The
Conflict of Interest Act prohibits federal reporting public office holders (RPOHs) from acquiring and holding controlled assets during the term of their office. Within 120 days of becoming a public office holder, a federal RPOH must divest his or her controlled assets by either selling them in an arm's length transaction or placing them in a blind trust.1
Federal RPOHs include:
- The Prime Minister;
- Cabinet Ministers;
- Ministers of State;
- Parliamentary Secretaries;
- Full-time and salaried Cabinet appointees, including deputy ministers and many heads of agencies;
- Ministerial advisers; and
- Ministerial staff who work more than 15 hours per week.2
Controlled assets are those assets whose value could be directly or indirectly affected by government decisions or policy. They include, but are not limited to:
- Publicly traded securities of corporations foreign governments;
- Self administered RRSPs and RESPs;
- RIFFS composed of at least one asset that would be considered controlled if held outside the plan or fund;
- Commodities, futures and foreign currencies; and
- Stock options, warrants and rights.3
It is important to note that MPs and their staff are not federal RPOHs and, as such, they are not obligated under the
Conflict of Interest Act to divest their financial holdings by selling them or placing them in a blind trust. The
Conflict of Interest Code for Members of the House of Commons also does not have a divestment requirement for MPs.
However, if the Conflict of Interest Commissioner is of the opinion that an MP's holding in a publicly traded company is so significant that it may affect their obligations under the
Code, the Member of Parliament can remain in compliance with the
Code by placing these securities in a blind trust.4
MPs may also request an opinion from the federal Conflict of Interest Commissioner regarding their obligations under the
Code, including as they relate to their investments.5
