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A modern corporate governance framework should take into account the changing social, economic, and technological context in which federally regulated financial institutions (FRFIs) operate. In light of recent developments, including the introduction of diversity disclosure requirements in the Canada Business Corporations Act (CBCA) and the digitalization of the financial sector that has been further accelerated by the COVID-19 pandemic, the Government announced a public consultation in Budget 2021 on measures to:

• adapt and apply the CBCA diversity requirements for FRFIs; and,
• expand FRFIs’ use of electronic communications, including the delivery and provision of governance documents, as well as virtual meetings.

We want to hear from you on:

• the benefits and limitations of applying the CBCA diversity disclosure model to FRFIs;
• whether or not the CBCA diversity disclosure model meets the needs of FRFIs and potential investors;
• the benefits and risks to FRFIs of expanding electronic communications, including through allowing the electronic delivery of governance documents and allowing FRFIs to hold fully virtual meetings with their owners; and,
• the impact of these measures on different types of FRFIs, for example small- and medium-sized banks, federal credit unions and their members, and the voting policyholders of certain insurance companies.

More detailed information and specific questions can be found in the accompanying consultation paper. We invite you to submit comments or feedback by email or by mail by September 23^rd, 2022.

Send us an email

Send us an email at governanceconsultation-consultationgouvernance@fin.gc.ca with “Corporate Governance Consultation” as the subject line.

Participate by mail

Manuel Dussault, Acting Director General
Financial Institutions Division
Financial Sector Policy Branch
Department of Finance Canada
James Michael Flaherty Building
90 Elgin Street
Ottawa ON K1A 0G5

Who is the focus of this consultation?

We want to hear from all types of FRFIs, including banks, federal credit unions and insurance companies, and their owners, including shareholders, voting policyholders and credit union members, as well as academic and civil society groups, associations and any other interested members of the public.

What’s next?

This feedback will be considered by the Minister of Finance and departmental officials to help inform decisions on modernizing corporate governance for FRFIs.

Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:

• consent to the disclosure of your comments in whole or in part;
• request that your identity and any personal identifiers be removed prior to publication; or
• wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).

Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Should you indicate that your comments, or any portions thereof, be considered confidential, the Department of Finance will make all reasonable efforts to protect this information.

Related link

• Corporate Governance Consultation: Improving Diversity and Facilitating Electronic Communications in Federally Regulated Financial Institutions

Get in touch

Email us at governanceconsultation-consultationgouvernance@fin.gc.ca