Advocacy Headlines

B.C. government overhauling real-estate regulatory system

In wake of industry's money-laundering investigations, the province's financial services authority will take over real-estate regulatory oversight from the Office of the Superintendent of Real-Estate and the Real-Estate Council of B.C.

The new BC Financial Services Authority (BCFSA) is to become the single regulator for real-estate. The BCFSA, which officially became a Crown agency on November 1, is already in charge of regulating mortgage brokers, private pension plans and financial institutions.

The B.C. Ministry of Finance said in a statement November 12, “By including real estate regulation within the responsibility of the BCFSA, the Ministry of Finance is simplifying and integrating regulation of the B.C. financial services sector, resulting in increased consumer confidence and opportunities to streamline investigations and enforcement.”

The recommendation to create a single real-estate industry regulator, to prevent problems falling through the cracks, was central to both the Real-Estate Regulatory Structure Review of September 2018 and the Expert Panel on Money Laundering Report of May 2019.

For more information please see the B.C. government’s news release.

What does this mean for franchising?

As the single regulator, the BCFSA will take responsibility over real estate licensing, conduct, investigations and discipline for realtors and real estate companies that operate in BC. Franchised real estate companies must ensure that they are in compliance and should contact the BCFSA directly to ensure they fully understand how the change will impact their business based on their specific business model. Click here to contact the BCFSA.

Federal Cabinet Shuffle on Wednesday – 5 things to watch for

From Global News

Prime Minister Justin Trudeau is set to unveil his new cabinet Wednesday, setting the stage for the opening of Parliament on Dec. 5. Here are five things to watch for:

1)      How many cabinet ministers are there?

When Parliament was dissolved for the election, Justin Trudeau had 34 cabinet ministers. He also had dozens of parliamentary secretaries. But there are fewer MPs to choose from this time around, and a different set of issues percolating on the burner than he had when first elected. A large cabinet brings with it the need for a large number of parliamentary secretaries, but Trudeau needs to leave some power on the benches for parliamentary committees, and also the important roles of government house leader and whip.

2)      What jobs does he give them?

Over his four years of a majority government, Trudeau tinkered around with cabinet portfolios. One high-profile change included the creation of two separate ministries focused on Indigenous issues _ one specifically tasked with Crown-Indigenous relations, and the other on Indigenous Services. Another was to vest in himself the responsibility for the intergovernmental affairs portfolio, but in 2018 he hived that one off to someone else. With federal-provincial relations still tempestuous, that position could be quite high profile. He’d also set up a position specifically to tackle border security and organized crime, partially in response to an influx of asylum seekers at the border. That issue is still live, but taking up less energy these days, while topics like climate resiliency are becoming more pressing.

3)      How he makes up for the losses?

Two cabinet ministers lost their seats on Oct. 21: longtime cabinet member Ralph Goodale from Regina and relative rookie Amarjeet Sohi from Edmonton. With no members of Parliament from either Saskatchewan or Alberta, Trudeau will be looking to find a solution for how to have representation from those two provinces around the cabinet table. He also needs to grapple with the health challenges facing two other ministers, Jim Carr and Dominic LeBlanc, both of whom are undergoing treatment for cancer.

4)      Gender — and racial — balance

The world outside Canada rarely pays attention to the machinations of the government, but in 2015 a quip Trudeau made on his decision to have a gender-balanced cabinet pushed him into the global spotlight. “Because it’s 2015,” he replied when asked why gender balance was important. In the 2015 election, the Liberals elected 50 women and increased that by two in 2019. But while Trudeau’s gender-balanced cabinet drew accolades, he was accused at the time of not going far enough to ensure it reflected the racial diversity of Canada as well. After an election where revelations that Trudeau wore black and brownface as a younger man brought attention to issues of racism at the national level, the pressure is on Trudeau to ensure his cabinet includes more people from diverse ethnic backgrounds.

5)      Who stays and who goes?

Many eyes are on whether Foreign Affairs Minister Chrystia Freeland remains in that post or is re-tasked with another pressing portfolio. Environment Minister Catherine McKenna — who has been outspoken about the harassment and threats of violence she has received in her role — is potentially also up for a shuffle. Trudeau will look to his roster of newly-elected MPs to see if any merit an immediate seat around the table or will be tasked to pay some political dues first as parliamentary secretaries, including Adam van Koeverden, who defeated longtime Conservative Lisa Raitt.

Two new Senate Caucus’ could further complicate the federal minority parliament

The formation of a new Senate blocks could further complicate efforts by Prime Minister Justin Trudeau to pass legislation this winter, adding a new layer of unpredictability to the Canadian Senate. This coupled with the inherent unpredictability in the House of Commons is going to make governing and passing legislation very interesting and complicated. 

Last week, a group of 13 senators banded together to create the Canadian Senators Group (CSG), part of an effort to ensure that various “regional interests” are properly represented in the Senate. According to the news release “Members of the CSG want to see this founding principle maintained and respected so that the will of the majority does not always trump regional interests. CSG Senators are free to take positions and vote on legislation independently of personal political affiliations and each other.” The newly-formed CSG include senators from Alberta, Ontario, B.C., Saskatchewan, Quebec, Nova Scotia, New Brunswick, and Prince Edward Island. Former Conservative Sen. Scott Tannas, who represents Alberta, will serve as interim leader. Quebec Sen. Josée Verner, also a former Conservative, will be deputy leader. Overall, it is made up of centrist or slightly conservative-leaning senators. 

The Progressive Senate Group was created last week when nine former Liberal senators decided to caucus together. With the departure of Percy Downe of PEI today (November 18), they will not have enough members for official status but they have said they will continue to work together and share resources (without being officially recognized).

Senate rules give procedural and administrative advantages, such as committee seats and bigger budgets, to senators who form official caucuses. That has led to loose affiliations such as the Independent Senators Group, whose members don’t necessarily vote together.

Previously, the Senate was divided between a government caucus and an official opposition caucus. Now, with the appointment of independent senators, the Senate is splintering into smaller groups.

Only Conservative senators, who hold 25 of the 105 seats in the chamber, are officially attached to a federal party and work as a bloc.

What does this mean for franchising?

The Senate’s role will become more important over the coming months as the Trudeau Liberals try to get legislation passed by the House of Commons. These factions in the Senate and the minority in the House of Commons will make navigating the legislative process more complicated with many more actors holding real power than was the case in the past. It also means that government and opposition legislative proposals can start in the House of the Senate which will increase the number of people the CFA will have to work with to ensure all federal politicians fully understand and appreciate the importance of franchising to the Canadian economy.

 

 
Upcoming Events

December 5, 2019 - Holiday Luncheon, Brampton, ON
Celebrate the season with the entire franchise community at the CFA Holiday Luncheon at Lionhead Golf Club & Conference Centre! Learn More

May 13, 2020 – Growth and Exit Strategies Conference, Toronto, ON
Maximize the value of your business after years of hard work with the CFA’s first ever, not to be missed, Exit Strategies: Where Franchising Meets Private Equity, Bay Street, and Wall Street. Learn More

 
Upcoming Franchise Canada Shows
January 18 & 19, 2020 – The Franchise Canada Show in Calgary
Meet with quality prospects from Alberta at the official show of the CFA. Learn More
 
February 22 & 23, 2020 - The Franchise Canada Show in Toronto
Meet with quality prospects from Ontario at the official show of the CFA. Learn More

For more information about the CFA's advocacy work and strategy, contact David Black, Director of Government Relations and Public Policy at dblack@cfa.ca