Conflict of Interest Act — C-36.65 27
Divestment on appointment 27 (1) 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: (a) selling it in an arm’s-length transaction; or (b) placing it in a blind trust that meets the requirements of subsection (4). Divestment of gift or bequest (2) 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). Prohibition on blind management agreement (3) 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. Blind trust requirements (4) The terms of a blind trust must provide that (a) the assets to be placed in trust shall be registered to the trustee unless they are in a registered retirement savings plan account; (b) the reporting public office holder shall not have any power of management or control over the trust assets; (c) 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; (d) the assets placed in the trust shall be listed on a schedule attached to the instrument or contract establishing the trust; (e) 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; (f) the trustee shall deliver the trust assets to the reporting public office holder when the trust is terminated; (g) 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; (h) 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; (i) 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; (j) the trustee must be (i) a public trustee, (ii) a public company, including a trust company or investment company, that is known to be qualified to perform the duties of a trustee, or (iii) an individual who may perform trustee duties in the normal course of his or her work; and (k) 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. General investment instructions (5) 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. No oral instructions (6) For greater certainty, no oral investment instructions may be given with respect to a blind trust contract or instrument. Confirmation of sale or trust (7) 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). Inf