Canadian banks and other national institutions are now required to disclose information about the diversity of their boards of directors and top management, as per new rules published on Saturday. This new regulation stands in sharp contrast to the approach of the Trump administration in the U.S.
Additionally, federally regulated financial institutions must disclose their policies aimed at enhancing diversity when distributing notices for annual shareholder meetings.
The Canada Gazette notice highlighted the lack of clear and standardized information for investors regarding the representation of various groups, including women, Indigenous peoples, individuals with disabilities, and members of visible minorities in leadership roles. The notice emphasized that diversity is essential for a vibrant and successful financial sector that aligns with Canadian values.
Enforcement of these regulations falls under the responsibility of Canada's Office of the Superintendent of Financial Institutions, with immediate effect.
However, the actual implementation remains uncertain due to the upcoming leadership change in Canada's ruling Liberal Party, set for March to replace outgoing Prime Minister Justin Trudeau, and the federal election scheduled by October 20. The possibility of a Conservative government deciding to discontinue these rules adds to the uncertainty.
Canada's actions stand in contrast to U.S. President Donald Trump's executive orders geared towards dismantling diversity, equity, and inclusion (DEI) programs. While some supporters applaud these orders, advocacy groups warn that they could exacerbate inequalities, particularly as major U.S. corporations pivot away from ensuring fairer representation for historically marginalized groups.