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: 2025-12-22 to 2026-01-18

📋 In This Week's Newsletter

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

Federal Government News

Competition Bureau launches study into SME financing sector market dynamics

The Competition Bureau initiated a market study on January 12, 2026, to examine the competitive landscape in the financing sector for small and medium-sized enterprises in Canada. Following the Minister of Industry’s approval of the terms of reference, the Bureau will assess barriers faced by new and innovative lenders, as well as obstacles to market entry and expansion for existing players. Officials are soliciting input from businesses and consumers with experience in SME financing, and the study aims to identify options for businesses to more readily switch lenders. The deadline for public submissions is February 27, 2026, with a final report to be published later that will include findings and recommendations for enhancing competition in SME financing. The study follows a prior public consultation phase and is expected to shape future policy initiatives related to credit access and lending services.

Sources: www.canada.ca

Competition Bureau publishes report quantifying consumer savings from data portability

On January 15, 2026, the Competition Bureau released a report projecting that the implementation of a consumer data portability framework could result in annual cost savings between $1.1 billion and $3.8 billion for Canadians within the insurance sector. The study considers two channels of benefit: lower insurance premiums through easier switching, and reduced time spent by consumers on comparing providers. The report identifies trust in oversight bodies, strong privacy protection, clear consent processes, and interoperability between platforms as key components for introducing Canadian data portability standards. International approaches, including UK open banking and Australia’s Consumer Data Right, are referenced as case examples. The Bureau’s analysis intends to inform future frameworks beyond insurance, with further applicability to broader financial services involving digital authentication and open banking.

Sources: www.canada.ca

FCAC and GRI release interim report from Financial Industry Forum on Artificial Intelligence workshop

The Financial Consumer Agency of Canada and the Global Risk Institute issued an interim summary on December 22, 2025, following their November workshop focused on AI adoption within financial services. The event, attended by more than 55 representatives from major banks, technology firms, law offices, academics, and consumer advocacy groups, addressed evolving risks in AI, practices for consumer protection, and cybersecurity concerns. This fourth workshop in the ongoing FIFAI II series included discussions of AI’s impact across banking, payment modernization, and risk management in federally regulated institutions. Interim reports on security, financial crime, and stability are available, with the complete findings from all workshops expected in spring 2026. The initiative represents a continued cross-sector effort by regulators to assess implications for digital authentication, anti-money laundering, cybersecurity, and consumer empowerment.

Sources: www.canada.ca

Competition Bureau to host technical briefing on data portability findings

The Competition Bureau scheduled a technical briefing for January 15, 2026, to review its research into the economic impact of data portability for Canadians. Officials will present methodology and key findings, using the insurance industry as a primary case. This briefing will detail frameworks and factors pertinent to implementing data portability within Canadian financial services. Media with interest in data privacy, interoperability, and regulatory oversight were invited to attend; material from the event will be made available for broadcast use. The Bureau’s event follows the publication of a formal report highlighting benefits for consumers and market competitiveness.

Sources: www.canada.ca

Minister McKnight to announce investment supporting clean technologies in Delta, BC

On January 14, 2026, the Honourable Jill McKnight will formally welcome a substantial clean economy investment in Delta, British Columbia, on behalf of the federal Minister of Finance and National Revenue, François-Philippe Champagne. The announcement event, featuring a facility tour after a media availability, is scheduled for January 15, 2026, at 10:00 a.m. PST. This federal engagement signals ongoing capital flows into Canada’s clean tech sector and may pertain to related tax and finance measures affecting institutional investors and insurers. Further logistical details are available to registered attendees through the Department of Finance.

Sources: www.canada.ca

2026 automobile tax deduction and benefit limits set by Department of Finance

Effective January 1, 2026, the Department of Finance Canada announced revisions to various automobile-related income tax deduction parameters and prescribed rates. The capital cost allowance ceiling for Class 10.1 passenger vehicles increased from $38,000 to $39,000 before tax for vehicles acquired in 2026, while tax-exempt per-kilometre allowances rose by one cent in both provinces and territories for the initial and subsequent distance intervals. The relevant deduction limits for leases, interest payments, and zero-emission passenger vehicles remain unchanged. The prescribed rates of taxable benefits for employees using company vehicles remain fixed for both general and auto sales/leasing roles. These updates influence expense accounting in institutional portfolios and retail lending related to auto finance.

Sources: www.canada.ca

Statistics Canada releases Q3 2025 non-bank mortgage lender survey dataset

On January 16, 2026, Statistics Canada published third quarter 2025 data on non-bank mortgage lenders. The dataset provides industry participants with a detailed quantitative resource for analyzing trends in non-bank mortgage origination, loan sizes, default rates, and lender capitalization. Asset managers and mortgage brokers can utilize the updated figures to refine market assessments and benchmark sector performance against federally regulated institutions. The data supports ongoing transparency in asset-backed lending and liquidity conditions throughout Canada’s mortgage landscape.

Sources: www.statcan.gc.ca

Canada’s international transactions in securities show continued net foreign investment

Statistics Canada reported, on January 16, 2026, that foreign investors added $16.3 billion in Canadian debt and equity securities holdings during November, following an October inflow of $46.6 billion. Canadian investors acquired $16.5 billion in foreign securities, offsetting a prior October divestment of $11.6 billion. The figures reflect robust participation in global financial markets and inform treasury, liquidity, and risk management decisions for banking and investment firms with cross-border exposure. Detailed monthly transactional data serve as benchmarks for capital flows and balance sheet planning.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario implements new regulations and statutes effective January 1, 2026

Ontario introduced notable regulatory changes affecting pension plans, insurance disclosures, investment management, and licensing renewals, among other areas, as of January 1, 2026. Amendments under various Acts address pension transitions for MPPs, clearer cost disclosures for segregated funds, and new digital delivery options for property assessments.

Sources: news.ontario.ca

Manitoba allocates $644,000 from Criminal Property Forfeiture Fund to Winnipeg Police initiatives

On December 23, 2025, the Manitoba government announced support for specialized police training and public safety initiatives, using funds sourced from seized criminal assets. Allocations include new equipment, training, and outreach with indirect relevance for insurance claims and risk assessment in property and casualty products.

Sources: news.gov.mb.ca

British Columbia opens Disaster Financial Assistance for flooding-impacted individuals and businesses

As of January 14, 2026, Disaster Financial Assistance became available for communities and businesses impacted by December 2025 flooding in southwestern BC, with reimbursement caps set at $400,000. Online applications and expanded eligibility could affect insurance portfolios and loss recovery practices.

Sources: news.gov.bc.ca

Quebec launches 2026-2027 pre-budget consultations

On January 8, 2026, the Quebec Ministry of Finance opened its annual pre-budget consultations, inviting input from businesses and sector organizations. This recurring exercise informs provincial fiscal policy and may affect regulatory priorities for financial services operating in Quebec.

Sources: www.quebec.ca

What We're Reading This Week

• Opinion: As Ottawa embraces stablecoins, regulator warns of financial crime risks: Commentary on regulatory considerations surrounding stablecoin adoption in Canada.
• Business Brief: Behind the big deals on Bay Street: An overview of recent major transactions in the Canadian investment banking sector.
• Business Brief: The best and worst of investing in 2025: Analysis of investment performance for Canadian markets over the last year.
• 'May the best product and business win.' Koho Financial's CEO on hoping for bank status this year: Profile on Koho Financial and its ambitions for chartered bank status.
• Canadian Businesses Rank Legislation and Regulation Changes as Top Risk in 2026: Allianz Risk Barometer: Canadian firms position regulatory change as the foremost business risk for 2026.
• From breach to boardroom: humanizing cyber insurance: Exploration of the operational impacts of cyber insurance in response to rising data breach incidents.
• Malaysia’s financial scandal: 1MDB: International look at financial scandal affecting Malaysia’s banking sector.

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