Increasing First Nations access to and control of their capital moneys within the Indian Act
Learn about the optional policy that aims to provide First Nations with more flexibility in accessing and managing their capital moneys.
About the policy
The Policy on the Transfer of Capital Moneys Through Paragraph 64(1)(k) of the Indian Act aims to provide First Nations with more involvement in and control over the administration of their capital moneys. This policy is optional and applies only to the transfer of capital moneys per paragraph 64(1)(k) of the Indian Act. Through the policy, all capital moneys are transferred to an independent trust created and managed by the First Nation.
Through the policy, decision-making authority is placed with First Nations over the management of current and future capital moneys. This is done within the legislative framework of the Indian Act.
First Nations already managing their capital moneys through an independent trust no longer have to request approval from the Minister of Indigenous and Northern Affairs to spend the moneys for community projects and other expenses.
First Nations that decide to opt into this policy can still participate in, and benefit from, any federal government program.
Some benefits for First Nations opting into the policy include:
- more flexibility in the management of their moneys
- quicker access to their moneys
- the ability to invest moneys to address communities current and future needs
- the potential for larger returns on moneys invested
First Nations can:
- choose the policy to gain control and manage their capital moneys
- continue to have their moneys managed under the Indian Act
- gain control and management over capital and revenue moneys by opting into the First Nations Oil and Gas and Moneys Management Act
How does a First Nation assume control of its capital moneys?
First Nations must follow these steps to assume control through the policy:
- Develop a trust agreement that meets certain conditions set out in the policy.
- First Nation community members must approve their leadership's decision to obtain control of their capital moneys through a ratification vote.
- The Minister of Indigenous and Northern Affairs approves once the community determines that a transfer of the First Nation's capital moneys is in its best interest.
About the policy's creation
The Policy on the Transfer of Capital Moneys Through Paragraph 64(1)(k) of the Indian Act was approved by the Minister of Indigenous and Northern Affairs on December 3, 2015.
During the policy's creation, INAC engaged with internal and external experts, as well as a number of interested First Nations to identify options for First Nations to have greater involvement in and control over the administration of their capital moneys.
Find out more:
Manual for the administration of band moneys