Item - 2016.EX13.10

Tracking Status

  • City Council adopted this item on March 31, 2016 without amendments and without debate.
  • This item was considered by Executive Committee on March 9, 2016 and was adopted with amendments. It will be considered by City Council on March 31, 2016.

EX13.10 - New Investments Regulations

Decision Type:
ACTION
Status:
Adopted on Consent
Wards:
All

City Council Decision

City Council on March 31 and April 1, 2016, adopted the following: 

 

1.  City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee on:

 

a.  the overall objectives for the City's investment policy (Section 47, City of Toronto Act, 2006),

 

b.  the qualifications for members of the investment board, and

 

c.  a plan for how the City will prepare to have the investment board and reporting structure in place for January 1, 2018.

Background Information (Committee)

(February 24, 2016) Report from the Deputy City Manager and Chief Financial Officer on New Investments Regulations
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90742.pdf
(December 4, 2015) Attachment 1 - Letter from the Minister of Municipal Affairs and Housing addressed to Mayor Tory, dated December 4, 2015
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90743.pdf
(November 25, 2015) Attachment 2 - Ontario Regulation 360/15 made under the City of Toronto Act, 2006 - Amending O.Reg. 610/06 (Financial Activities)
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90744.pdf

EX13.10 - New Investments Regulations

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that: 

 

1.  City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee on:

 

a.  the overall objectives for the City's investment policy (Section 47, City of Toronto Act, 2006),

 

b.  the qualifications for members of the investment board, and

 

c.  a plan for how the City will prepare to have the investment board and reporting structure in place for January 1, 2018.

Origin

(February 24, 2016) Report from the Deputy City Manager and Chief Financial Officer

Summary

The purpose of this report is to inform Council that the Province of Ontario has approved amendments to Ontario Regulation 610/06, Financial Activities, under the  City of Toronto Act, 2006 (the "Act"), to provide a framework for the City to invest according to the prudent investor standard.

 

This standard is similar to which that governs trustees and pension fund administrators and creates a fiduciary responsibility.  These reforms are expected to enable the City to earn improved risk-adjusted rates of returns on its investments as it will no longer be restricted to a prescribed list of eligible investments (i.e. basically bonds and money market securities).

 

This authority will come into effect on January 1, 2018.  Prior to the effective date, the City is required to establish an independent Investment Board and develop a new investment policy and strategy, both of which are required by the amended Regulation.

Background Information

(February 24, 2016) Report from the Deputy City Manager and Chief Financial Officer on New Investments Regulations
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90742.pdf
(December 4, 2015) Attachment 1 - Letter from the Minister of Municipal Affairs and Housing addressed to Mayor Tory, dated December 4, 2015
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90743.pdf
(November 25, 2015) Attachment 2 - Ontario Regulation 360/15 made under the City of Toronto Act, 2006 - Amending O.Reg. 610/06 (Financial Activities)
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90744.pdf

Motions

1 - Motion to Amend Item moved by Councillor Paul Ainslie (Carried)

That City Council request the Deputy City Manager and Chief Financial Officer to report to the Executive Committee on:

 

a.  the overall objectives for the City's investment policy (Section 47, City of Toronto Act),

 

b.  the qualifications for members of the investment board, and

 

c.  a plan for how the City will prepare to have the investment board and reporting structure in place for January 1, 2018.

Source: Toronto City Clerk at www.toronto.ca/council