To protect its shareowner-savers, the Fonds de solidarité FTQ has a adopted measures related to its governance and is subject to laws and regulations.
Question: What changes did the Fonds make to its governance in 2009?
Answer: In 2009, the composition of the Special Boards that authorize the Fonds’ investments was changed so that a majority of their members are independent from both the Fonds and the FTQ. Special Boards hold veto power over all investments.
As well, the Fonds’ Audit Committee, which is composed entirely of external members who are independent from the Fonds and the FTQ was tasked with overseeing the Code of Ethics applicable to the members of all of the Fonds’ governing bodies and committees, including the Board of Directors and senior management. A whistleblowing clause was also added to the employee Code of Ethics.
Lastly, mirroring the practice in most large financial institutions, reputational risk became a more important factor in the evaluation of potential investments. In addition, in certain critical sectors, the Fonds performs, with the help of external firms, a criminal record check of business shareholders and verifies their integrity.