Alberta Record

· Order in Council / AIMCo governance reset · in-force

Oic aimco governance reset

This Order in Council rescinds one appointment and appoints five new members, including the chair, to the board of directors of the Alberta Investment Management Corporation.

High impactInstitutional independenceCentralization of powerThe public, directlyIndependent watchdogs

What changed

  • The appointment of the Honourable Nate Horner, President of Treasury Board and Minister of Finance, as a member of the Alberta Investment Management Corporation (AIMCo) board of directors is rescinded.
  • The Right Honourable Stephen J. Harper is appointed as a member and designated chair of the AIMCo board of directors for a term expiring November 19, 2027.
  • James Keohane, Jason Montemurro, Navjeet Singh Dhillon, and Katherine White are appointed as members of the AIMCo board of directors, each for a term expiring November 19, 2027.
  • Order in Council 298/2024 is rescinded.
  • The Alberta Capital Finance Authority is removed from Schedule B of the Funds and Agencies Exemption Regulation.
  • The Heritage Fund Opportunities Corporation (HFOC) is added to Schedule C of the Funds and Agencies Exemption Regulation.
  • HFOC is exempted from specific sections of the Financial Administration Act (FAA): 21, 22, 33(2), 37, 38, 42(5), 57.1, 78, 79, 81, and 83.
  • Subsidiaries of HFOC, meeting specific criteria related to Crown investment and investment management services, are exempted from section 80 of the FAA.
  • Provincial corporations incorporated as HFOC subsidiaries under section 80 approval are exempted from FAA sections 21, 22, 33(2), 37, 38, 42(5), 57.1, 78, 79, 81, and 83.
  • Other HFOC subsidiaries, meeting specific investment criteria, are exempted from most sections of the FAA, with exceptions for sections 1, 5, 6, 7, 13(3), and 72(4).

Why it matters

  • The appointment of five new members, including the chair, represents a significant reconstitution of the Alberta Investment Management Corporation's board of directors.
  • The change in board leadership and composition may influence the strategic direction and governance of the corporation's investment activities.
  • New appointments to the board of a Crown corporation responsible for managing public sector pension plans and provincial endowments can impact long-term financial strategies.
  • The exemptions reduce the application of standard financial administration and oversight provisions of the Financial Administration Act for the Heritage Fund Opportunities Corporation and its subsidiaries.
  • This grants HFOC and its subsidiaries increased operational autonomy in managing public funds and investments.
  • The framework allows for greater flexibility in the structure and operation of HFOC's investment vehicles.
  • The changes alter the accountability and reporting requirements for these entities compared to other provincial agencies subject to the full scope of the Financial Administration Act.

Rights affected

  • Access to information — The ability to see public records and government decisions.

Other governance concerns

  • Potential for altered strategic direction in the management of public funds.
  • Implications for the operational autonomy and decision-making processes of the Crown corporation.
  • Accountability mechanisms for the newly appointed board members.
  • Reduced financial oversight for a public corporation
  • Potential for decreased transparency in the management of public funds
  • Altered accountability framework for investment activities

Primary sources (2)