Modernizing Corporate Governance for Federally Regulated Financial Institutions

Current Status: Closed

In Budget 2021, the Department announced a public consultation on measures that would:

• Adapt and apply the Canada Business Corporations Act diversity disclosure requirements to federally regulated financial institutions (FRFIs), and
• expand FRFIs’ use of electronic communications with their owners, including the delivery and provision of governance documents, as well as virtual meetings.

This engagement process gave all interested members of the public the opportunity to provide input on this topic.  The consultation ran from August 9^th to September 23^rd, 2022.  Thank you to everyone who participated.

Key questions for consideration

This consultation sought feedback on:

• The benefits and limitations of two models (notice-and-access, and access equals delivery) of electronic communications that would allow for the electronic delivery of governance documents to FRFI owners, such as shareholders, certain insurance policyholders and credit union members.
• Whether to allow FRFIs to hold virtual-only shareholder meetings without seeking a court order.
• Measures that would align the financial institution statutes with the diversity disclosure requirements in the Canada Business Corporations Act.

What’s next?

Input received through this consultation will assist the government in developing potential legislative amendments to the financial institutions statutes that would encourage diversity on the boards and senior management of FRFIs, and facilitate electronic communications between FRFIs and their owners. . While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.

Related links

Corporate Governance Consultation: Improving Diversity and Facilitating Electronic Communications in Federally Regulated Financial Institutions - Canada.ca