The Tories say Carney is being 'sneaky' about his assets. What do the rules say?

Liberal leadership candidate Mark Carney speaks with Conservative Leader Pierre Poilievre before a ceremony at the National Holocaust Monument in Ottawa, Monday, Jan. 27, 2025. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — In a series of press conferences in recent weeks, the federal Conservatives have demanded that Liberal leadership candidate Mark Carney comply with the conflict of interest rules that apply to members of Parliament and cabinet ministers.

Carney, who is neither an MP nor a member of cabinet, has said he will comply with the rules when they apply to him.

Here is what the rules say.

What are the rules for members of Parliament?

MPs are subject to the Conflict of Interest Code for Members of the House of Commons, which came into force in 2004 and has been updated five times, most recently in March 2023.

The code includes a process to disclose private interests to the ethics commissioner and procedures to make some of that information public. It also sets out rules to help MPs avoid conflicts of interest.

It only applies to sitting members of Parliament, so it’s not in force during an election.

What are the rules for the government?

Cabinet ministers and the prime minister are subject to the Conflict of Interest Act and must make disclosures to the ethics commissioner.

Some of the information disclosed to the commissioner has to be made public.

What are the rules for candidates in a party leadership race?

Elected MPs are subject to the House of Commons conflict of interest code. That code applies to two candidates in the current Liberal leadership race: Chrystia Freeland and Karina Gould.

Cabinet ministers and parliamentary secretaries also have to comply with the Conflict of Interest Act, but Freeland and Gould both stepped down from their cabinet roles before the leadership race began.

Frank Baylis, who was an MP from 2015 to 2019, would have made disclosures at that time. Right now, he and Carney are not subject to either set of rules.

Why don’t the rules apply to Carney?

Rob Shepherd, a professor of public policy and administration at Carleton University, said the rules are “meant for protecting the interests of the Canadian public once they’re in office.”

“No candidate is required to disclose their personal assets,” he said, adding that asking candidates to disclose assets early could run afoul of privacy laws.

This is an unusual situation, since Carney could become prime minister before becoming an MP. Shepherd said that’s led to questions about whether the rules need to be changed.

“It may be a very legitimate question to ask,” he said.

Shepherd said that while changes could be made to the laws that govern elections, it’s up to political parties to set the rules for their own leadership races.

What happens when the leadership race is over?

The winner of the Liberal leadership race will be appointed prime minister by the governor-in-council and will then have to comply with the Conflict of Interest Act.

That law says public office holders have 120 days to complete an initial compliance process.

They must divest controlled assets — assets like stocks or bonds that could rise or fall in value as a result of government actions. Those assets must be sold in an arm’s-length transaction or placed in a blind trust.

Within 60 days of taking office, a cabinet minister, minister of state or parliamentary secretary must submit a confidential report to the ethics commissioner’s office. According to the wording on the ethics commissioner’s website, they must “make reasonable efforts to include a similar description for (their) spouse or common-law partner and dependent children.”

That report is reviewed by the commissioner’s office, which provides a summary statement and advice on any public declarations required. Those must be signed and handed to the commissioner within 120 days of the initial appointment to office.

What are the Conservatives saying?

Conservative MPs say Carney is exploiting a “loophole” in the laws.

MP Michelle Rempel Garner said last week that because Carney could win the Liberal leadership and quickly call a federal election, “it’s conceivable that he wouldn’t have to disclose his financial interests … until after an election.”

She argued the law did not anticipate “an unelected person who had significant corporate board interests becoming prime minister” and called on Carney to disclose all his corporate interests now.

“I firmly think that anybody seeking to lead this country needs to live above the letter of the law,” she said.

Conservative MP Michael Barrett pointed out that Carney was Prime Minister Justin Trudeau’s “senior economic adviser” for years.

Carney became an informal adviser to the federal government on economic matters during the COVID-19 pandemic in 2020. In late 2024, the Liberals announced he would chair a task force to help the party develop ideas on spurring economic growth.

“It’s very clear that we have a problem with the rules as they exist because Mark Carney can be sneaky about what his business dealings are,” Barrett said Tuesday.

He did not answer when asked whether party leadership races should be restricted to sitting MPs. He also didn’t say which rules should be changed.

Dennis Matthews, president of advertising agency Creative Currency and a Conservative strategist, said the Liberals and the Conservatives are both racing to brand Carney, who is a relative unknown on the political stage.

“All of the best attacks in politics have to have a kernel of truth to them. So when you look at Conservatives going after Carney on financial disclosures, or business dealings from the past … these can be answered with a little bit of sunshine from Mark Carney,” he said.

“If he’s not willing to answer, you can see that brings into (play) questions of, ‘What’s being hidden?’”

But Shepherd said the attacks are a “false flag.”

“What’s sneaky about this, exactly? The (Conflict of Interest Act) doesn’t capture (Carney),” he said.

He said he thinks the Conservatives are “doing whatever they can to slow down a speeding train, that is, their decline in the polls.”

“You throw as much as you can out there and see what sticks,” he said.

What is Carney saying about all this?

When he announced his intention to run for the Liberal leadership, Carney said he resigned as UN special envoy for climate action and finance and left his executive role at Brookfield Asset Management and the boards of Stripe and PIMCO.

His campaign team said in an emailed statement on Monday that he has resigned from all professional or advisory roles.

“He will work hard to earn a seat in the House of Commons, where he is committed to complying with all applicable ethics rules and guidelines relating to these roles,” said campaign spokesperson Emily Williams.

“It’s clear that Pierre Poilievre is afraid to face Mark Carney in the coming election campaign.”

This report by The Canadian Press was first published Feb. 26, 2025.

Sarah Ritchie, The Canadian Press