Evaluation of the Integrated Market Enforcement Teams Reserve Fund

Executive Summary

1. Introduction

This document constitutes the final report for the evaluation of the Integrated Market Enforcement Teams (IMET) Reserve Fund. It covers all activities over the past five years (2010-11 to 2014-15). In accordance with the 2009 Treasury Board Policy on Evaluation, it addresses both the relevance and the performance of the Fund.

2. Description of Integrated Market Enforcement Teams Reserve Fund

The IMET Initiative is an interdepartmental initiative mandated to investigate serious Criminal Code capital market fraud (CMF) offences that are of regional or national significance and that may threaten investor confidence or economic stability in Canada. As a component of the Initiative, the IMET Reserve Fund is a Contribution Program designed to support prosecutions by Provincial Attorneys General of serious Criminal Code market fraud offences investigated by IMET by defraying exceptional costs associated with these prosecutions.

The Reserve Fund’s objective is to support the IMET Initiative and contribute to effective prosecutions. The Fund is a transfer payment program administered by the Department of Justice that acts as a contingency fund in the event that these types of cases arise.

3. Description of the Evaluation

In order to address the questions included in the evaluation plan, the evaluation included a document review and key interviews with departmental officials and other stakeholders, as well as a review of the cases where the Fund was used.

A systematic review of relevant information related to the IMET Reserve Fund was conducted. Documents consulted include performance reporting within the Department of Justice, planning documents, audit reports, and the Terms and Conditions.

4. Evaluation Findings and Recommendations

4.1. Relevance

Evidence gathered as part of this evaluation indicates that the Reserve Fund is relevant. There is a continued need for the Fund and it aligns with federal and departmental priorities by ensuring that CMF prosecutions are not avoided due to extraordinary costs. However, limited knowledge of the Fund among Provincial Attorneys General prosecutors and the narrow scope of the Terms and Conditions has limited its uptake.

4.2. Performance

Outcome Achievement

During the period covered by this evaluation, the Reserve Fund received six applications for two cases from two provincial prosecution services. One provincial prosecution case achieved convictions and the other led to acquittals.

The Reserve Fund’s challenge in fulfilling its objective of effective enforcement against serious criminal CMF offences in Canada is the low level of applications from Provincial Attorneys General.

Efficiency and Economy

Considering the Fund received limited applications, it nevertheless has been administered effectively and economically.

4.3. Recommendation

In order to strengthen both the contribution of the Reserve Fund and the efficiency of the Fund as a whole, and ensure the Fund’s continued sustainability, the following recommendations are submitted:

  1. That the Department consider amending the Terms and Conditions of the IMET Reserve Fund to expand the scope of the criteria for admissible expenses.
  2. That the Policy Implementation Directorate re-examine the intended outcomes of the IMET Reserve Fund with a view to ensuring that they can be realistically achieved.