Canada:
Prime Minister Trudeau’s Mandate Letter For The Minister Of Finance Includes Regulatory Proposals And Updates
03 January 2022
McCarthy Tétrault LLP
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On December 16, 2021, Prime Minister Justin Trudeau provided
Chrystia Freeland, the Minister of Finance, with a mandate letter
setting out his expectations for her Ministry in moving forward
with a host of proposals. In the letter, the Prime Minister states
that the Minister of Finance must prioritize support for Canadians
and businesses that face struggles in the fight against the
COVID-19 pandemic. The Prime Minister raised further objectives
consistent with the expectations of the Minister of Finance prior
to the election and the Liberal government’s campaign platform,
including economic recovery and growth supporting the 2030 climate
goals, accelerating the transition to a net-zero economy no later
than 2050, affordable living for middle class Canadians, and
maintaining the sound fiscal trajectory.
In particular, the Minister of Finance was directed to deliver
the following commitments which financial institutions and those
watching the regulation of financial institutions should
monitor:
- Establishing a single, independent ombudsperson, with the power
to impose binding arbitration, to address consumer complaints
involving banks. - Lowering the criminal rate of interest.
- Requiring federally regulated financial institutions to offer
flexible repayment options to those who face a life event causing
financial stress, including a six-month deferral of mortgage
payments in qualifying circumstances. - Advancing legislation to enhance the powers of the Financial
Consumer Agency of Canada to review bank fees and charges and to
require adjustments if they are excessive. - Adapting and applying to federally regulated financial
institutions the Canada Business Corporations
Act requirements to notify shareholders of information
relating to the diversity of directors and members of senior
management. - Supporting the Minister of Public Safety in his work to
strengthen laws and investigative powers related to major financial
crimes and to bring forward a proposal to establish a Canada
Financial Crimes Agency. - Engaging with stakeholders to lower the average overall cost of
interchange fees for merchants. This is intended to benefit small
businesses and protect consumers’ existing reward points. - Working with the Minister of Innovation, Science and Industry,
and with the support of the Minister of National Revenue, to
implement a beneficial ownership registry.
For more information, Prime Minister Trudeau’s mandate
letter to Minister Freeland is available
here.
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