, Finance Legal Services: Robert Wong
• A/General Counsel & Executive Director, Finance Legal Services: Thomas Boucher
• Director, Values and Ethics and Protection Disclosure Officer: Gregory Gauthier

The Law Branch manages and administers legal services to the Department of Finance.

In addition to providing legislative services, counsel in the Law Branch also provide advice in the areas of law relevant to the department, including:

• financial institutions;
• federal financial transfers to the provinces and territories;
• tax policy;
• trade issues, securities and capital markets regulation;
• financial administration and Crown corporations; and
• the development and implementation of the federal budget.

The Branch also instructs on and monitors major litigation of concern to the Department, including litigation with potential significant fiscal implications.

Financial Legal Services

Our principal responsibilities include:

• Provision of legal and policy advice on all matters of concern to the Department, including the development and implementation of the Budget.
• Legislative services, including the drafting of legislation and examination (“blue-stamping”) of regulations.
• Liaison between the Department and other groups in Justice Canada, including on litigation and drafting.

Legal support for the Department is provided in the following practice areas:

• Financial institutions
• Securities
• International trade and finance
• Crown, commercial and corporate
• The national debt and related instruments
• Taxation

Legal support delivered through:

• Response to opinion requests, including advice on alternative policy options
• Review of policy notes and other documents prepared by the Department on matters that have legal risk concerns
• Analysis of developments in jurisprudence and implications
• Coordinating the effort by departmental officials necessary to respond to legal obligations arising out of litigation (e.g. document discovery, affidavit evidence / testimony)
• Preparation of legal documents (agreements and contracts)
• Participation in negotiations
• Drafting, or the giving of instructions on the drafting, of legislation and regulations

Value and Ethics

• Report to the Deputy Minister on Values and Ethics issues
• Also serves as the Disclosure Protection Officer responsible for receipt, screening and investigation of disclosures of wrongdoing
• Promote awareness, understanding and compliance with the Values and Ethics Code for the Public Sector, and the Finance Code of Conduct
• Assist employees in understanding their responsibilities under the Codes
  • One of responsibilities of public servants is avoiding “conflict of interest” situations
  • “Conflict of interest” — a situation in which a public servant has a personal interest that could reasonably be seen to compromise his or her ability to perform his or her duties objectively and impartially
  • Conflict of interest risks vary depending on the nature of the public servant’s duties
  • To mitigate conflict of interest risks, all Finance employees have an ongoing obligation to make annual disclosures of any reportable publicly traded securities they personally hold
• Guide employees in upholding highest standards in values and ethics through awareness, dialogue and mutual problem-solving
• Serve as a safe haven for employees to discuss ethical dilemmas and to disclose potential cases of wrongdoing in the workplace while respecting privacy / confidentiality issues

Corporate Services Branch

Overview of the Branch

Assistant Deputy Minister: Janelle Wright

• Director General & Chief Financial Officer, Financial Management Directorate: Darlene Bess
• Director General & Chief Information Officer, Information Management and Technology Directorate: Philippe Lajeunesse
• A/Director General, Human Resources and Security Directorate: Dominic Bastien

What We Do

The Corporate Services Branch provides the full suite of services and support to the Department in the areas of administration, corporate planning, financial management, human resources, information management and technology, and accommodations.

Financial Management

The Chief Financial Officer leads the Financial Management Directorate (FMD) and is the key departmental strategic advisor on financial management matters.

The objective of FMD is to:

• provide financial advisory services to all branches;
• prepare corporate reports, plans and statements;
• administer the corporate accounting function;
• implement financial policies and internal controls;
• support accommodation and building requirements; and
• provide centralized procurement and materiel management services

The Minister’s Office is also assigned a Financial Management Advisor (FMA) from FMD to assist with day-to-day financial activities.

Information Management and Technology

The Chief Information Officer leads the Information Management and Technology Directorate (IMTD) and provides strategic advice on matters pertaining to Information Management (IM) and Information Technology (IT).

The objectives of IMTD are to:

• provide the Department’s branches with modern, mobile, and collaborative tools and services and related technical support;
• support the implementation of government-wide IT solutions and transformation initiatives;
• provide guidance and advice on the retention and disposition of corporate information in adherence with federal legislation and policies; and
• balance the security of corporate assets and IT infrastructure controls with productivity and business requirements.

Human Resources

The Head of Human Resources (HR) leads the Human Resources and Security Directorate and is the key departmental strategic advisor on matters pertaining to HR.

The objective of HR is to develop and implement people management strategies and initiatives that directly contribute to the achievement of Department’s business objectives, including:

• Providing HR advisory services to all branches;
• Offering access to high quality HR programs and services in areas such as recruitment, talent management and employee development, workplace wellbeing, and diversity and inclusion;
• Serving as liaison between employees and the Public Service Pay Centre to help prevent and address pay issues;
• Monitoring key HR areas and providing corporate reports.

HR is also responsible for providing HR support and services to the Minister’s Office pertaining to staffing, pay and benefits, leave entitlements, terminations Official Languages, Employment Equity, etc.

Security

The Assistant Deputy Minister, as Chief Security Officer, is responsible for the management of the departmental security program

The objective of the security program is to provide services related to:

• Security Screening prior to start of employment, including for exempt staff
• Safeguarding departmental assets and information
• Ensuring appropriate security safeguards in the workplace
• Providing secure access to appropriate tools and networks for communications at the secret and top-secret levels
• Conducting risk assessments and recommendations ahead of internal travel

The full suite of security services are also provided to Ministers’ Offices.

Current Branch Priorities

• Ensure the Department is fully prepared to implement a hybrid work model and a physical return to the workplace as soon as the public health situation safely permits
• Ensure that the Department has the technological tools needed to support the evolving work of the department, especially in a hybrid work model
• Modernize the Department’s human resource management practices to better invest in the talent development of employees.

Internal Audit Directorate (IAD)

Overview of the Branch

Chief Audit Executive (CAE)^***: Kari Swarbrick

• IA Principal: John McGarth
  • Internal Auditor: Scott Ko
  • Internal Auditor: Philip Kwan
• IA Principal: Marie-Josée Yelle
  • IA Project Leader/Senior Internal Auditor: Vacant
  • Senior Internal Auditor: Megan Bokovay
• IA Principal: Vacant

What We Do

The Internal Audit Directorate supports the Minister and Department of Finance Canada by providing independent, objective assurance and consulting services that are designed to add value and improve the department’s operations.

Its mission is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.

The Internal Audit Directorate helps the department accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.

Role of Internal Audit Directorate

As the Department of Finance Canada’s internal audit function, Internal Audit Directorate provides assurance as to whether the department’s activities are managed in a way that demonstrates responsible stewardship to Canadians. It also provides the Deputy Minister and senior management with independent and objective assurance services and advice.

The Internal Audit Directorate is committed to adding value by identifying areas of improvement, in order to assist the department to better meet its objectives.

“The mandate of the Internal Audit Directorate is to support senior management in attaining the strategic objectives of the department by providing objective, independent and evidence-based information, assurance, and advice on the effectiveness, efficiency and economy of departmental activities.”

Internal Audit Directorate’s Team

The Internal Audit Directorate team, including the Chief Audit Executive, is currently composed of six professional auditors, including one Chartered Professional Accountant, three Certified Internal Auditors, as well as two Certified Internal Auditors in training.

The Internal Audit Directorate has a combined audit and relevant experience of over 100 years and diverse backgrounds that consist of undergraduate and graduate degrees in fields, including but not limited to accounting and business, public administration, biology and political science.

The team’s ultimate goal is to provide value to the department and support the work of colleagues, and to that end, the team is continuously updating their professional skills and knowledge of the organization.

Chief Audit Executive’s Office

• The Chief Audit Executive is responsible for the overall strategic leadership of the Internal Audit Directorate.
• The Chief Audit Executive’s Office responsibilities include, but are not limited to:
  • Establishing, maintaining, and assuring that the department’s internal audit function has sufficient authority to fulfill its duties.
  • Approving reports on the results of internal audit engagements.
  • Reporting periodically to the Deputy Minister and the Departmental Audit Committee.
  • Establishing at least annually, and updating as required, a departmental risk-based internal audit plan.
  • Representing the directorate at various departmental and government-wide committees.
  • Building and maintaining relations with Deputy Minister’s Office, other branches and external stakeholders (e.g., the Office of the Auditor General).
  • Approving the directorate’s human resources planning, and financial administration and planning.
  • Reviewing all Memorandum to Cabinets and Treasury Board Submissions involving the Department of Finance Canada.
  • Reviewing and approving the directorate’s ATIP requests.

Internal Audit Directorate’s Key Activity and Services

Assurance and Consulting

Assurance services involve objective examination of evidence to provide an independent assessment of governance, risk management and/or controls.

Consulting services are a client negotiated service that is less rigorous, yet provides timely insight to inform management’s decisions, oversight and foresight.

Liaison

The IAD oversees external assurance activities and liaises with external assurance providers such as:

• the Office of the Comptroller General
• the Office of the Auditor General
• the Commissioner of the Environment and Sustainable Development.

Departmental Audit Committee Secretariat

The Departmental Audit Committee (DAC) offers guidance to the Deputy Minister in the areas of governance, risk management, and control processes. The DAC Secretariat coordinates the DAC meetings and supports the DAC members to accomplish their responsibilities and tasks.

Management Action Plan

• The IAD communicates with senior management to stay informed on the progress of recommendations.
• The IAD presents the results and performance relative to the management action plans to the DAC semi-annually and in the Chief Audit Executive Annual Report.

Professional Practices

This group is responsible for many activities, including strategic planning, human resource management, and compliance with policies, directives and standards.

• Risk-based Audit Plan (RBAP): Developing the annual RBAP, which is required by the Policy on Internal Audit.
• Audit Methodology: Developing and maintaining the IAD’s audit methodology (policies, guidance, audit tools and programs).
• Quality Assurance Framework: Managing reporting requirements, the implementation and coordination of a Quality Assurance Framework, which includes Quality Assurance Inspections of IAD activities.
• Internal Audit Performance: Reporting IAD’s performance to the Office of the Comptroller General of Canada.

IAD’s Deliverables and Reporting Requirements

The Departmental Audit Committee

“Departmental Audit Committee members have many responsibilities, including providing independent and objective advice and recommendations to the Deputy Minister on the sufficiency, quality and results of internal audit engagements related to the adequacy and functioning of the department’s frameworks and processes for risk management, control and governance.”

Internal Members

• Michael Sabia, Deputy Minister
• Nick Leswick, Associate Deputy Minister

External Members^****

• Kevin Dancey, DAC Chair
• Linda Lizotte-MacPherson
• Daphne Meredith