Financial
Sovereignty

The Problem

Saskatchewan does not capture, save, or utilize enough of its own wealth.

Saskatchewan's vibrant credit union ecosystem is in need of modernization.

The Promise

The NCP will ensure Saskatchewan resource wealth is captured and secured for generations to come.

The NCP will create a public financial institution to ensure Saskatchewan's money is stored and used within Saskatchewan's borders.

The Plan

The NCP will introduce the following two bills:

• The Saskatchewan Sovereignty Fund Act
• The Saskatchewan Financial Group Act

With these Acts, Saskatchewan will be able to commit to a financially sovereign future.

The Saskatchewan Sovereignty Fund Act

A new Crown corporation to be known as the Saskatchewan Sovereignty Fund Agency (SSFA) will be mandated to create and manage a new, permanent, intergenerational endowment fund to be known as the Saskatchewan Sovereignty Fund (SSF).

The SSFA will be governed by a board of nine members: two appointed by the government, two by the Opposition, two by Indigenous governing bodies, and three independent members selected by the other six for expertise in investment management, Indigenous governance, and public finance. Board members will serve staggered five-year terms and may be removed only for cause. This structure insulates the fund from short-term political pressure.

The SSFA board will maintain and publish an Ethical Investment Policy defining excluded industries and practices. The policy will be reviewed every three years with public consultation. Initial exclusions include: fossil fuel extraction and processing, tobacco production, weapons manufacturing, private prisons, and companies with documented severe labour or human rights violations.

The SSF will be seeded with an initial $500 million transfer from the General Revenue Fund. To fund the principal over time, the SSF will receive regular payments from resource royalties and Crown dividends.

From resource royalties, the SSF will receive 10% of all revenues collected by the new base royalty rate, and then 25% of any revenues collected from the new Windfall Levy. From Crown corporations, the SSF will receive 5% of all dividends.

• See Policy 15 - Resource and Energy Sovereignty for more.
• See Policy 21 - Funding for more.

The principal capital will be protected and secured for all future generations of Saskatchewan residents. It cannot be withdrawn or spent without a supermajority vote of the Legislature.

The SSFA will maintain the Fund through a diversified long-term portfolio designed to preserve capital, reduce volatility, and achieve a strong real return over time. Allocations will be reviewed annually by the SSFA board with independent actuarial advice. The Fund's target will be a long-term real return of 4% to 5% annually through diversified investment.

The SSFA will invest only in ESG-screened funds or direct holdings that exclude prohibited industries, such as fossil fuels, tobacco, or weapons. Where index investments are used, they must be fossil-free variants. The SSFA will publish an annual report on excluded holdings and the performance impact of ethical screening.

The Saskatchewan Sovereignty Fund is a true intergenerational endowment. Its purpose is to capture and preserve a portion of Saskatchewan's public wealth for future generations, not to serve as the Province's primary project-finance vehicle.

The SSF may invest a limited portion of its assets in Saskatchewan public-interest securities where doing so is consistent with prudent diversification, risk management, and the Fund's long-term return objectives. However, the Fund shall not be required to act as the primary or automatic purchaser of junior-risk tranches, project-specific securities, or any other concentrated Saskatchewan exposure.

Any proceeds from the lawsuit against the oil majors and Ottawa will go directly into funding the Saskatchewan Sovereignty Fund. Given the potentially large scale of such proceeds, the SSFA board will develop a special integration plan to absorb funds without market disruption, potentially phasing deposits over multiple years.

The SSFA will publish quarterly investment reports, annual audited financial statements, and an annual report to the Legislature. The annual report will include: total fund value, returns by asset class, fees paid to investment managers, ethical screening decisions, and projected future disbursements.

The SSF will make no annual disbursements for the first 15 years after its creation, allowing time for capital growth and portfolio stabilization. After that point, annual disbursements may be made to the General Revenue Fund, but may not exceed 2% of the Fund's average market value over the preceding five years.

The Saskatchewan Financial Group:

The Saskatchewan Financial Group will be a public treasury, depository, and liquidity institution for the Government of Saskatchewan and its Crown corporations. Its purpose will be to keep provincial cash in Saskatchewan, strengthen the credit-union system, and provide wholesale financial infrastructure that supports the provincial economy.

The SFG is not a retail bank and will not provide ordinary consumer or business lending. Its core functions will be cash management, wholesale funding, liquidity support, loan-pool purchases, and financial infrastructure support for participating credit unions.

The Government of Saskatchewan currently maintains approximately $3 billion in operating balances with commercial banks. Transferring this float to the SFG will provide liquidity and wholesale funding capacity for the credit-union system.

The transition will be slow, phased over 36 months before all provincial monies are exclusively managed out of the SFG. We are not committing a bank run. It will be done department by department and Crown by Crown corporation.

The SFG will offer participating credit unions access to wholesale funding at rates tied to provincial borrowing costs plus a modest spread to cover administration, risk, and liquidity management. It may also purchase seasoned pools of credit-union loans to provide liquidity and balance-sheet relief, subject to prudent exposure limits and collateral requirements.

The SFG will also support the modernization of the credit-union system through transition supports such as balance-transfer fee coverage, mortgage-transfer assistance, temporary support for basic no-fee accounts, and shared digital infrastructure developed in partnership with Saskatchewan Digital Services.

Credit unions accessing SFG funding must submit annual rate comparisons showing their consumer rates are competitive with or better than Big Five banks. The SFG will publish these comparisons annually. Credit unions that fail to demonstrate customer benefit may have their SFG access suspended.

The SFG will help cover a portion of balance transfer fees for Saskatchewan residents moving their primary banking from a Big Five bank to a participating credit union. The SFG will also work with credit unions to offer streamlined mortgage transfers for Saskatchewan residents, covering appraisal fees and legal costs for qualifying transfers.

Participating credit unions must offer a basic no-fee chequing account with no minimum balance. The SFG will provide credit unions with a per-account subsidy for the first two years to offset the cost of free accounts.

The SFG will be mandated to maintain liquidity sufficient for daily credit union operations, as well as purchase investment instruments, including provincial treasury bills or bonds, to manage liquidity and support provincial financing.

The SFG will operate in coordination with the Credit Union Deposit Guarantee Corporation, which maintains its existing regulatory and deposit insurance functions. The CUDGC's board representation on SFG ensures alignment between liquidity support and prudential regulation.

SFG funding to credit unions will be secured against loan portfolios or other assets. In the event of a credit union failure, the CUDGC maintains its deposit guarantee function, and SFG claims will be subordinate to depositor protection. The SFG will maintain prudent exposure limits to any single credit union.

The Funding

The Saskatchewan Sovereignty Fund Agency will be funded initially through the General Revenue Fund during its establishment period. Once the Fund reaches operational maturity, SSFA administration and investment-management costs may be paid from the Fund itself, subject to a capped asset-management charge set by law and publicly disclosed each year.

The Saskatchewan Financial Group will be capitalized through the phased transfer of provincial operating balances currently held with commercial banks, supplemented by General Revenue Fund support during startup where required. Over time, the SFG's operating costs will be supported by treasury-management income, wholesale funding spreads, liquidity operations, service fees, and investment income.

The Saskatchewan Sovereignty Fund and the Saskatchewan Financial Group serve different purposes and will remain financially distinct. The SSF exists to preserve intergenerational wealth. The SFG exists to manage public cash and support Saskatchewan's financial infrastructure in the present.

What It Means For You

It means provincial cash stays in the province.

It means Saskatchewan credit unions can compete and win.

It means the dignity of knowing our future is secured.

FAQ

• What is the Saskatchewan Sovereignty Fund?
• It is a permanent intergenerational endowment fund seeded with public capital and fed over time by a share of resource royalties, windfall revenues, Crown dividends, and any climate lawsuit proceeds. Its purpose is to preserve Saskatchewan's public wealth for future generations.


• Can the government raid the fund?
• No. The principal is protected by law and cannot be withdrawn or spent without a supermajority vote of the Legislature.


• Will the Fund pay for programs right away?
• No. The Fund is designed as a true endowment. It will make no annual disbursements for its first 15 years, allowing time for capital growth and stabilization. After that, limited annual transfers to the General Revenue Fund may be made under a strict payout rule.


• What does the Fund invest in?
• A diversified long-term portfolio of global equities, fixed income, real assets, and alternatives, subject to ethical exclusions. It may invest a limited share in Saskatchewan public-interest securities, but it will not serve as the Province's automatic buyer of risky project paper.


• What is the Saskatchewan Financial Group?
• It is a public treasury, depository, and liquidity institution for the Government of Saskatchewan and its Crowns. It keeps provincial cash in Saskatchewan and uses that public financial capacity to strengthen the credit-union system.


• Is the SFG a bank?
• No. Banking is federal jurisdiction. The SFG will not operate as a retail bank or make ordinary consumer loans. It will provide wholesale funding, liquidity support, treasury management, and financial infrastructure support.


• How does the SFG help credit unions?
• It provides wholesale funding tied to provincial borrowing costs, liquidity support, loan-pool purchases, transfer assistance for residents leaving the Big Five banks, support for basic no-fee accounts, and shared digital infrastructure.


• Will my credit union rates actually go down?
• Participating credit unions will have to demonstrate that SFG support is being passed through to members through better rates, lower fees, or improved service. Those comparisons will be published publicly.