Canada: Canada´s Federal Accountability Act and Its Impact on Lobbying

Last Updated: August 28 2006
Article by Sean Moore

Canada is about to significantly increase the reporting requirements for all corporate and consulting lobbyists active at the federal level as the new Conservative Government's top legislative priority is one step closer to a fait accompli with the approval by the House of Commons to what the Harper Administration calls the Federal Accountability Act. (FAA).

Formally entitled " Bill C-2, an Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability."), the FAA was passed by the House of Commons on June 21. It now is off to the Senate which will undertake more than a week of hearings on the legislation in mid-September.

The FAA provides for a new Lobbying Act which will replace the 17 year old federal Lobbyists Registration Act . The new lobbying law will require consultant lobbyists, as well as corporations and associations that have their own in-house registered lobbyists to report the particulars of all communications with those deemed Senior Public Office Holders (i.e. Ministers, ministerial political staff, Deputy Ministers and Associate and Assistant Deputy Ministers - but, notably, not MPs, Senators or mid-level bureaucrats). Under the current law, individual politicians, political staff and bureaucrats contacted by lobbyists do not need to be identified by name and only twice-yearly registration updates are required.

The FAA creates for the fist time a legislative regime governing the ethical conduct of public office holders, both during and after employment. It introduces much tougher post-employment restrictions on former government officials. Former "Senior Public Office Holders" (including members of any government "transition team") will be prohibited from acting as lobbyists for five years following their departure from government service.

The Act finishes the job started two years ago when the previous administration moved to significantly reduce what corporations and unions can spend on political donations. The FAA's amendments to the Canada Elections Act will entirely prohibit all manner of cash and in-kind donations by corporations, unions and associations to candidates, political parties and party leadership aspirants at the federal level. (Two Canadian provinces , Manitoba and Quebec , similarly ban corporate and union political donations.) Maximum personal political donations are also being further reduced from $5400 per party per year to a maximum of $1000 per calendar year to each political party, leadership contestant, nomination contestant, or candidate or a particular party

The FAA also creates a number of new independent "officers of Parliament" all of whom will be vested with substantial investigatory powers. For example, the new Commissioner of Lobbying will be empowered to investigate any and all allegations of non-compliance with the Lobbying Act . Those found guilty of an offence under the Act could face maximum fines of $200,000, up to two years of jail time in addition to having their right to be a registered lobbyist suspended for up to two years. The new law also prohibits the use of contingency (or "success") fees by lobbyists at the federal level.

The Federal Accountability Act also makes substantial changes to the country's Access to Information Act, broadening its reach to include several large Canadian Crown corporations and federal foundations which were previously exempt from the ATI law.

It also broadens the scope of powers and range of activities for the Auditor General of Canada. For example, the Auditor General will be able to to audit recipients of government funding (i.e. grants and contributions to corporations, non-profit groups and charities). The new legislation also creates the position of Procurement Auditor whose duties include reviewing fairness, openness and transparency in departmental procurement practices and reviewing complaints regarding the awarding or administration of contracts.

The part of the FAA with the greatest significance for - and potential impact on - corporations and others who lobby the federal government is the new reporting requirement concerning contact with senior government officials.

"Senior Public Office Holders" (SPOHs - Ministers, their political exempt staff, Deputy Ministers, Associate and Assistant Deputy Ministers) are likely to be motivated to have fewer meetings and less overall contact with "lobbyists" and others who communicate with them on public-policy matters. With the new requirement that registered lobbyists must report monthly (to a searchable data-base) all their "planned" communications with senior public office holders, those SPOHs will be mindful that such postings will undoubtedly prompt a wide variety of competing groups to insist on the same opportunity to meet with SPOHs. In many cases, the tendency will be to instruct lower level officials (i.e. Directors-General, Directors etc) to take meetings with officials in lieu of SPOHs.

For many companies and industry associations, the FAA's provisions are necessitating an overall reconsideration of how they manage their relationships with the Government of Canada and how they engage in public-policy advocacy.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions