Evidence of meeting #184 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was proposed.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Manuel Dussault  Senior Director, Framework Policy, Financial Sector Policy Branch, Department of Finance
Justin Brown  Director, Financial Stability, Financial Sector Policy Branch, Department of Finance
Peter Fragiskatos  London North Centre, Lib.
Yuki Bourdeau  Senior Advisor, Capital Markets Division, Financial Sector Policy Branch, Department of Finance
Eleanor Ryan  Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Jean-François Girard  Director, Consumer Affairs, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Brigitte Goulard  Deputy Commissionner, Financial Consumer Agency of Canada
Kim Rudd  Northumberland—Peterborough South, Lib.
Mark Schaan  Director General, Marketplace Framework Policy Branch, Innovation, Science and Economic Development Canada
Ian Wright  Director, Financial Crimes Governance and Operations, Department of Finance
Darryl C. Patterson  Director, Corporate, Insolvency and Competition Policy Directorate, Marketplace Framework Policy Branch, Department of Industry
Martin Simard  Director, Copyright and Trademark Policy, Marketplace Framework Policy Branch, Department of Industry
Andrea Flewelling  Senior Policy Advisor, Marketplace Framework Policy Branch, Department of Industry
Patrick Blanar  Senior Policy Analyst, Patent Policy Directorate, Department of Industry
Dale MacMillan  Vice-President, Corporate Services and Chief Financial Officer, National Research Council of Canada
Christopher Johnstone  Director General, National Programs and Business Services, National Research Council of Canada
Eric Grant  Director, Community Lands Development, Lands and Environmental Management, Lands and Economic Development, Department of Indian Affairs and Northern Development
Leane Walsh  Director, Fiscal Policy and Investment Readiness, Economic Policy Development, Lands and Economic Development, Department of Indian Affairs and Northern Development
Susan Waters  Director General, Lands and Environmental Management Branch, Lands and Economic Development, Department of Indian Affairs and Northern Development
Michèle Govier  Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
Katharine Funtek  Executive Director, Trade Controls Policy, Department of Foreign Affairs, Trade and Development
Bev Shipley  Lambton—Kent—Middlesex, CPC
Nicole Giles  Director, International Trade and Finance, Assistant Deputy Minister's Office, Department of Finance
Deirdre Kent  Director General, International Assistance Policy, Department of Foreign Affairs, Trade and Development
Mark Lusignan  Director General, Grants and contributions Management, Department of Foreign Affairs and International Trade (International Trade)
Michelle Kaminski  Director, Office of Innovative Finance, Grants and Contributions Management, Department of Foreign Affairs, Trade and Development
Chantal Larocque  Deputy Director, Development Finance, Grants and Contributions Financial Policy, Foreign Affairs Canada
Danielle Bélanger  Director, Gender-Based Analysis Plus and Strategic Policy, Policy and External Relations Directorate, Status of Women Canada
Alison McDermott  General Director, Economic and Fiscal Policy Branch, Department of Finance
Derek Armstrong  Executive Director, Results Division, Expenditure Management Sector, Treasury Board Secretariat
Lori Straznicky  Executive Director, Pay Equity Task Team, Strategic Policy, Analysis and Workplace Information, Labour Program, Department of Employment and Social Development
Don Graham  Senior Advisor to the Assistant Deputy Minister, Compensation and Labour Relations Sector, Treasury Board Secretariat
Bruce Kennedy  Manager, Pay Equity Task Team, Labour Program, Department of Employment and Social Development
Richard Stuart  Executive Director, Expenditure Analysis and Compensation Planning, Expenditure Management Sector, Treasury Board Secretariat
Colin Spencer James  Senior Director, Social Development Policy, Strategic and Service Policy Branch, Department of Employment and Social Development
Andrew Brown  Director General, Employment Insurance Policy Directorate, Skills and Employment Branch, Department of Employment and Social Development
Barbara Moran  Director General, Strategic Policy, Analysis and Workplace, Labour Program, Department of Employment and Social Development
Rutha Astravas  Director, Employment Insurance Policy, Special Benefits Policy, Department of Employment and Social Development
Charles Philippe Rochon  Senior Policy Analyst, Labour Standards and Wage Earner Protection Program, Workplace Directorate, Department of Employment and Social Development

4:45 p.m.

Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Please send it to the clerk of the committee.

4:45 p.m.

Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Eleanor Ryan

I was just conferring with my colleagues and I think we did ask for that information. This is a ballpark number, but the number of complaints that an internal process deals with— we're looking at the large banks—are probably in the tens of thousands every year. The number of complaints that go to the external complaint bodies, both of them together, is about 650.

4:45 p.m.

Liberal

The Chair Liberal Wayne Easter

Ms. Rudd.

4:45 p.m.

Kim Rudd Northumberland—Peterborough South, Lib.

Of those 650 complaints, how many would come to you?

4:45 p.m.

Deputy Commissionner, Financial Consumer Agency of Canada

Brigitte Goulard

I don't have that answer. I will get back to you on which of those 650 would come to us and which would go to the external complaint body.

4:45 p.m.

Northumberland—Peterborough South, Lib.

4:45 p.m.

Liberal

The Chair Liberal Wayne Easter

Mr. Julian.

4:45 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you, Mr. Chair.

Ms. Goulard, we are putting questions to you because the work you do is of great interest to us. We have all been able to see that the Canadian banking system does not always provide the services we need. That is why we want the system to work better, and we want people to be able to submit complaints to you.

You mentioned that certain cases will be appealed. If I understand correctly, those appeals are based on administrative law. However, I'd like to know how many of those appeals were brought following an intervention by your organization.

4:45 p.m.

Deputy Commissionner, Financial Consumer Agency of Canada

Brigitte Goulard

I will explain the internal process a bit.

The investigations branch conducts an investigation on a potential violation and then submits a compliance report to me. Following this report, I issue a notice of violation to the financial institution. It then has the right to make representations to the commissioner if it does not agree on the penalty imposed, or if it wants to know if it will be named, because it is up to the commissioner to decide to name the financial institution or not.

I used the word “appeal” because people know that word better, but these are, rather, representations made to the commissioner who will then draft her decision.

4:45 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

And the bill will not change that process, correct?

November 5th, 2018 / 4:45 p.m.

Deputy Commissionner, Financial Consumer Agency of Canada

Brigitte Goulard

What will change...

4:45 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

The penalties will increase but the process you have just described to us will not change.

4:45 p.m.

Deputy Commissionner, Financial Consumer Agency of Canada

Brigitte Goulard

Two things will change; the first being the amount of the penalty, and the second being the elimination of the commissioner's discretion in naming the financial institution concerned. After having issued a notice of violation, the commissioner will always have to name the financial institution in future. Those two things will change but the process will remain the same.

4:45 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you.

4:45 p.m.

Liberal

The Chair Liberal Wayne Easter

Are there any further questions from anyone at the table?

I have just a couple of questions. On the timeline of complaint, is there a timeline going back, a timeline on how far you can go back to issue a complaint under this legislation?

When we held the hearings with the banks and with FCAC, some of those complaints were actually 25 years old, I believe. Is there a timeline going back?

4:45 p.m.

Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Eleanor Ryan

There is no limit. If consumers are dissatisfied from five years ago or 10 years ago, they can still bring it.

4:45 p.m.

Liberal

The Chair Liberal Wayne Easter

You did say that the banks have to keep a record of complaints filed with them and that it would be accessible. For how long a period of time do they have to keep those records?

4:45 p.m.

Director, Consumer Affairs, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Jean-François Girard

I think it's seven years.

4:45 p.m.

Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Eleanor Ryan

We're just going to confer.

4:45 p.m.

Liberal

The Chair Liberal Wayne Easter

I forget whether it said.... If it said, I can find it.

4:50 p.m.

Director, Consumer Affairs, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Jean-François Girard

In proposed section 627.44, it has a period of seven years, for the record.

4:50 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay. Thank you for that.

Are there any other questions?

Thank you all for appearing and answering questions.

Turning to division 6, Canada Business Corporations Act, part 4, tab 6 in your books, we have Mark Schaan, who is the director general, marketplace framework policy branch with ISED; and Mr. Patterson, director, corporate, insolvency and competition policy directorate. You need a longer name. With Finance, we have Mr. Wright, director, financial crimes governance and operations.

Welcome, gentlemen.

Mr. Schaan, would you like to lead off?

4:50 p.m.

Mark Schaan Director General, Marketplace Framework Policy Branch, Innovation, Science and Economic Development Canada

Thank you, Mr. Chair.

Today, I am presenting division 6 of part 4 of the bill, which amends the Canada Business Corporations Act, or CBCA, to force corporations to collect and hold information on their effective properties, that is to say the individuals who in the final analysis own and control the enterprises.

I'll be speaking about changes to the Canada Business Corporation Act, with a perspective to beneficial ownership and transparency.

Very quickly, this relates back to a bunch of work we have been doing with the federal, provincial and territorial groups of corporate registries and tax officials, following budget 2017 commitments to increase transparency of beneficial ownership information.

Budget 2018 codified that, by highlighting the agreement of federal, provincial and territorial finance ministers in December 2017, which committed all provinces, territories and the federal government to increase measures of beneficial ownership transparency by July of 2019. In the first instance, they were to do so by amending their corporate statute to require private corporations to hold beneficial ownership information of those possessing more than 25% or control, in fact, of a private corporation. They were also to do so by binding directors and officers of the corporation to pursue best efforts to assemble that registry, to hold it in their corporate books and to provide penalties in place where that was not followed.

This is part of our international commitment related to money laundering, tax evasion and terrorist financing. We're doing so, in recognition of the shared jurisdiction that is incorporation in Canada, by working together with our provincial and territorial colleagues to bring these changes into effect.

With that, I am happy to take any questions.

4:50 p.m.

Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Which clauses are you referring to?

4:50 p.m.

Director General, Marketplace Framework Policy Branch, Innovation, Science and Economic Development Canada

Mark Schaan

It's clauses 182 to 186.