Conflict of Interest Act

This Act may be cited as the Conflict of Interest Act.

The following definitions apply in this Act.

Commissioner means the Conflict of Interest and Ethics Commissioner appointed under section 81 of the Parliament of Canada Act. (commissaire)

common-law partner means a person who is cohabiting with a public office holder in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)

common-law partnership means the relationship between two persons who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year. (union de fait)

dependent child means a child of a public office holder, or a child of the public office holder’s spouse or common-law partner, who has not reached the age of 18 years or who has reached that age but is primarily dependent on the public office holder or public office holder’s spouse or common-law partner for financial support. (enfant à charge)

former reporting public office holder means a former public office holder who, while in office, was a reporting public office holder. (ex-titulaire de charge publique principal)

gift or other advantage means

an amount of money if there is no obligation to repay it; and

a service or property, or the use of property or money that is provided without charge or at less than its commercial value. (cadeau ou autre avantage)

ministerial adviser means a person, other than a public servant, who occupies a position in the office of a minister of the Crown or a minister of state and who provides policy, program or financial advice to that person on issues relating to his or her powers, duties and functions as a minister of the Crown or a minister of state, whether or not the advice is provided on a full-time or part-time basis and whether or not the person is entitled to any remuneration or other compensation for the advice. (conseiller ministériel)

ministerial staff means those persons, other than public servants, who work on behalf of a minister of the Crown or a minister of state. (personnel ministériel)

private interest does not include an interest in a decision or matter

that is of general application;

that affects a public office holder as one of a broad class of persons; or

that concerns the remuneration or benefits received by virtue of being a public office holder. (intérêt personnel)

public office holder means

a minister of the Crown, a minister of state or a parliamentary secretary;

the Chief Electoral Officer;

a member of ministerial staff;

a ministerial adviser;

a Governor in Council appointee, other than the following persons, namely,

a lieutenant governor,

officers and staff of the Senate, House of Commons and Library of Parliament,

a person appointed or employed under the Public Service Employment Act who is a head of mission as defined in subsection 15(1) of the Department of Foreign Affairs, Trade and Development Act,

a judge who receives a salary under the Judges Act,

a military judge within the meaning of subsection 2(1) of the National Defence Act,

a Deputy Commissioner of the Royal Canadian Mounted Police, and

a member of the National Security and Intelligence Committee of Parliamentarians;

the Parliamentary Budget Officer;

a ministerial appointee whose appointment is approved by the Governor in Council; and

a person or a member of a class of persons if the person or class of persons is designated under subsection 62.1(1) or 62.2(1). (titulaire de charge publique)

public sector entity means a department or agency of the Government of Canada, a Crown corporation established by or under an Act of Parliament or any other entity to which the Governor in Council may appoint a person, but does not include the Senate or the House of Commons. (entité du secteur public)

public servant has the meaning assigned by subsection 2(1) of the Public Servants Disclosure Protection Act, but includes officers and non-commissioned members of the Canadian Forces and employees of the Canadian Security Intelligence Service or the Communications Security Establishment. (fonctionnaire)

reporting public office holder means a public office holder who is

a minister of the Crown, minister of state or parliamentary secretary;

the Chief Electoral Officer;

a member of ministerial staff who works on average 15 hours or more a week;

a ministerial adviser;

a Governor in Council appointee, or a ministerial appointee whose appointment is approved by the Governor in Council, who exercises his or her official duties and functions on a part-time basis but receives an annual salary and benefits;

a Governor in Council appointee, or a ministerial appointee whose appointment is approved by the Governor in Council, who exercises his or her official duties and functions on a full-time basis;

the Parliamentary Budget Officer; or

a person or a member of a class of persons if the person or class of persons is designated under subsection 62.1(2) or 62.2(2). (titulaire de charge publique principal)

spouse does not include a person from whom a public office holder is separated if all support obligations and family property or patrimony have been dealt with by a separation agreement or a court order. (époux)

The following are the members of a public office holder’s family for the purposes of this Act:

his or her spouse or common-law partner; and

his or her dependent children and the dependent children of his or her spouse or common-law partner.

Persons who are related to a public office holder by birth, marriage, common-law partnership, adoption or affinity are the public office holder’s relatives for the purposes of this Act unless the Commissioner determines, either generally or in relation to a particular public office holder, that it is not necessary for the purposes of this Act that a person or a class of persons be considered a relative of a public office holder.

The purpose of this Act is to

establish clear conflict of interest and post-employment rules for public office holders;

minimize the possibility of conflicts arising between the private interests and public duties of public office holders and provide for the resolution of those conflicts in the public interest should they arise;

provide the Conflict of Interest and Ethics Commissioner with the mandate to determine the measures necessary to avoid conflicts of interest and to determine whether a contravention of this Act has occurred;

encourage experienced and competent persons to seek and accept public office; and

facilitate interchange between the private and public sector.

For the purposes of this Act, a public office holder is in a conflict of interest when he or she exercises an official power, duty or function that provides an opportunity to further his or her private interests or those of his or her relatives or friends or to improperly further another person’s private interests.

Every public office holder shall arrange his or her private affairs in a manner that will prevent the public office holder from being in a conflict of interest.

No public office holder shall make a decision or participate in making a decision related to the exercise of an official power, duty or function if the public office holder knows or reasonably should know that, in the making of the decision, he or she would be in a conflict of interest.

No minister of the Crown, minister of state or parliamentary secretary shall, in his or her capacity as a member of the Senate or the House of Commons, debate or vote on a question that would place him or her in a conflict of interest.

No public office holder shall, in the exercise of an official power, duty or function, give preferential treatment to any person or organization based on the identity of the person or organization that represents the first-mentioned person or organization.

No public office holder shall use information that is obtained in his or her position as a public office holder and that is not available to the public to further or seek to further the public office holder’s private interests or those of the public office holder’s relatives or friends or to improperly further or to seek to improperly further another person’s private interests.

No public office holder shall use his or her position as a public office holder to seek to influence a decision of another person so as to further the public office holder’s private interests or those of the public office holder’s relatives or friends or to improperly further another person’s private interests.

No public office holder shall allow himself or herself to be influenced in the exercise of an official power, duty or function by plans for, or offers of, outside employment.

No public office holder or member of his or her family shall accept any gift or other advantage, including from a trust, that might reasonably be seen to have been given to influence the public office holder in the exercise of an official power, duty or function.

Despite subsection (1), a public office holder or member of his or her family may accept a gift or other advantage

that is permitted under the Canada Elections Act;

that is given by a relative or friend; or

that is received as a normal expression of courtesy or protocol, or is within the customary standards that normally accompany the public office holder’s position.

When a public office holder or a member of his or her family accepts a gift or other advantage referred to in paragraph (2)(c) that has a value of $1,000 or more, the gift or other advantage is, unless otherwise determined by the Commissioner, forfeited to Her Majesty in right of Canada.

No minister of the Crown, minister of state or parliamentary secretary, no member of his or her family and no ministerial adviser or ministerial staff shall accept travel on non-commercial chartered or private aircraft for any purpose unless required in his or her capacity as a public office holder or in exceptional circumstances or with the prior approval of the Commissioner.

No minister of the Crown, minister of state or parliamentary secretary shall knowingly be a party to a contract with a public sector entity under which he or she receives a benefit, other than a contract under which he or she is entitled to pension benefits.

No minister of the Crown, minister of state or parliamentary secretary shall have an interest in a partnership or private corporation that is a party to a contract with a public sector entity under which the partnership or corporation receives a benefit.

Subsections (1) and (2) do not apply if the Commissioner is of the opinion that the contract or interest is unlikely to affect the exercise of the official powers, duties and functions of the minister of the Crown, minister of state or parliamentary secretary.

No public office holder who otherwise has the authority shall, in the exercise of his or her official powers, duties and functions, enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent.

No public office holder, other than a minister of the Crown, minister of state or parliamentary secretary, who otherwise has the authority shall permit the public sector entity for which he or she is responsible, or to which he or she is assigned, to enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent except in accordance with an impartial administrative process in which the public office holder plays no part.

No minister of the Crown, minister of state or parliamentary secretary who otherwise has the authority shall permit the public sector entity for which he or she is responsible, or to which he or she is assigned, to enter into a contract or employment relationship with his or her spouse, common-law partner, child, sibling or parent.

No minister of the Crown, minister of state or parliamentary secretary who otherwise has the authority shall permit anyone acting on his or her behalf to enter into a contract or employment relationship with a spouse, common-law partner, child, sibling or parent of another minister of the Crown, minister of state or parliamentary secretary or party colleague in Parliament, except in accordance with an impartial administrative process in which the minister of the Crown, minister of state or parliamentary secretary plays no part.

Subsection (4) does not apply in respect of the appointment of a member of ministerial staff or a ministerial adviser.

This section does not apply to a contract for goods or services offered by a public sector entity on the same terms and conditions as to the general public.

No reporting public office holder shall, except as required in the exercise of his or her official powers, duties and functions,

engage in employment or the practice of a profession;

manage or operate a business or commercial activity;

continue as, or become, a director or officer in a corporation or an organization;

hold office in a union or professional association;

serve as a paid consultant; or

be an active partner in a partnership.

Despite paragraph (1)(a), for the purpose of maintaining his or her employment opportunities or ability to practice his or her profession on leaving public office, a reporting public office holder may engage in employment or the practice of a profession in order to retain any licensing or professional qualifications or standards of technical proficiency necessary for that purpose if

the reporting public office holder does not receive any remuneration; and

the Commissioner is of the opinion that it is not incompatible with the reporting public office holder’s duties as a public office holder.

Despite paragraph (1)(c), a reporting public office holder who is a director or officer in a Crown corporation as defined in section 83 of the Financial Administration Act may continue as, or become, a director or officer in a financial or commercial corporation but only if the Commissioner is of the opinion that it is not incompatible with his or her public duties as a public office holder.

Despite paragraph (1)(c), a reporting public office holder may continue as, or become, a director or officer in an organization of a philanthropic, charitable or non-commercial character but only if the Commissioner is of the opinion that it is not incompatible with his or her public duties as a public office holder.

Nothing in this section prohibits or restricts the political activities of a reporting public office holder.

No public office holder shall personally solicit funds from any person or organization if it would place the public office holder in a conflict of interest.

No reporting public office holder shall, unless otherwise provided in Part 2, hold controlled assets as defined in that Part.

No public office holder shall take any action that has as its purpose the circumvention of the public office holder’s obligations under this Act.

Compliance with this Act is a condition of a person’s appointment or employment as a public office holder.

The following definitions apply in this Part.

assets includes any trusts in respect of which a public office holder or a member of his or her family is a beneficiary. (bien)

controlled assets means assets whose value could be directly or indirectly affected by government decisions or policy including, but not limited to, the following:

publicly traded securities of corporations and foreign governments, whether held individually or in an investment portfolio account such as, but not limited to, stocks, bonds, stock market indices, trust units, closed-end mutual funds, commercial papers and medium-term notes;

self-administered registered retirement savings plans, self-administered registered education savings plans and registered retirement income funds composed of at least one asset that would be considered controlled if held outside the plan or fund;

commodities, futures and foreign currencies held or traded for speculative purposes; and

stock options, warrants, rights and similar instruments. (bien contrôlé)

exempt assets means assets and interests in assets for the private use of public office holders and the members of their family and assets that are not of a commercial character, including the following:

primary and secondary residences, recreational property and farm land and buildings used or intended for use by public office holders or the members of their family;

household goods and personal effects;

works of art, antiques and collectibles;

automobiles and other personal means of transportation;

cash and deposits;

Canada Savings Bonds and other similar investments issued or guaranteed by any level of government in Canada or agencies of those governments;

registered retirement savings plans and registered education savings plans that are not self-administered or self-directed;

investments in open-ended mutual funds;

guaranteed investment certificates and similar financial instruments;

public sector debt financing not guaranteed by a level of government, such as university and hospital debt financing;

annuities and life insurance policies;

pension rights;

money owed by a previous employer, client or partner;

personal loans receivable from the public office holder’s relatives, and personal loans of less than $10,000 receivable from other persons if the public office holder has loaned the moneys receivable;

money owed under a mortgage or hypothec of less than $10,000;

self-administered or self-directed registered retirement savings plans, registered education savings plans and registered retirement income funds composed exclusively of assets that would be considered exempt if held outside the plan or fund; and

investments in limited partnerships that are not traded publicly and whose assets are exempt assets. (bien exclu)

A public office holder shall recuse himself or herself from any discussion, decision, debate or vote on any matter in respect of which he or she would be in a conflict of interest.

A reporting public office holder shall, within 60 days after the day on which he or she is appointed as a public office holder, provide a confidential report to the Commissioner.

The report required under subsection (1) must contain the following:

a description of all of the reporting public office holder’s assets and an estimate of their value;

a description of all of the reporting public office holder’s direct and contingent liabilities, including the amount of each liability;

a description of all income received by the reporting public office holder during the 12 months before the day of appointment and all income the reporting public office holder is entitled to receive in the 12 months after the day of appointment;

a description of all activities referred to in section 15 in which the reporting public office holder was engaged in the two-year period before the day of appointment;

a description of the reporting public office holder’s involvement in philanthropic, charitable or non-commercial activities in the two-year period before the day of appointment;

a description of all of the reporting public office holder’s activities as trustee, executor or liquidator of a succession or holder of a power of attorney in the two-year period before the day of appointment; and

any other information that the Commissioner considers necessary to ensure that the reporting public office holder is in compliance with this Act.

A minister of the Crown, minister of state or parliamentary secretary shall make reasonable efforts to include in the report the information referred to in subsection (2) for each member of his or her family.

A reporting public office holder shall include in the report a description of all benefits that he or she, any member of his or her family or any partnership or private corporation in which he or she or a member of his or her family has an interest is entitled to receive during the 12 months after the day of appointment, as a result of a contract with a public sector entity and the report must include a description of the subject-matter and nature of the contract.

If there is a material change in any matter in respect of which a reporting public office holder is required to provide a confidential report under this section, the reporting public office holder shall, within 30 days after the change, file a report with the Commissioner describing the material change.

If the total value of all gifts or other advantages accepted by a reporting public office holder or a member of his or her family exceeds $200 from any one source other than relatives and friends in a 12-month period, the reporting public office holder shall disclose the gifts or other advantages to the Commissioner within 30 days after the day on which the value exceeds $200.

A reporting public office holder shall disclose in writing to the Commissioner within seven days all firm offers of outside employment.

A reporting public office holder who accepts an offer of outside employment shall within seven days disclose his or her acceptance of the offer in writing to the Commissioner as well as to the following persons:

in the case of a minister of the Crown or minister of state, to the Prime Minister;

in the case a parliamentary secretary, to the minister whom the parliamentary secretary assists;

in the case of deputy heads, to the Clerk of the Privy Council;

in the case of the Parliamentary Budget Officer, to the Speakers of the Senate and the House of Commons; and

in the case of any other reporting public office holder, to the appropriate minister.

If a reporting public office holder has recused himself or herself to avoid a conflict of interest, the reporting public office holder shall, within 60 days after the day on which the recusal took place, make a public declaration of the recusal that provides sufficient detail to identify the conflict of interest that was avoided.

A reporting public office holder shall, within 120 days after the day on which he or she is appointed as a public office holder, make a public declaration of all of his or her assets that are neither controlled assets nor exempt assets.

A minister of the Crown, minister of state or parliamentary secretary shall, within 120 days after the day on which he or she is appointed, make a public declaration with respect to all of his or her liabilities of $10,000 or more that provides sufficient detail to identify the source and nature of the liability but not the amount.

If a reporting public office holder holds a position referred to in subsection 15(2) or (3), the reporting public office holder shall, within 120 days after the day on which he or she is appointed, make a public declaration of that fact.

If a reporting public office holder or a member of his or her family accepts any single gift or other advantage that has a value of $200 or more, other than one from a relative or friend, the reporting public office holder shall, within 30 days after accepting the gift or other advantage, make a public declaration that provides sufficient detail to identify the gift or other advantage accepted, the donor and the circumstances under which it was accepted.

If travel has been accepted in accordance with section 12, from any source, the minister of the Crown, minister of state or parliamentary secretary concerned shall, within 30 days after the acceptance, make a public declaration that provides sufficient detail to identify the source and the circumstances under which the travel was accepted.

A reporting public office holder shall, within 120 days after the day on which he or she is appointed, sign a summary statement containing the information required under subsection (2) and provide it to the Commissioner.

The summary statement must contain the following:

for each controlled asset of the reporting public officer holder, and for each asset of the reporting public office holder that the Commissioner has ordered divested under section 30, a description of the asset and the method used to divest it;

for each matter in respect of which the Commissioner has ordered a reporting public office holder to recuse himself or herself under section 30, a description of the matter and information regarding the process to be put in place by the reporting public office holder and others to effect the recusal; and

for any other matter in respect of which the Commissioner has issued an order to the reporting public office holder under section 30, a description of the matter and the order, and the steps taken to comply with the order.

Subject to subsections (9) and (10), a reporting public office holder shall, within 120 days after the day on which he or she is appointed as a reporting public office holder, divest each of his or her controlled assets by doing one of the following:

selling it in an arm’s-length transaction; or

placing it in a blind trust that meets the requirements of subsection (4).

Subject to subsections (9) and (10), a reporting public office holder shall, within 120 days after the day on which he or she receives controlled assets by way of gift or testamentary disposition or in any other way over which the reporting public office holder has no control, divest the controlled assets in the manner required by subsection (1).

For greater certainty, a reporting public office holder may not divest his or her controlled assets by any measure other than one referred to in subsection (1), including by placing them in a blind management agreement.

The terms of a blind trust must provide that

the assets to be placed in trust shall be registered to the trustee unless they are in a registered retirement savings plan account;

the reporting public office holder shall not have any power of management or control over the trust assets;

the trustee shall not seek or accept any instruction or advice from the reporting public office holder concerning the management or the administration of the assets;

the assets placed in the trust shall be listed on a schedule attached to the instrument or contract establishing the trust;

the term of any trust shall be for as long as the reporting public office holder who establishes the trust continues to hold his or her office, or until the trust assets have been depleted;

the trustee shall deliver the trust assets to the reporting public office holder when the trust is terminated;

the trustee shall not provide information about the trust, including its composition, to the reporting public office holder, except for information that is required by law to be filed by the reporting public office holder and periodic reports on the overall value of the trust;

the reporting public office holder may receive any income earned by the trust, and add to or withdraw from the capital funds in the trust;

the trustee shall be at arm’s length from the reporting public office holder and the Commissioner is to be satisfied that an arm’s length relationship exists;

the trustee must be

a public trustee,

a public company, including a trust company or investment company, that is known to be qualified to perform the duties of a trustee, or

an individual who may perform trustee duties in the normal course of his or her work; and

the trustee shall provide the Commissioner, on every anniversary of the trust, a written annual report verifying as to accuracy the nature and market value of the trust, a reconciliation of the trust property, the net income of the trust for the preceding year, and the fees of the trustee, if any.

Despite subsection (4), general investment instructions may be included in a blind trust instrument or contract but only with the prior approval of the Commissioner. The instructions may provide for proportions to be invested in various categories of risk, but may not be industry-specific, except if there are legislative restrictions on the type of assets that a public office holder may own.

For greater certainty, no oral investment instructions may be given with respect to a blind trust contract or instrument.

A reporting public office holder shall provide to the Commissioner a confirmation of sale or a copy of any contract or instrument establishing the trust in respect of any controlled asset divested under subsection (1).

Unless otherwise required by law, the Commissioner shall keep confidential all information provided by a reporting public office holder relating to a divestment under subsection (1), except the fact that a sale has taken place or that a trust exists.

Subject to the approval of the Commissioner, a reporting public office holder is not required to divest controlled assets that are given as security to a lending institution.

A reporting public office holder who is not a minister of the Crown, a minister of state or a parliamentary secretary is not required to divest controlled assets if, in the opinion of the Commissioner, the assets are of such minimal value that they do not constitute any risk of conflict of interest in relation to the reporting public office holder’s official duties and responsibilities.

The Commissioner shall review annually with each reporting public office holder the information contained in his or her confidential reports and the measures taken to satisfy his or her obligations under this Act.

Before they are finalized, the Commissioner shall determine the appropriate measures by which a public office holder shall comply with this Act and, in doing so, shall try to achieve agreement with the public office holder.

In addition to the specific compliance measures provided for in this Part, the Commissioner may order a public office holder, in respect of any matter, to take any compliance measure, including divestment or recusal, that the Commissioner determines is necessary to comply with this Act.

The Commissioner may order that the following administrative costs incurred by a public office holder be reimbursed:

in relation to a divestment of assets,

reasonable legal, accounting and transfer costs to establish and terminate a trust determined to be necessary by the Commissioner,

annual, actual and reasonable costs to maintain and administer the trust, in accordance with rates set from time to time by the Commissioner,

commissions for transferring, converting or selling assets where determined necessary by the Commissioner,

costs of other financial, legal or accounting services required because of the complexity of the arrangements for the assets, and

commissions for transferring, converting or selling assets if there are no provisions for a tax deduction under the Income Tax Act; and