Authority and Intervention

Our Authority

The First Nations Fiscal Management Act (FMA) is optional legislation created by First Nations, for First Nations. It came into effect on April 1, 2006, to give First Nations governments access to practical, modern tools that other levels of government in Canada already use to manage finances and grow local economies.

Under the FMA, four Indigenous-led institutions were established to support this vision:

  • First Nations Financial Management Board (FMB)

    Supports First Nations to build sound administrative and financial management practices.

  • First Nations Finance Authority (FNFA)

    Enables First Nations to borrow against secure sources of revenue at lower rates than traditional financing.

  • First Nations Tax Commission (FNTC)

    Assists First Nations governments to build and maintain fair and efficient property tax regimes.

  • First Nations Infrastructure Institute (FNII)

    Supports First Nations communities to plan, procure, own, and manage their infrastructure assets effectively.

The FMA also addresses longstanding barriers that make it more costly and difficult for First Nations to attract investment. Historically, infrastructure has been two to three times more expensive to finance on First Nations lands, and private four to five times more expensive due to legislative uncertainty, limited financial data, and investor hesitation.

Through the FMA, First Nations have a clear framework to borrow on similar terms to other governments in Canada, along with the tools and to demonstrate strong administrative governance and sound financial practices – helping communities grow with confidence.

First Nations invest the financial benefits of economic participation in our communities, our regions, and Canada. Increasing opportunities for meaningful participation will create financial and employment opportunities for all Canadians.

Harold Calla , Indigenous participation is vital to success of Canada’s economic shift, op ed in Calgary Herald Dec. 01, 2025

Intervention

If a First Nation defaults on a FNFA Borrowing Agreement or fails to comply with laws as governed by the FNTC, the FMB has the authority under the FMA to step in to provide support.

When Does Intervention Happen?

Intervention is a support process that enables the FMB to investigate, understand, manage, and resolve any problems relating to:

  • non-compliance with taxation laws
  • risk or actual default of service payment(s) to the FNFA.

Learn more about Intervention of Local and Other Revenues – Policy Summary (PDF)

We do this for the benefit and protection of all parties involved in the FMA framework, including the First Nation. Everyone involved needs to have confidence in the ability of borrowing First Nations to manage their financial management system properly and to make their debt service payments to the FNFA.

What is the Value of Intervention?

If the public, investors, and First Nations are confident in the integrity and quality of the FMB’s standards, the certification process, and procedures in place under the FMA, investors are more likely to invest in First Nations. They are also more likely to invest larger amounts, and under better terms and lending rates than traditional financing