The issue of personal incorporation found its way into Ontario’s budget again this year.

Last year, Ontario proposed to extend the right to incorporate to numerous professionals, and it has since proposed legislation on the issue. This year it is proposing technical amendments to the Business Corporations Act relating to professional corporations.

It says the amendments would clarify that the liability for professional negligence of a shareholder of a professional corporation is not affected by the existence of the corporation, or the fact that the corporation is a member of a partnership or limited liability partnership.

Technical amendments will also be proposed for “various statutes governing regulated professionals to provide that the conditions, prohibitions and restrictions that currently apply to individuals who practise the particular profession would also apply to professional corporations”.

It appears that the government is moving further to allow broad professional incorporation in the securities industry, by ensuring that the use of corporations would be allowed as a business decision, but not as a means of evading responsibility.

The budget also proposes various amendments to financial services legislation, ” to eliminate barriers to competitiveness, reduce costs of compliance, and increase efficiency and effectiveness”. Eight changes are proposed to clarify securities legislation, to reduce the cost of compliance for market participants, and to harmonize requirements with those of other Canadian jurisdictions.

Insurance companies will benefit from having the list of permissible investments for Ontario-incorporated insurance companies updated to give provincially incorporated companies more flexibility in planning their investment strategies. Further amendments to insurance legislation are being considered to harmonize Ontario investment standards with those in other Canadian jurisdictions. Proposed changes to the Insurance Act and the Registered Insurance Brokers Act would remove restrictions on foreign ownership of corporate agents and adjusters and brokerages.

The province will no longer incorporate loan or trust companies. It says that, “After a transition period, only federally incorporated companies would be able to operate in Ontario.”

Ontario is proposing a change to the Mortgage Brokers Act that would exempt foreign banks that are allowed to operate in Canada under the federal Bank Act from regulatory requirements. Also, several amendments are proposed to streamline the regulatory requirements for co-operatives.

Another proposal would see the Credit Unions and Caisses Populaires Act be changed to permit the Deposit Insurance Corp. of Ontario to invoice credit unions and caisses populaires for premiums within 120 days of the start of their fiscal year. This will allow premiums to be based on the previous year’s audited financial statements.