Carney’s assets are in a blind trust. Does that block potential conflicts of interest?

Mark Carney, the prime minister-designate, has taken proactive steps to address Conservative attacks regarding his financial holdings. In response to accusations made by Conservative Leader Pierre Poilievre, Carney has divested all assets, except for his personal real estate, into a blind trust. This move was made four months ahead of the deadline set by conflict-of-interest rules for elected public office holders.

A spokesperson for Carney stated that all necessary reports will be filed with the ethics commissioner well in advance of the required timeline. The ethics commissioner’s office has confirmed that they have been in communication with Carney’s team, although specific details were not disclosed.

This decision to divest assets comes after Poilievre accused Carney of taking advantage of a supposed “loophole” in the Conflict of Interest Act to hold onto assets that conflict with Canadian interests. However, the act actually mandates that public office holders must divest themselves of controlled assets within 120 days of assuming their position.

Controlled assets are defined as those whose value could be influenced by government decisions or policies. Examples include publicly traded securities, commodities, and stock options. The ethics commissioner determines which assets need to be divested after a report is submitted by the public office holder.

Carney has opted to place his assets in a blind trust, managed by a trustee who has the authority to oversee and sell the assets. The trustee must maintain an arm’s-length relationship with Carney and is prohibited from seeking advice on asset management. Regular reports must be submitted to the ethics commissioner regarding the trust’s value, income, and fees.

Blind trusts are seen as a safeguard against conflicts of interest, but their effectiveness relies on the integrity of the parties involved. Leonard Brooks, a professor at the University of Toronto, emphasized the importance of governance and ethical behavior in the operation of blind trusts.

Conservative proposals to amend the Conflict of Interest Act include requiring party leadership candidates to disclose their controlled assets publicly within 60 days. This change aims to increase transparency and accountability for those seeking public office.

In conclusion, Carney’s proactive approach to addressing conflicts of interest demonstrates a commitment to ethical governance. By adhering to the guidelines set forth in the Conflict of Interest Act and utilizing a blind trust, Carney aims to uphold the trust and confidence of the Canadian public.