Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity.

Dates: 2025-08-10 to 2025-08-16

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📚 What We're Reading This Week

Canadian Federal GR News

Finance Canada Releases Draft Legislation on Tax and Financial Measures for Consultation

The Department of Finance published draft legislative proposals introducing a broad set of tax measures for consultation until September 12, 2025. The proposals seek to expand the definition of eligible small business corporation shares and ease the requirements for capital gains rollover on business investments, as previously outlined in the 2024 Fall Economic Statement. A $10 million capital gains exemption is proposed for qualifying business sales to worker co-ops, alongside technical changes for sales to employee ownership trusts. Amendments would adjust the annual expenditure threshold for the 35% Scientific Research and Experimental Development (SR&ED) investment tax credit and make certain credits refundable for small public corporations. The legislation also introduces enhanced reporting for non-profit organizations and would implement the OECD’s Crypto-Asset Reporting Framework, together with changes to the Common Reporting Standard. The Canada Revenue Agency (CRA) would receive expanded audit powers and new penalties for non-compliance. Exemptions to the EIFEL (excessive interest and financing expenses limitation) rules are included for debt related to residential rental and regulated utilities. Additional technical changes are offered to align tax law with policy goals. Concurrently, proposed amendments to the Excise Tax Act would restrict input tax credits for redeemed coupons, effective August 16, 2025, with these changes responding to a Federal Court of Appeal ruling.

Sources: Announcements: www.canada.ca

Trade Tribunal Maintains Injury Review for Dumped Chinese Thermal Paper Rolls

The Canadian International Trade Tribunal determined on August 11, 2025, that dumping and subsidizing of thermal paper rolls from China have caused a reasonable indication of injury to Canadian producers, under the Special Import Measures Act. This finding follows the initiation of investigations by the Canada Border Services Agency, and preliminary determinations are due by September 10, 2025. The ongoing case could affect tariff arrangements, supply chain costs, and procurement decisions for firms relying on thermal paper rolls in Canadian operations.

Sources: Announcements: www.canada.ca

Federal Amalgamation Proposed for ABCU and Innovation Credit Unions

Notices in the August 16 edition of Canada Gazette, Part I, document ABCU Credit Union Ltd. and Innovation Federal Credit Union’s intention to file a joint application for continuance and amalgamation under the Bank Act, planning to operate as 'Innovation Federal Credit Union' with headquarters in Swift Current, Saskatchewan. Should approval be granted by the Minister of Finance, effective date would be April 1, 2026, subject to the established regulatory review process. Written objections may be submitted to the Office of the Superintendent of Financial Institutions by September 16, 2025.

Sources: Gazette, Part I: www.gazette.gc.ca

Aviva Canada Seeks Federal Amalgamation Across Insurance Subsidiaries

Aviva Insurance Company of Canada, together with Traders General Insurance Company, Elite Insurance Company, and Pilot Insurance Company, published notice of their intent to amalgamate as 'Aviva Insurance Company of Canada.' The proposed effective date is January 1, 2026, pending Minister of Finance approval. The head office would be in Toronto, Ontario, and the move is subject to the standard Insurance Companies Act review.

Sources: Gazette, Part I: www.gazette.gc.ca

US Federal GR News

White House Orders Review of Banking 'Debanking' and Reputation Risk Practices

An executive order issued August 7, 2025, directs US federal banking regulators to remove 'reputation risk' and other criteria that may lead to 'politicized or unlawful debanking'. The order, published in the Federal Register on August 12, requires agencies including the Small Business Administration and members of the Financial Stability Oversight Council to revise guidance, identify institutions that may have engaged in such debanking, and consider regulatory changes. Banking institutions must undertake reviews to reinstate or notify affected customers. The Treasury Department will develop a strategy to address regulatory and legislative options within 180 days. The order follows longstanding controversy over regulator actions and potential bias in banking services.

Sources: U.S. Federal Announcements: www.federalregister.gov

Executive Order Seeks Expanded 401(k) Access to Alternative Assets

On August 7, 2025, President Trump signed Executive Order 14330 instructing the Department of Labor to reexamine, within 180 days, existing regulatory guidance on fiduciary duties governing retirement plan asset allocations in alternative assets. The order defines such assets broadly, including private equity, real estate, digital assets, commodities, and infrastructure investments. The Labor Department is directed to clarify fiduciary criteria, potentially develop safe harbors, and propose new rules to support access, while curbing ERISA litigation risk. The SEC is also instructed to evaluate adjustments to accredited investor and qualified purchaser standards to facilitate participation by defined-contribution plan participants.

Sources: U.S. Federal Announcements: www.federalregister.gov

Royal Bank of Canada Receives Conditional Five-Year DOL Exemption for ERISA Asset Management

The US Department of Labor granted an individual exemption allowing Royal Bank of Canada and its affiliates to continue relying on Prohibited Transaction Exemption 84-14 (QPAM Exemption) for managing ERISA plan assets, following a French conviction of an RBC Bahamas subsidiary for aiding and abetting tax fraud. Effective from the earlier of September 5, 2025, or publication, through March 4, 2030, the exemption mandates periodic independent audits, specific compliance policies, plan fiduciary notifications, indemnification of covered plans for actual losses, and explicit disclosure of limitations tied to the conviction. Relief does not extend to other future violations. The exemption addresses default and transition risks for ERISA plan clients with exposure to RBC-managed products.

Sources: U.S. Federal Announcements: www.federalregister.gov

Northern Trust Affiliated Entities Granted DOL Exemption Following Foreign Conviction

Northern Trust Corporation and affiliates have been granted a US Department of Labor exemption to continue their QPAM-based business with ERISA-covered plans and IRAs until March 4, 2030, notwithstanding the conviction of Northern Trust Fiduciary Services (Guernsey) Limited for tax fraud in France. Conditions require exclusion of the convicted firm from discretionary asset management, independent biennial audits, notification of clients, and full indemnification of covered plans against losses from future violations. Policy enhancements and training obligations are stipulated as ongoing obligations for Northern Trust QPAMs.

Sources: U.S. Federal Announcements: www.federalregister.gov

SBA Proposes Expanded Compliance Reporting for SBIC Critical Technologies Program

The Small Business Administration announced a new 60-day public comment period for compliance and reporting requirements applicable to Small Business Investment Companies licensed under the SBIC Critical Technologies Initiative. The proposed rules, detailed in forms 1030 and 1032, would require quarterly and annual reporting on foreign ownership, control or influence (FOCI), and detailed disclosures of investment activities. The reporting schedule is every 45 days following quarter end and 90 days after year end. The initiative is operated in partnership with the Department of Defense Office of Strategic Capital and aims to channel private capital into businesses supporting critical technologies relevant to US national security.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Ontario Launches $1 Billion Protect Ontario Financing Program for Tariff-Affected Sectors

The Ontario government introduced the Protect Ontario Financing Program, making up to $1 billion in loan support available for businesses in steel, aluminum, and auto sectors impacted by US tariffs, with eligibility screening and third-party administration.

Sources: Provincial Announcement: news.ontario.ca

Ontario Maintains 2025–26 Deficit Projection; Green Bond Issuance Cited

Ontario's first quarter fiscal update confirms that the province's projected deficit and borrowing program remain steady, with a net debt-to-GDP ratio of 37.9% and significant progress on Green Bond issuance and completion of 2025–26 borrowing targets.

Sources: Provincial Announcement: news.ontario.ca

Saskatchewan FCAA Issues Investor Alert on Florence Trade Registration Status

The Financial and Consumer Affairs Authority of Saskatchewan released an investor alert regarding Florence Trade, which is not registered to offer securities or derivatives in Saskatchewan.

Sources: Provincial Announcement: www.saskatchewan.ca

What We're Reading This Week

• Forming good financial habits as a student can keep debt from spiraling: On measures and education needed to help students avoid excessive debt accumulation.
• Ontario regulator shuts down iPro Realty after finding $10-million shortfall in trust accounts: A real estate brokerage in Ontario has its operations halted due to a significant trust account discrepancy.
• Wealthsimple asks Ottawa to review rising bank transfer fees: Wealthsimple petitions for federal scrutiny of bank-to-bank transfer costs.
• Financial firms file for eviction more than any other Toronto landlord, new research finds: Financial institutions are identified as leading sources of residential eviction filings in Toronto.
• Rogers selling data centres to InfraRed Capital Partners to pay down debt: Rogers moves to reduce leverage through an asset sale transaction.
• ATB Financial signs deal to acquire independent investment bank Cormark Securities: Alberta’s ATB Financial expands its investment banking operations through acquisition.

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