Quebec Government Seeks Oversight of Notarial Fund Amid Transparency Concerns

Published: May 3, 2025, 5:00⁢ a.m.

MONTREAL (AP) — Teh Quebec government is intervening in the management of the Chamber of Notaries’ notarial study fund, citing‍ concerns over financial management, governance, and a lack of transparency. The government has requested the appointment of a “guide” to oversee the fund.

The province began scrutinizing the fund in 2023 following⁤ allegations regarding the chamber of Notaries’ use of ⁤funds.

Examination and Findings

Marylène ‍Le Houiller, press secretary for Minister Sonia Lebel,⁣ stated via email that the Office of Professions was mandated in ⁣February 2023 to investigate the fund’s management. The investigation was prompted by concerns that the Chamber of ‍Notaries’ handling of the fund could⁤ erode public trust.

An external audit identified ⁤issues related to financial management, governance, and financial control mechanisms. The auditor also concluded that the fund lacked transparency in its use of funds, according to Le⁤ Houiller.

“Red flags have‍ been ‍lifted⁤ and that this deserves additional verifications,”

Office of Minister Lebel

Despite acknowledging the Chamber of notaries’ cooperation during ⁣the review, Minister Lebel’s office indicated the need for further investigation.

“Minister Lebel asked the ‍office to mandate a guide. ⁢An action plan will be put in place so that the issues are corrected, for the benefit of the population, for more ‍transparency and to ensure that the Chamber has all the tools in hand to fulfill its mission of protection of the public,” the office stated.

what is ⁣the‍ Notarial Study Fund?

The Notarial‍ Studies Fund, largely‍ composed of public money derived ⁤from interest on funds passing thru notaries’ trust accounts (e.g., during property transactions),⁤ totaled $145 million in 2022, according to a report by The press. The⁣ most recent annual report, that ‍of 2023-2024, was $341 million on March 31, 2024.

The fund is intended to promote access to justice,legal reform,research,and legal education. However, the Chamber has also used it to finance its operations and ⁤acquire property, including a stake in a downtown Montreal building.

Minister Lebel’s office stated that regular accountability is expected to assess whether further actions are necessary. The office declined to comment further.

Chamber of Notaries Responds

Johanne Dufour,director of communications ⁢for⁣ the Chamber‍ of Notaries,said the association was verbally informed of the government’s support on Monday but received no details.

“To⁢ date, we still have no detailed report on the results of the analysis carried out in 2023, in which we had fully collaborated and contributed,” Dufour said.

Dufour noted that the report focused on the fund’s governance and management between 2016 and 2022.

“We are all the more⁣ surprised since we had revised, with insistence, on⁤ several occasions the office to obtain follow‍ -ups, and this, for more than the last 15 months; But still nothing.”

Dufour added that the Chamber initiated a financial governance reform of the fund in 2018, with the Office of Professions aware of the changes. The Chamber is awaiting recommendations to finalize the reform.

Hélène Potvin, then president of the Chamber of⁣ Notaries, told The press in 2022 that the fund benefited from increased real estate activity, generating more interest⁢ income.

The Chamber of Notaries’ website does not mention the government’s intervention. The most recent press release, dated April 15, announced an agreement between the Minister of Justice, the Chamber of Notaries, and the Quebec Bar ⁢to promote access⁢ to justice.

Bruno Larivière, the⁢ current president of the Chamber of Notaries, stated in the press release that the organization would contribute⁢ $50 million from the notarial studies fund to promote access to justice.

The press is a Montreal-based newspaper.