Hon. Marty Deacon: Would the senator take a question?

Senator Wells: I will. Thank you.

Senator M. Deacon: Thank you for picking up the ball on this again and bringing it back to us to give it some thought.

My question is around the legal language in the bill and concerns around amendments to section 40 of the Pension Benefits Standards Act, 1985. The bill changes the language to say, as you mentioned:

The Superintendent shall . . . submit to the Minister a report on . . .

(b) the success of pension plans in meeting the funding requirements, determined in accordance with section 9, and the corrective measures taken or directed to be taken to deal with any pension plans that are not meeting the funding requirements.

Does this section give the superintendent power to compel these corrective measures to be taken, such as freezing dividend payments until a pension fund is solvent again, or is it up to the company in question whether they will take these steps or not?

Senator Wells: Thank you for your question, Senator Deacon.

The Superintendent of Financial Institutions is an arm’s-length federal regulator. Of course, regulators have laws enacted to permit regulations to be developed, and this is the supervisor or the superintendent of those regulations.

The Superintendent of Financial Institutions regulates financial institutions — banks, creditors and others. The rules under which they have to act are the regulations. The superintendent, on breach of regulations — and I’m fortunate enough to have been head of a federal regulator at one time, so I know how it works — if they don’t act in accordance with the regulations, penalties can be imposed. In that respect, they are compelled and can be compelled by the regulations.

Very often, because you might be dealing with a financial institution, the financial institution will know immediately what the regulations are and what their obligations are.

Can they be compelled? Yes, they can be compelled, but they’re compelled by the regulations that they’ve signed onto in their licensing.

Hon. Marty Deacon: Would the senator take a question?

Hon. Marty Deacon: Would Senator Plett take a question?