TORONTO — Three weeks after ACTA and CATO temporarily withdrew their appointees from the TICO Board, comes word that TICO will decrease the number of TICO Board members from 11 to 9, in line with orders from the Minister of Public and Business Service Delivery of Ontario.
A statement from ACTA, issued over the weekend, says ACTA was expecting the change to the TICO Board’s composition.
“ACTA is not surprised by the disclosure of the Ontario government orders to change the composition of the TICO board that were released by TICO last Friday night in a media release,” says ACTA President Wendy Paradis.
She added that ACTA met with the Ontario Attorney General last spring and the Director of Consumer Policy in early July, both groups spoke about this future model for the TICO board and advised that all other Ontario regulators moved to this model after their AG audit. “TICO went through an auditor general audit early this year so we were expecting this change.”
UNPRECEDENTED MOVE
When ACTA and CATO announced on July 24 the withdrawal of their appointees from the TICO Board – until the TICO AGM this September, or until they were given a copy of TICO’s recommendations to the Ontario government on TICO’s future fee structure and Comp Fund funding – it was the latest move in a back-and-forth that has erupted over potential changes to Ontario travel industry’s Compensation Fund.
ACTA and CATO also requested a meeting with Minister of Public and Business Service Delivery of Ontario, Kaleed Rasheed, to discuss the Ontario Consumer Compensation Fund funding model before TICO’s consultation with registrants and stakeholders takes place this fall.
“Our associations want to provide all information before the Minister makes a decision. We believe a long-time request for a better consumer protection system in Ontario and a consideration of the financial burden put on an industry, which hasn’t recovered yet from the pandemic, has, once again, been ignored. We want to be included in Ontario’s ‘Open for Business’ plan,” said Jean Hébert, CATO Executive Director in late July.
At the same time, Paradis added: “ACTA and CATO have been denied details on the fee mechanism despite a decade of advocating for change. Both ACTA and CATO have appointees on the TICO board and yet, have been excluded from this information despite numerous requests.”
“BRINGS ADDED BALANCE TO THE BOARD”
For months ACTA and CATO have been demanding more transparency on potential changes to the Comp Fund model, after TICO announced in September 2022 it was initiating a review process that includes an end-to-end look at TICO’s current funding framework, including a Comp Fund review.
TICO has said that all funding options are on the table, and that the final recommended approach is subject to a review by the Ontario government prior to being shared publicly.
TICO latest’s Board update, issued Aug. 11, says Minister Rasheed’s orders include the following:
- Decrease the number of Board members from 11 to 9;
- Ensure all Board members possess a positive orientation for proactive consumer protection initiatives;
- Ensure no more than 34% of the members of the Board are drawn from the travel agent and travel wholesaler industry;
- Establish a nominations committee with requirements around eligibility criteria for nominated Board members; and
- Establish an industry advisory council, comprised of members representing the interests of travel agents and travel wholesalers to report to and advise the Board.
Click here to view the Minister’s orders in their entirety, including the effective dates.
According to TICO, these changes will help with the following:
- Enhance consumer protection;
- Enhance accountability for the sector;
- Present an opportunity for TICO’s Board to lead in governance best practices, mirroring the recommendations given by the Auditor General of Ontario to other Ontario regulators; and
- Provide a forum for industry to identify issues and provide advice to TICO’s Board.
“While TICO’s existing Board structure has served the organization well for many years, this governance change brings added balance to the Board and reflects best-in-class governance practices,” said TICO’s CEO Richard Smart. “This change allows for a more diverse range of voices to actively contribute to TICO’s consumer protection mandate, while still ensuring the industry has a strong voice at the table.”
TICO will host a webinar in the coming month to provide more information about how the Minister’s Orders will be implemented and provide an opportunity for registrants and stakeholders to ask questions. More information will be shared soon.
TICO is making the necessary by-law changes to implement these orders, which will be presented at its Annual General Meeting, scheduled virtually for Sept. 26, 2023 at 5 p.m.
Similar governance changes have been implemented at other Delegated Administrative Authorities, including the Ontario Motor Vehicle Industry Council (OMVIC), Home Construction Regulatory Authority (HCRA) and Tarion. These orders reflect a modernized approach to board governance, which includes skills-based recruitment to ensure optimal expertise in board oversight.
The Board of Directors is responsible for providing ongoing strategic oversight and governance to TICO as it fulfills its mandate of consumer protection.
ACTA’S RESPONSE
ACTA notes that the deadline to apply for the industry position on new TICO board is Aug. 21.
“Regardless of this change in board composition, it is important that the voice of the industry is heard by TICO and the Ontario government – and to this end, there will be 2 industry directors on the new board and there will be an industry advisory council formed,” says Paradis. “Anyone interested in being considered for the TICO board must apply by August 21, 2023.”
Paradis adds that ACTA is still in the dark about recommendations for any changes to the TICO fee structure and the mechanism for funding the Comp Fund.
“The Ontario government continuously ‘says’ it is committed to red tape reduction – a reduction in administrative and financial burden on Ontario business. They say…Ontario is ‘open for business’,” says Paradis in her Aug. 13 statement.
“The message that ACTA has delivered to government is clear. The industry cannot and should not be bogged down by unnecessary administrative burden to run a travel business in Ontario. The industry cannot and should not be required to financially support an ever-expanding regulator with increased unnecessary legislation and fees.
“Our message has been consistent. If the Ontario government is committed to a Traveller Consumer Compensation Fund in Ontario to cover potential bankruptcies, the current compensation should be fixed, including … that the beneficiary of the fund – the travel consumer – should be the contributor to that Fund as is the model in Quebec.”
Paradis adds that the industry “is recovering from a catastrophic global pandemic and should not and cannot support unnecessary administrative and financial burden.”
