Strengthening the financial sector

Overview

Bill 44, the Financial Statutes Amendment Act, 2020 amends 7 pieces of legislation to create a better business environment for financial institutions and maintain our role as a leader in this sector.

Bill 44 makes it easier for job creators to do business by eliminating red tape, fixing deficiencies, and addressing challenges faced during the pandemic.

Key changes

Bill 44 updates the following legislation:

Credit Union Act

• Reduces the size of the Credit Union Deposit Guarantee Corporation board by two directors, which will lower costs without impacting operations
• Allows the Credit Union Deposit Guarantee Corporation to share information with agencies of other governments in Canada
• Makes it easier for credit unions to engage in information and technology-related services
• Makes it easier for credit unions to hold virtual meetings
• Transfers some operational authorities from the Lieutenant Governor in Council to the President of Treasury Board and Minister of Finance
  • For example, this will allow government to more quickly assist credit unions, while still maintaining accountability and due diligence

ATB Financial Act

• Facilitates ATB Financial’s access to the Bank of Canada’s Standing Term Liquidity Facility, which helps financial institutions access liquidity when needed
  • In order to permit access to the Standing Term Liquidity Facility, the Bank of Canada requires regulatory information to be shared with it; to facilitate this, the Alberta Superintendent of Financial Institutions, who enforces and administers the ATB Financial Act, will be written into the legislation
  • While this position already exists, it is not yet formally recognized in legislation

Loan and Trust Corporations Act

• Allows the minister to dissolve unregistered loan and trust corporations that do not comply with legislative requirements or are not in the public interest
• Transfers some delegated authorities from the Lieutenant Governor in Council to the President of Treasury Board and Minister of Finance
  • For example, this will reduce the approval time it takes for loan or trust corporations to incorporate in Alberta

Financial Administration Act

• Creates legal clarity around the exemption of classes of provincial agencies and fund administrators
  • It is common practice within Canada to exempt Crown corporations with a commercial mandate

Freedom of Information and Protection of Privacy Act

• Ensures the legislation refers to ATB Financial rather than Alberta Treasury Branches to match the institution’s legal name

Credit Union Amendment Act, 2016

• Repeals two unproclaimed provisions
  • One of the provisions describes the mode of operation and purpose of credit unions, but the description is too narrow
  • The other provision would have prevented credit unions from selling life insurance in their branches

Local Authorities Capital Financing Act

• Allows government to loan money to regional airport authorities in emergency situations to help maintain their operations during the pandemic
  • Currently, the Local Authorities Capital Financing Act only allows government to loan money to local authorities for new facilities and other infrastructure projects

Next steps

Bill 44 received royal assent on December 9, 2020 and came into force the same day.

News

• Cutting red tape in Alberta’s financial sector (November 3, 2020)