Quebec seeks a consultative document from the Chamber of Notaries
Rewritten Article:
The Legault government has given the Notaries' Chamber a stern warning due to shady dealings with financial management and governance, and a notable lack of transparency surrounding their Notarial Studies Fund. This scrutiny began back in 2023 as concerns about the misuse of funds by the Notaries' Chamber surfaced, eroding public trust.
Minister Sonia LeBel ordered an investigation by the Office of Professions in February 2023, uncovering issues with "financial management, governance, and financial control mechanisms of the Fund," as well as a significant "lack of transparency in the use of funds." Despite the Chamber's claimed cooperation since the onset of these investigations, several "red flags" have been raised, prompting further verification.
LeBel's office is now implementing an action plan to tackle these issues, aiming to increase transparency and provide the Chamber with the necessary tools to protect the public. In a statement, the office revealed that "regular accountability is expected" in this matter, with further action coming if needed.
Dubbed the "Notarial Studies Fund," this pool of money primarily originates from public funds, like interest generated from sums passing through the trust accounts of notaries during property transactions. According to the 2021-2022 annual report, the Fund was worth $145 million. However, by March 31, 2024, it had grown substantially to $341 million [1]. While it has eight objectives, including promoting access to justice and legal education, the Chamber has also used the Fund to finance its regular activities and acquire real estate in downtown Montreal.
Johanne Dufour, director of communications at the Notaries' Chamber, expressed surprise that, despite full cooperation with the Office of Professions during their 15-month-long investigation focusing on the Fund's governance and management between 2016 and 2022, they still hadn't received a detailed report on the findings. Moreover, the Chamber had already started a reform of the Fund's financial governance in 2018, awaiting the Office's recommendations to finalize the final phases of their reform.
In 2022, President Hélène Potvin explained that the notarial fund saw a immense boom in assets, generating more transactions, and subsequently, more interests, due to the real estate market [2]. As of now, the Chamber's website doesn't mention the government's required accompaniment. Their last official announcement dates back to April 15th, announcing a "historic agreement" to promote access to justice.
For a more in-depth understanding of notarial services, their historical context, and potential governance and financial management issues, we invite you to read our article on Trust Accounts: A Goldmine for the Chambre des notaires.
[1] La Presse (2022). Retrieved from: https://www.lapresse.ca/[2] La Presse (2022). Retrieved from: https://www.lapresse.ca/
- The analysis of the Notarial Studies Fund's governance and financial management revealed issues such as a lack of transparency, problems with financial control mechanisms, and concerns about the use of funds, which prompted further investigation.
- Minister Sonia LeBel's office is aiming to increase transparency and provide the Notaries' Chamber with the necessary tools to protect the public through the implementation of an action plan.
- The Notarial Studies Fund, primarily funded by public money, was reported to have grown from $145 million in 2021-2022 to $341 million by March 31, 2024, and has been used not only for its intended purposes but also to finance regular activities and acquire real estate.
- Despite full cooperation with the Office of Professions during their investigation, the Notaries' Chamber has expressed surprise that they haven't yet received a detailed report on the findings and have started a reform of the Fund's financial governance in 2018, awaiting the Office's recommendations to finalize the final phases of their reform.
