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Pensions Regulator announces changes to the DC scheme return for 2024
The Regulator has issued an online announcement about upcoming changes to its DC scheme return.
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Canada | Publication | December 16, 2022
On December 7, the Minister of Innovation, Science and Industry (the Minister) announced comprehensive proposed amendments to the Investment Canada Act (the ICA) in Bill C-34. The Minister released a corresponding backgrounder on the proposed amendments and committed to strengthening Canada’s national security review process to better mitigate the potential security threats that can be posed by foreign investment. There is currently no proposed timetable for the progress of Bill C-34, but the government has indicated there will likely be a consultation process for any related regulations that are proposed. Bill C-34 will be debated and reviewed further in the House of Commons and Senate before it becomes law.
Key features of the proposed amendments include the following:
Notifications required for investments in prescribed business sectors
Ministerial authority to extend national security reviews
Interim conditions can be imposed during national security reviews
Ministerial authority to accept undertakings to mitigate national security risk
Information sharing with international counterparts
Penalties for non-compliance with the ICA
Other proposed amendments
Under the transitional provisions in Bill C-34, the new provisions (once in force) will apply to all investments being reviewed under the ICA at the time the amendments are enacted. However, many aspects of the proposed amendments remain undefined and clear guidance is needed regarding how certain amendments will be applied once enacted (for example, how penalties for non-compliance will be applied and how the information sharing powers will operate in practice).
In our view some of the new powers granted should also be subject to limitations – for example, the Minister’s authority to impose interim conditions during a national security review should be restricted to circumstances where there is a clear national security risk. While the government’s desire to amend Canada’s foreign investment review framework responds to evolving national security concerns, it is critical to ensure these changes are accompanied by appropriate guidance to avoid having a chilling effect on foreign investment in Canada.
The proposed amendments are the most substantive changes to the ICA in over a decade. If enacted as is, these amendments will likely result in the government reviewing more investments prior to closing and having greater authority over national security reviews. However, the department responsible for administering the ICA is significantly understaffed and the proposed amendments are likely to only exacerbate this problem unless additional resources are provided.
Norton Rose Fulbright is actively monitoring developments in this area, and we will provide more detailed analysis on possible amendments to the ICA as this process evolves.
Publication
The Regulator has issued an online announcement about upcoming changes to its DC scheme return.
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