Financial Services

The Costs and Benefits of Canada’s One-Cent Coin to Canadian Tax Payers and the Overall Economy

Date:                 2010
Chair:                Hon. Joseph A. Day (NB)
Deputy Chair:    Hon. Richard Neufeld (BC)
Downloads:       Click here

Summary:
The Senate Committee on National Finance, in this analysis of the penny’s impact on the Canadian economy, recommended that the government cease production of the penny. Canada’s one-cent coin has lost 95% of its purchasing power since it was first produced in 1908. In effect, what used to cost a penny now costs twenty cents. A century of inflation since the coin was first produced has reduced its value, although its cost of production has escalated to 1.5 cents.

Impact:
The federal government announced in March 2012 that it would abolish the penny as of February 4, 2013.


Stemming the Flow of Illicit Money: A Priority for Canada

Date:                  2006 (Interim)
Chair:                 Hon. Jerahmiel S. (Jerry) Grafstein (ON)
Deputy Chair:    Hon. W. David Angus (QC)
Downloads:       Click here

Summary:
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act required Parliamentary review of its administration and operation five years after it came into force (July 5, 2000).  This report outlines the current reporting regime, describes desired upgrades, discusses international dimensions and makes 16 recommendations, including regular Parliamentary oversight of RCMP, FINTRAC and other enforcement agencies.  

Impact:
The government introduced Bill C-25 to update the Act in October 2006.  The Senate passed the bill on December 14 of that year, but observed that it failed to include "independent review of the national security activities of a number of entities, including the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)" as recommended in Stemming the Flow.


Consumer Protection in the Financial Services Sector: The Unfinished Agenda

Date:                  2006
Chair:                 Hon. Jerahmiel S. (Jerry) Grafstein (ON)
Deputy Chair:    Hon. W. David Angus (QC)
Downloads:       Click here

Summary:
This report examines the impact of federal legislation and initiatives designed to protect consumers within the financial services sector.  Topics include the role, corporate governance structure and effectiveness of agencies, ombudspersons and others who play a role with respect to consumer protection; supervision of the financial services sector; and consumer credit rates and reporting agencies.

Impact:
Canada's investment community frequently commented on this report and continues to cite it as a resource. Much of the interest was generated by the Committee's recommendation for a single national securities regulator.  Although the concept has many supporters, including the federal and Ontario provincial governments, it has been resisted by other provincial governments who have moved forward with an alternative harmonization initiative called the Passport System.  


Financial Institution Reform: Lowering the Barriers to Foreign Banks

Date:                  1996
Chair:                 Hon. Michael Kirby (NS)
Deputy Chair:    Hon. W. David Angus (QC)
Downloads:       Click here

Summary:
The Committee reviewed a government White Paper called Review of Financial Sector Legislation, Proposals for Change. The report recommends allowing foreign banks to operate in Canada.

Impact:
Bill C-67 was passed in 1999, amending the Bank Act to allow foreign banks to offer banking services in Canada without having to establish separate subsidiary banks in this country.