Fonds de solidarité FTQ to form special committee on its governance as part of its continuous improvement process

MONTREAL, Nov. 5, 2013 /CNW Telbec/ - Appearing before the National Assembly's Public Finance Committee, the Fonds de solidarité FTQ's chairman of the Board of Directors, Michel Arsenault, announced that in keeping with the Fonds' continuous improvement process, its executive committee, composed of a majority of external and independent members who are not affiliated with either the Fonds or the FTQ, will recommend the formation of a special committee on its governance at the Board's next meeting. This committee will consult with external governance experts and make recommendations to the Board.

The Fonds de solidarité FTQ has made major changes since its inception in 1983. Three areas were particularly overhauled in 2009: governance, ethics and reputational risk.

Governance

Since 2009, the special boards that authorize the Fonds' investments and their counterparts at the Fonds immobilier have been composed of a majority of independent members who are affiliated with neither the FTQ nor the Fonds. No investment is authorized unless it is recommended by one of these decision-making bodies, which hold a right of veto. Therefore, any project that is not approved by these committees cannot be submitted to the Board of Directors.

Ethics

Oversight of the Code of Ethics and Professional Conduct applicable to members of all the Fonds' bodies and committees, including the Board of Directors and senior management, is assured by the Fonds' Audit Committee, composed entirely of non-Board independent members.

Also since 2009, the Ethics Committee, which reports to the Audit Committee, is responsible for applying ethical standards to the employees and ensures that any employee who comes forward with a whistle blowing situation or reveals an ethical issue is treated with confidentiality and respect.

Reputational risk

The Fonds has set up a management framework to ensure that any company in which it is considering an investment conducts business with the utmost integrity and in compliance with all relevant legislation.

The Fonds began paving the way for an integrated risk management framework a few years ago, culminating in the adoption of the Integrated Risk Management Policy by the Board in May 2012.

As it does for most large financial institutions, reputational risk now plays a bigger role in the investment evaluation process.

About the Fonds de solidarité FTQ

Created in 1983, the Fonds de solidarité FTQ has been driving the Québec economy for 30 years. With net assets of $9.3 billion as at May 31, 2013, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and further Québec's development. The Fonds is a partner, either directly or through its network members, in 2,395 companies. With 615,664 shareholders-savers, the Fonds helps create, maintain or protect 170,915 jobs. For more information, visit www.FondsFTQ.com.

SOURCE: Fonds de solidarité FTQ

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