New bill expands Alberta’s powers to address misleading market disclosures
Alberta’s government is moving to stop any future claims over AIMCo’s 2020 losses, a shift that places a $1.3bn question directly in front of every pension plan relying on the Crown manager’s performance.
As reported by CBC News, Bill 12 would prevent public sector pensions from suing AIMCo for decisions made before November 2024, following losses of about $2.1bn tied to a volatility trading strategy.
According to The Canadian Press, the legislation aims to protect the Alberta Investment Management Corp. from potential legal liabilities after its 2020 losses and to shield companies from lawsuits accusing them of greenwashing.
CBC News reported that a 2023 Court of King’s Bench ruling found both AIMCo and the Alberta government would be liable if the plans succeeded in their arbitration efforts to recover about $1.3bn.
Finance Minister Nate Horner said AIMCo has no fund set aside for these claims.
He told reporters, “we've had lots of conversations about the borrowing the province is already undertaking, and it's something we're not willing to entertain.”
During a news conference, he also said “there's no extra fund at AIMCo to cover something like this” and described the potential taxpayer impact as unacceptable.
As per The Canadian Press, Horner said the investment strategy that drew scrutiny five years ago has been “remedied,” and he added that no one with a defined-benefit plan will see their pensions affected.
CBC News reported that the government maintains the plans are well-funded and the losses did not reduce benefits.
Opposition NDP finance critic Court Ellingson raised concerns about who would shoulder the costs if AIMCo is shielded.
As per The Canadian Press, Ellingson asked, “if the government is protecting AIMCo from being on the hook, who is on the hook?”
CBC News reported Ellingson’s further concern that “the money still needs to be to be there to pay out those defined benefits.”
According to The Canadian Press, the bill also aims to shield companies from “frivolous” lawsuits over good-faith climate-related financial disclosures.
The Alberta Securities Commission would adjudicate whether a disclosure meets that threshold.
The legislation would also expand the commission’s powers to address misleading market information, including through social media.
Horner said the goal is to protect investors from people attempting to drive stock values up or down without disclosing their interest, noting “it doesn't allow you to defraud someone.”
The commission would be able to halt the trading of a stock for up to 15 days if misinformation is circulating.
