Political Financing Handbook for Nomination Contestants and Financial Agents (EC 20182) – June 2019 – Archived content
This document is Elections Canada's archived guideline OGI 2019-03 and is no longer in effect.
Click on the link for the latest Political Financing Handbook for Nomination Contestants and Financial Agents.
Note: This handbook is to be used for contests called on or after June 13, 2019. For earlier contests, please use the December 2018 version of the handbook..
1. Reference Tables and Timelines
This chapter presents quick reference tools for nomination contestants and financial agents. It covers the following topics:
- Starting the nomination contestant's campaign
- Role and appointment process—financial agent and auditor
- Important deadlines for the nomination contestant's campaign
- Closing the nomination contestant's campaign
- Limits on contributions, loans and loan guarantees
- Transfers—types and rules
- Important reminders for nomination contestants and their financial agents
Starting the nomination contestant's campaign
Party or association decides to hold a nomination contest
A nomination contest is a competition to select a person who will be proposed to a registered party for endorsement as its candidate in an electoral district.
A registered party or a registered association may decide to hold a nomination contest at any time. Elections Canada only needs to be notified within 30 days after the selection date.
Check the eligibility rules
The registered party or registered association holding the contest sets the requirements that any person must meet to be a nomination contestant.
Under the Canada Elections Act, people in the following positions have to step down once they become nomination contestants:
- auditors of candidates, nomination contestants, leadership contestants, registered parties or electoral district associations
- financial agents of nomination contestants
Appoint financial agent
The nomination contestant must appoint a financial agent before:
- accepting a contribution, loan or transfer
- incurring nomination campaign expenses
However, if the contestant's campaign is not accepting contributions, transfers or loans or incurring nomination campaign expenses, the contestant does not have to appoint a financial agent.
Appoint auditor
A nomination contestant who has accepted contributions totalling $10,000 or more, or incurred nomination campaign expenses totalling $10,000 or more, must appoint an auditor without delay.
Note that transfers to affiliated political entities are not nomination campaign expenses.
Open bank account
The financial agent has to open a separate bank account to be used exclusively for the contestant's campaign.
The account has to be with a Canadian financial institution or an authorized foreign bank, as defined by the Bank Act.
The financial agent must be named as the account holder, as follows: (name), financial agent. For example: “Peter Raymond, financial agent”.
It is also acceptable to add the contestant's name to the name of the bank account. For example: “Peter Raymond, financial agent for Anne Thomas”.
All monetary transactions in relation to the campaign have to go through the campaign bank account.
The bank account has to remain open until the campaign fulfills all financial obligations.
Note: The bank account opened for the nomination contest cannot be subsequently used for a nominated candidate's election campaign.
Start incurring expenses and accepting contributions, loans or transfers
The campaign can start incurring expenses and accepting contributions, loans or transfers before the start date of the nomination contest, as long as the contestant has a financial agent and a bank account.
From a political financing perspective, a person is deemed to be a nomination contestant from the date a contribution or a loan is accepted or a nomination campaign expense is incurred.
A person remains a nomination contestant until the campaign fulfills all financial reporting requirements.
Important deadlines for the nomination contestant's campaign
If a claim or loan is paid in full any time after the campaign return is filed, the financial agent must send an updated campaign return to Elections Canada within 30 days.
Contestant's campaign starts
SELECTION DATE
30 days after
Party or association sends Elections Canada:
- General Form—Nomination Contest
3 months after
Contestant sends financial agent:
- Nomination Contestant's Statement of Expenses (with all supporting documents)
4 months afterNote 4
Financial agent sends Elections Canada:
- Nomination Contestant's Campaign Return (with all required documents)Note 5
- Nomination Contestant's Statement of Expenses (with all supporting documents)Note 5
- Auditor's reportNote 6
19 months afterNote 4
Financial agent sends Elections Canada:
- Nomination Contestant's Statement of Unpaid Claims and Loans 18 or 36 Months After the Selection Date7
37 months afterNote 4
Financial agent sends Elections Canada:
- Nomination Contestant's Statement of Unpaid Claims and Loans 18 or 36 Months After the Selection DateNote 7
Note 1 Must be appointed before contributions, transfers or loans are accepted or nomination campaign expenses are incurred. A financial agent is not required if no contributions, transfers or loans are accepted and no nomination campaign expenses are incurred.
Note 2 Required before contributions, monetary transfers or loans are accepted or nomination campaign expenses are incurred.
Note 3 Must be appointed without delay after the campaign accepts contributions totalling $10,000 or more, or incurs nomination campaign expenses totalling $10,000 or more. note that transfers to affiliated political entities are not nomination campaign expenses.
Note 4If the selection date falls within an election period or within 30 days before it, the deadline is four months after election day rather than the selection date.
Note 5 Required if the campaign accepted contributions totalling $1,000 or more, or incurred nomination campaign expenses totalling $1,000 or more. note that transfers to affiliated political entities are not nomination campaign expenses.
Note 6 Required if the campaign accepted contributions totalling $10,000 or more, or incurred nomination campaign expenses totalling $10,000 or more. note that transfers to affiliated political entities are not nomination campaign expenses.
Note 7 Required if the campaign has unpaid claims and loans.
Role and appointment process–financial agent
Nomination contestant's financial agent
Role summary
- The financial agent is responsible for administering the contestant's financial transactions and reporting those transactions to Elections Canada as required by the Canada Elections Act.
- The contestant may have only one financial agent at a time.
- The financial agent's role continues until the contestant's campaign fulfills all financial reporting requirements.
Who is eligible? | Yes/No |
---|---|
Canadian citizen who is at least 18 years old | Yes |
Corporation or partnership | No |
Candidate or nomination contestant | No |
Election officer or member of the staff of a returning officer | No |
Undischarged bankrupt | No |
Auditor appointed as required by the Canada Elections Act | No |
Person who does not have the capacity to enter into contracts in the province or territory in which the person ordinarily resides (e.g. a person with a diminished mental capacity) | No |
Any other person or group not mentioned above | No |
Appointment process
- The contestant has to appoint a financial agent before the campaign can accept contributions, loans or transfers or incur nomination campaign expenses.
- The financial agent has to sign a statement consenting to act in that capacity.
- If for any reason the financial agent is no longer able to continue in that role, the contestant must appoint a new financial agent without delay and notify Elections Canada within 30 days. The notice has to include a signed consent from the new financial agent.
- Although it is not a legal requirement, a financial agent should be experienced in managing finances. The role requires a strong ability to control, record and administer financial transactions as well as to create financial reports.
Role and appointment process—auditor
Nomination contestant's auditor
Role summary
- If the campaign accepts contributions totalling $10,000 or more, or incurs nomination campaign expenses totalling $10,000 or more, the auditor has to examine the campaign's financial records and give an opinion in a report as to whether the financial return presents fairly the information contained in the financial records on which it is based.
- The auditor has a right to access all documents of the campaign, and may require the contestant or the contestant's financial agent to provide any information or explanation that is necessary to enable the auditor to prepare the report.
Who is eligible? | Yes/No |
---|---|
Person who is a member in good standing of a corporation, an association or an institute of provincially incorporated professional accountants (CPA designation)* | Yes |
Partnership of which every partner is a member in good standing of a corporation, an association or an institute of provincially incorporated professional accountants (CPA designation)* | Yes |
Candidate or their official agent | No |
Election officer or member of the staff of a returning officer | No |
Chief agent of a registered party or an eligible party | No |
Registered agent of a registered party | No |
Electoral district agent of a registered association | No |
Leadership contestant, their financial agent or a leadership campaign agent | No |
Nomination contestant or their financial agent | No |
Financial agent of a registered third party | No |
Any other person or group not mentioned above | No |
Appointment process
- The nomination contestant has to appoint an auditor without delay after the campaign accepts contributions totalling $10,000 or more, or incurs nomination campaign expenses totalling $10,000 or more. note that transfers to affiliated political entities are not nomination campaign expenses.
- The auditor has to sign a statement consenting to act in that capacity.
- If for any reason the auditor is no longer able to continue in that role, the contestant must appoint a new auditor and notify Elections Canada without delay. The notice has to include a signed consent from the new auditor.
- The contestant may have only one auditor at a time.
*Provincial and territorial auditing bodies may require auditors to meet other professional criteria in order to perform this role.
Closing the nomination contestant's campaign
Fulfill reporting obligations
The nomination contestant's campaign must fulfill all reporting obligations before it can close the campaign.
See the Reporting obligations after the selection date and Additional reporting tables in Chapter 13, Reporting.
Manage unpaid claims and loans
Claims and loans must be paid within 36 months after the selection date (or election day, if the selection date falls within an election period or within 30 days before it).
If a claim or loan is still unpaid 36 months after the selection date (or election day, as described above), the financial agent or the contestant has to seek authorization from Elections Canada or a judge before paying it.
See Chapter 14, Managing Unpaid Claims and Loans.
File amended return(s)
An amended contestant's return has to be filed with Elections Canada to correct errors or omissions, or to report new transactions.
Corrections or revisions might be requested by Elections Canada, or by the contestant or financial agent.
See the Additional reporting table in Chapter 13, Reporting.
Dispose of surplus
After all financial obligations have been met, the campaign must dispose of any surplus of funds and fulfill the surplus reporting obligations.
The surplus must be transferred to the official agent of the candidate endorsed by the registered party in the same electoral district, the registered association that held the nomination contest or the registered party.
See Chapter 15, Disposing of Surplus.
Close bank account
Once all unpaid claims, loans, other financial obligations and any surplus have been dealt with, the financial agent has to close the campaign bank account.
The financial agent has to send the final bank statement to Elections Canada.
Note: The bank account opened for the nomination contest cannot be subsequently used for a nominated candidate's election campaign.
Limits on contributions, loans and loan guarantees
Political entity | 2019 annual limit | Limit per election called between Jan. 1 and Dec. 31, 2019 |
---|---|---|
To each registered party | $1,600* | n/a |
In total to all the registered associations, nomination contestants and candidates of each registered party | $1,600* | n/a |
In total to all leadership contestants in a particular contest | $1,600* | n/a |
To each independent candidate | n/a | $1,600* |
Notes
- The contribution limits apply to total contributions, the unpaid balance of loans made during the contribution period, and the amount of any loan guarantees made during the contribution period that an individual is still liable for. The sum of these three amounts cannot at any time exceed the contribution limit.
- A nomination contestant is permitted to give an additional $1,000 in total per contest in contributions, loans and loan guarantees to their own campaign.
- A candidate is permitted to give a total of $5,000 in contributions, loans and loan guarantees to their campaign. A candidate is also permitted to give an additional $1,600* in total per year in contributions, loans and loan guarantees to other candidates, registered associations and nomination contestants of each party. (This includes contributions to the registered association in the candidate's electoral district and contributions to the candidate's own nomination campaign.)
- A leadership contestant is permitted to give a total of $25,000 in contributions, loans and loan guarantees to their campaign.
- A leadership contestant is also permitted to give an additional $1,600* in total per year in contributions, loans and loan guarantees to other leadership contestants.
*The limits increase by $25 on January 1 in each subsequent year.
Transfers—types and rules
This table shows the allowable monetary and non-monetary transfers between related registered political entities.
TO | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
FROM | Nomination Contestant | Leadership Contestant | Candidate | Registered Electoral District Association | Registered Party | |||||
Monetary | Non- monetary | Monetary | Non- monetary | Monetary | Non- monetary | Monetary | Non- monetary | Monetary | Non- monetary | |
Nomination Contestant | No | No | No | No | YesNote 1 | No | YesNote 2 | No | Yes | No |
Leadership Contestant | No | No | No | No | No | No | Yes | No | Yes | No |
Candidate | YesNote 3 | YesNote 3 | No | No | NoNote 4 | NoNote 4 | Yes | Yes | Yes | Yes |
Registered Electoral District Association | No | YesNote 5 | No | YesNote 5 | YesNote 6 | Yes | Yes | Yes | Yes | Yes |
Registered Party | No | YesNote 5 | NoNote 7 | YesNote 5 | YesNote 6 | Yes | YesNote 8 | YesNote 8 | n/a | n/a |
Note 1 A nomination contestant may transfer funds (but not property or services) to a candidate of the same party in the electoral district in which the nomination contest was held. After election day, monetary transfers are allowed only to pay claims and loans related to the candidate's campaign.
Note 2 A nomination contestant can only transfer funds to the registered electoral district association that held the nomination contest.
Note 3 Candidates may transfer property, services and funds to their own nomination contestant campaign for the same election.
Note 4 Candidates in a superseded by-election may transfer property, services and funds to their campaign for the general election.
Note 5 Non-monetary transfers must be offered equally to all contestants.
Note 6 Monetary transfers other than trust funds are allowed. After election day, monetary transfers are allowed only to pay claims and loans related to the candidate's campaign.
Note 7 Directed contributions are the only exception: they may be transferred to the leadership contestant.
Note 8 Registered parties may transfer property, services and funds to electoral district associations, whether registered or not.
Note: Independent candidates may not send or accept transfers of funds, property or services to or from other political entities.
Important reminders for nomination contestants and their financial agents
DO | DON’T |
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*Exceptions: A person authorized in writing by the financial agent can pay expenses out of petty cash. The nomination contestant can pay their personal expenses, travel and living expenses, and litigation expenses.
DO | DON’T |
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