Davies recently submitted a comment letter to the Ontario Ministry of Public and Business Service Delivery and Procurement in response to its proposed legislative and regulatory framework for an Ontario Beneficial Ownership Registry (BOR).
The proposal would require Ontario corporations to file information from their registers of individuals with significant control (RISC) with the government, building on existing record-keeping obligations under the Ontario Business Corporations Act. The BOR would provide limited public access to RISC information, and fuller access for law enforcement and regulatory bodies.
The letter, prepared primarily by Jonathan Bilyk, Michael Disney, Cameron M. Rusaw and Aaron Atkinson, strongly urges the Ministry not to adopt the proposal in its present form. The key concerns include the following:
- The Ministry has not conducted an adequate cost-benefit analysis or demonstrated that the registry will meaningfully advance anti-money laundering objectives;
- The proposal significantly underestimates the compliance costs for businesses with complex ownership structures;
- The proposed enforcement provisions could inappropriately impose liability on third-party service providers, including law firms, for the accuracy of RISC information – a departure from the existing liability framework under the Act;
- The proposed filing deadlines are impractical and would create unnecessary administrative burdens; and
- Other jurisdictions, including Alberta and the United States, have delayed, avoided or rolled back comparable requirements, raising concerns about Ontario’s competitiveness as a jurisdiction of choice for incorporation.
Read the full comment letter.
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