Regulations

Reviewing Canada's Anti-Money Laundering And Anti-Terrorist Financing Regime

Feb 07, 2018

On February 7, 2018, the Canadian Department of Finance (the Department) released a consultation document entitled "Reviewing Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime". The Act requires that a committee of Parliament review the administration and operation of the Act every five years.

The Department notes that a Mutual Evaluation report by the Financial Action Task Force ("FATF") found that Canada has strong anti-money laundering and anti-terrorist financing legislation and regulations, but noted there are several areas where action could be taken to ensure the framework meets technical standards and is even more effective.

Review the publication on the Department's website.

COSO and WBCSD Release New Draft Guidance on Environmental, Social and Governance-related Risks

Feb 07, 2018

On February 7, 2018, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) released draft Guidance for applying Enterprise Risk Management (ERM) to Environmental, Social and Governance (ESG)-related risks. ​

The supplemental draft Guidance is designed to help organizations worldwide respond to the increasing prevalence and severity of ESG-related risks, ranging from extreme weather events to product safety recalls.

COSO and WBCSD are seeking public comment on the draft Gu​idance and the previously released Executive Summary through June 30, 2018. Comment letters may be provided to risk@wbcsd.org​.

The guidance and executive summary are available on the COSO's website.

Review the press release on the COSO's website.

Corporate reporting in the United States and Canada

Feb 05, 2018

On February 5, 2018, the World Business Council for Sustainable Development (WBCSD) released a new report, compiling data that offers a closer look into the reporting landscape of the United States and Canada.

This first report in a series of case studies across different countries that looks at significant developments in ESG reporting seeks to address the challenges, opportunities and next steps for corporate reporting and disclosure.

Review the report on the WBCSD's website.

Bringing Your Annual Meeting into the Digital Age

Jan 30, 2018

On January 30, 2018, Fasken LLP released an article on how public companies need to bring their annual meetings into the digital age and to use them as an effective means of communicating with a large number of shareholders and with the investment community in general.

A revamped annual meeting may even lead to reduced costs when compared to the traditional model of renting a conference room at a hotel and providing refreshments, as modest as they may be, for shareholders.  Canadian corporate law provides a framework which can be used to increase shareholder access to annual meetings and to maximize the impact of annual meetings.

Review the full article on Fasken LLP's website.

2018-2019 New Brunswick budget highlights

Jan 30, 2018

On January 30, 2018, New Brunswick’s Minister of Finance, Cathy Rogers, presented the province’s 2018-2019 budget.

The budget focused on three key priorities:

  • Investments in seniors;
  • Youth employment; and
  • Economic competitiveness.

The announced changes to taxation in New Brunswick are outlined in our Canadian tax alert.

The Global Risks Report 2018: Fractures, Fears and Failures

Jan 29, 2018

In January 2018, the World Economic Forum released its Global Risks Report. Last year’s Global Risks Report was published at a time of heightened global uncertainty and rising popular discontent with the existing political and economic order. The report called for “fundamental reforms to market capitalism” and a rebuilding of solidarity within and between countries. One year on, the urgency of facing up to these challenges has, if anything, intensified.

Economic growth is picking up, but 2017 was a year of widespread uncertainty, instability and fragility—and the latest results of our annual Global Risks Perception Survey (GRPS) suggest respondents are pessimistic about the year ahead: in a new question gauging expectations for 2018, only 7% of responses point to a reduction of risk, compared with 59% pointing to an increase. In the sections that follow, the report highlights four concerns:

  1. persistent inequality and unfairness;
  2. domestic and international political tensions;
  3. environmental dangers and;
  4. cyber vulnerabilities.

The authors conclude by reflecting on the increased dangers of systemic breakdown.

Review the announcement and the report on the World Economic Forum's website.

Reconciling Blockchain Theory With Accounting Reality

Jan 28, 2018

On January 28, 2018, Financial Executives International (FEI) posted an article on how the fervor around Bitcoin, cryptocurrencies and the underlying blockchain technology is hitting new highs and lows. But despite the fervor of blockchain enthusiasts seeking to apply the technology to financial reporting and completely disrupting corporate disclosures, there are significant hurdles that sit at the core of modern accounting practice and audit methodology.

Accounting standard setters have the cryptocurrencies on their radar, if not the accounting implications of blockchain in particular. This past summer the Financial Accounting Standard Board (FASB) received a request from The Chamber of Digital Commerce to add a project around accounting for digital currencies to its Emerging Issues Task Force agenda.

Review the full article on FEI's website.

Governmental watchdog soon to investigate Canadian companies abroad

Jan 27, 2018

On January 17, 2018, the Government of Canada (Government) announced two new initiatives to strengthen Canada’s approach to responsible business conduct for Canadian companies operating abroad, namely, the creation of an independent Canadian Ombudsperson for Responsible Enterprise (Ombudsperson) and a multi-stakeholder Advisory Body on Responsible Business Conduct (Advisory Body).

These initiatives are founded on the Government’s commitment to advance human rights by supporting Canadian companies in operating responsibly and improving access to remedy for alleged human rights abuses arising from Canadian company operations abroad. The Government will soon be clarifying how these entities will operate.

Canadian Ombudsperson for Responsible Enterprise

The Ombudsperson’s mandate will be to investigate allegations of human rights abuses arising from Canadian corporate activity abroad. This person will operate with a budget that allows him/her to conduct independent investigations, be appointed through an order-in-council that will determine the specifics of the mandate and the related responsibilities and carry out his/her duties full-time for a term of up to five years.

Multi-stakeholder Advisory Body on Responsible Business Conduct

The Advisory Body will comprise experts in civil society and industry and will report to the Minister of International Trade. Its role will be to advise the government on the effective implementation and further development of its laws, policies and practices addressing the social responsibility of Canadian companies operating abroad, in particular with the creation of new laws and regulations. The Advisory Body will help the Government determine the Ombudsperson’s mandate and investigative procedures.

Review the full article on Norton Rose Fulbright's website and the press release on the Government of Canada's website.

Draft Office of the Privacy Commissioner of Canada Position on Online Reputation

Jan 26, 2018

On January 26, 2018, the Office of the Privacy Commissioner of Canada ("OPC") published its "Draft Position on Online Reputation in conjunction with a Notice of Consultation and Call for Comments on this position. This Draft Position follows a 2016 consultation and call for essays on this subject.

The development of reputations online is complicated because, in the digital environment, judgments are generally formed on information people read about others, or images they see, often without the benefit of personal contact and not necessarily in the same context in which it was intended.

Moreover, information, once posted online, gains characteristics that affect reputation – it can easily be distorted, is persistent and can be extremely difficult to remove.

Review the Draft Position on the OPC's website and an article on Borden Ladner Gervais' website.

How To Tackle the Challenges of Global Data Protection Regulation (GDPR)

Jan 19, 2018

On January 19, 2018, Compliance Week posted a report on how GDPR will impact the way you manage client and prospect information, and how you collect and manage huge volumes of personal data.

This whitepaper explores compliance approaches, explains the importance of governance to successful compliance, and offers guidance on implementing new technologies to support GDPR initiatives.

In this report, you will learn:

  1. How to solve for the challenge of identifying and accessing the right data
  2. The right approach to track evolving data environments
  3. Technology your peers will use to fulfill the GDPR’s many requirements

Download the report on Compliance Week's website.

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