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: 2025-12-14 to 2025-12-20

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal Government News
• 🗺️ Canadian Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Canadian Federal Government News

Government Transfers Surplus From Public Service Pension Fund

President of the Treasury Board Shafqat Ali announced that the federal public service pension fund, with a funded ratio of 125.5% and an excess surplus of approximately $0.9 billion as of March 31, 2025, will transfer the non-permitted surplus to the Consolidated Revenue Fund. This action follows the Special Actuarial Report tabled in the House of Commons and reflects the pension fund's strong market performance. Once transferred, the fund returns to a permitted surplus position, in line with the Public Service Superannuation Act, which requires action if plan assets exceed 125% of liabilities. Budget 2025 estimates, including early retirement programs, have been incorporated into the actuarial calculations, but discussions with stakeholders on next steps regarding the transferred surplus are still anticipated. The federal government continues to guarantee the pension plan and is required to provide additional funding if the plan becomes underfunded. Federal public sector pensions remain outside the scope of collective bargaining.

Sources: www.canada.ca

Canada Closes G7 Finance Track with Focus on Financial Crime, Ukraine, and Crisis Resilience

Minister of Finance François-Philippe Champagne and Bank of Canada Governor Tiff Macklem co-chaired the final G7 Finance Ministers and Central Bank Governors meeting of Canada’s presidency on December 19. The year-long presidency featured support for Ukraine, coordinated international sanctions, and the approval of the G7 Financial Crime Call to Action. Notable outcomes included expanded information-sharing across the G7, increased vigilance against emerging risks, and the launch of the Forum for Crisis Resilience (in partnership with the World Bank Group) as a three-year effort for crisis preparedness in smaller and vulnerable countries. Canada highlighted achievements from the Banff ministerial, endorsed policies to foster a stable financial sector, and supported the expansion of World Bank-led supply chain partnerships. France will take over the G7 presidency in January, with Canada having actively included several non-G7 partners in meetings throughout 2025.

Sources: www.canada.ca

Federal Loan Supports Ekati Diamond Mine Amid Trade Disruptions

Finance Minister Champagne committed a $115 million loan to Arctic Canadian Diamond Company Ltd., which operates the Ekati Diamond Mine in the Northwest Territories, in response to persistent trade barriers, tariffs, and declining global diamond prices. The loan, extended through the Large Enterprise Tariff Loan facility, is intended to maintain operations and jobs in a sector that represents close to 20% of the territory’s GDP and employs over 1,000 people. The announcement noted ongoing federal collaboration with the territorial government and local organizations on economic diversification, recognizing the concentration risk as several mines near end of life.

Sources: www.canada.ca

Canada Finalizes Selection of Canadian Climate Institute to Develop Sustainable Investment Guidelines

The Department of Finance has selected the Canadian Climate Institute to lead the development of voluntary, science-based sustainable investment guidelines (taxonomy) in cooperation with Business Future Pathways. The taxonomy aims to provide Canadian investors and lenders with a standardized framework for identifying 'green' and 'transition' investments consistent with international best practices. Immediate next steps include the creation of an independent Taxonomy Council and sector-specific working groups, with guidelines for three priority sectors expected by the end of 2026. Stakeholder engagement will include financial sector, academic, and industry participation. This work is positioned to support the broader flow of domestic and international capital into Canada’s emerging low-carbon economy.

Sources: www.canada.ca

Project CHICKADEE Dismantles Major Vehicle Export Crime Syndicate with FINTRAC Support

Law enforcement agencies, led by the OPP and Canada Border Services Agency, concluded a multi-jurisdictional investigation (Project CHICKADEE) into international auto theft and money laundering. The operation resulted in the recovery of 306 stolen vehicles worth approximately $25 million and the arrest of 20 individuals charged with 134 offences including smuggling, financial crime, and participation in a criminal organization. Investigators identified fraudulent freight forwarding businesses and seized cash, firearms, electronic devices, and property. FINTRAC provided key financial intelligence to uncover laundering mechanisms, and the OPP Provincial Asset Forfeiture Unit is pursuing asset seizure measures. Ports in Montréal, Vancouver, and Halifax were involved as points of intercepted export.

Sources: www.canada.ca

Minister Champagne Engages Key European Partners on Trade, Defence, and Innovation

During a December visit to France, the UK, and Germany, Minister Champagne advanced Canada’s trade and investment priorities. In France, the Minister participated in the launch of the Haut-Conseil des Affaires Canada–France and at the Conference of Paris, focusing on strengthening bilateral business relations, clean energy, critical minerals, and innovation. The Minister noted the decision of European AI firm ChapsVision to establish operations in Montreal and attended events with Government of Canada bond investors and primary dealers. In Berlin, Champagne spoke at Volkswagen Group Connect, referencing the company’s St. Thomas, Ontario investment as pivotal for the Canadian EV supply chain. Engagements with British and German finance officials and the OECD completed the mission.

Sources: www.canada.ca

StatsCan: Foreign Investors Increase Canadian Securities Holdings by $46.6 Billion in October

Statistics Canada reported that foreign investors added $46.6 billion in Canadian securities to their portfolios in October 2025, marking the highest net investment since March 2022. Concurrently, Canadian investors reduced their holdings of foreign securities by $11.6 billion, the first such divestment recorded since January 2025.

Sources: www.statcan.gc.ca

New Credit Aggregates and Wholesale Services Price Data Released

Statistics Canada has published October 2025 monthly credit aggregate figures and the Wholesale Services Price Index for Q3 2025. These datasets provide updated insights on credit trends and wholesale pricing, relevant for institution-level and sectoral benchmarking.

Sources: www.statcan.gc.ca, www.statcan.gc.ca

Canadian Provincial Government News

AMF Announces 2026 Annual Fee Adjustments in Quebec

The Autorité des marchés financiers (AMF) will adjust annual and other fees across insurance, securities, deposit, and derivatives sectors by up to 2.4% effective January 1, 2026, reflecting the change in the Quebec consumer price index and sector-specific legislation.

Sources: www.quebec.ca

Ontario Backs Toronto Bid to Host Defence, Security and Resilience Bank

The Ontario government is supporting Toronto’s candidacy to host the multilateral Defence, Security and Resilience Bank, designed as a lending institution for NATO member projects. The DSRB’s presence in Toronto would potentially create 3,500 direct skilled jobs and facilitate access to global financial services.

Sources: news.ontario.ca

British Columbia Introduces Restricted Insurance-Agent Licence for Add-On Insurance Sales

BC will require new restricted insurance-agent licensing for sales of add-on insurance related to electronics, construction equipment, and other products by early 2027. The Insurance Council of BC will develop the core regulations, with broader compliance and consumer clarity mandated as oversight expands.

Sources: news.gov.bc.ca

Quebec Updates Tax System: Investment Project Holiday and Tax Credits

The Government of Quebec has made adjustments to the provincial tax system, revising terms for the investment tax holiday, refundable tax credits for internships, and caregiver credits. Details are published in Information Bulletin 2025-9.

Sources: www.quebec.ca

Alberta Next Panel Report Includes Recommendations on APP, Taxation, Policing, and Senate Reform

The Alberta Next Panel released seven recommendations to the provincial government addressing issues such as the Alberta Pension Plan, provincial tax collection options, equalization reform, and constitutional amendments. No implementation decisions have been made.

Sources: www.alberta.ca

Government Consultations

Federal Consultation Launched on Driving Effective Carbon Markets

Environment and Climate Change Canada opened a consultation on December 18 to seek feedback on strengthening Canada’s carbon market benchmark, with submissions accepted until January 30, 2026.

Sources: www.canada.ca

What We're Reading This Week

• Opinion: Two typhoons just exposed how brittle our cashless future really is: Recent natural disasters in Asia highlight vulnerability in digital-only banking systems.
• Why Canada is no country for small banks: Review of challenges for smaller banks in a market dominated by large financial institutions.
• Brookfield’s 2026 Investment Outlook: A Defining Moment for Global Markets: Brookfield projects major shifts in global market conditions over the coming year.
• Class Action Lawsuit Filed Against CIBC and RBC for Alleged Market Manipulation: Grant & Eisenhofer files class action against Canadian banks involving Quantum BioPharma.
• Global financial crime auditors visit Canada after record bank fine: International auditors review Canadian banks following significant regulatory penalties.
• The Allstate Foundation of Canada: Helping people overcome barriers to financial independence: Overview of recent philanthropic efforts addressing financial inclusion.

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