Vol. 146, No. 1 — January 4, 2012

Registration

SI/2011-117 January 4, 2012

FEDERAL ACCOUNTABILITY ACT

Order Fixing December 31, 2011 as the Day on which Subsection 262(2) of the Act Comes into Force

P.C. 2011-1677 December 15, 2011

Whereas subsection 300(2) of the Federal Accountability Act (see footnote a) provides that subsection 262(2) of that Act comes into force, in accordance with subsection 114(4) (see footnote b) of the Canada Pension Plan (see footnote c), on a day to be fixed by order of the Governor in Council;

And whereas, in accordance with subsection 114(4) (see footnote d) of the Canada Pension Plan (see footnote e), the lieutenant governor in council of each of at least two thirds of the included provinces, as defined in subsection 114(1) (see footnote f) of that Act, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment contemplated by subsection 262(2) of the Federal Accountability Act (see footnote g);

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the President of the Treasury Board, pursuant to subsection 300(2) of the Federal Accountability Act, chapter 9 of the Statutes of Canada, 2006, hereby fixes December 31, 2011 as the day on which subsection 262(2) of that Act comes into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

To bring into force subsection 262(2) of the Federal Accountability Act (2006).

Objective

To maintain the status quo that the Canada Pension Plan Investment Board (CPPIB) is exempt from the Financial Administration Act, with the exception of the fraud provisions.

Background

Subsection 262(2) of the Federal Accountability Act amends section 85 of the Financial Administration Act. Earlier amendments to the Financial Administration Act caused some confusion because it appeared that the CPPIB’s exemption from Divisions I to IV of Part X of the Financial Administration Act had been removed. This amendment to the Federal Accountability Act clears up that confusion by confirming that the CPPIB is, and remains, exempt from Divisions I to IV of Part X of the Financial Administration Act with the exception of section 154.01, which features new fraud provisions. These fraud provisions would therefore now apply to the CPPIB as was originally intended.

Implications

In the past, the CPPIB was not required to comply with Divisions I to IV of Part X (“Crown Corporations”) of the Financial Administration Act. Bringing into force subsection 262(2) of the Federal Accountability Act would reaffirm that the exemption continues to exist (with the exception of the newly imposed fraud provisions).

Consultations

Under paragraph 114(4)(f) of the Canada Pension Plan, any provision in an act of Parliament that alters, either directly or indirectly, the Canada Pension Plan Investment Board Act shall not be brought into force until the lieutenant governor in council of each of at least two thirds of the included provinces, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the provision.

A formal consultation was conducted in the spring of 2011 and sufficient provincial approval of subsection 262(2) of the Federal Accountability Act was achieved.

Departmental contacts

Wayne Foster
Director
Financial Markets Division
Financial Sector Policy Branch
Finance Canada
140 O’Connor Street
Ottawa, Ontario
K1A 0G5

Anthony Chapman
Director
Governance Policy
Government Operations Sector
Treasury Board of Canada Secretariat
140 O’Connor Street
Ottawa, Ontario
K1A 0R5

Footnote a
S.C. 2006, c. 9

Footnote b
S.C. 2003, c. 5, s. 10

Footnote c
R.S., c. C-8

Footnote d
S.C. 2003, c. 5, s. 10

Footnote e
R.S., c. C-8

Footnote f
S.C. 2002, c. 7, s. 111

Footnote g
S.C. 2006, c. 9