The First Nations Fiscal Management Act (FMA) is optional First Nations legislation. It came into effect on April 1, 2006. The FMA established three First Nation institutions to develop practical, modern-day tools already used by other levels of government in Canada, and provide these tools to First Nations governments.
- First Nations Financial Management Board: Establishes financial management standards that lead to the principles of sound and transparent practices.
- First Nations Tax Commission. Ensures the integrity of the First Nations tax system.
- First Nations Finance Authority. Enables First Nations to borrow against any secure source of revenue at lower rates than traditional financing.
Barriers to First Nations lands investment
The FMA addresses barriers faced by First Nations when trying to attract investments to their lands. These include:
- It is two to three times more expensive to finance infrastructure on First Nation lands.
- It is four to five times more expensive to make investments on First Nation lands due to lack of investor confidence, legislative uncertainty, and a lack of financial information and statistics.
What the FMA provides
The FMA addresses these barriers by providing:
- a framework by which First Nations can be eligible to borrow money on similar terms to other governments in Canada.
- tools for First Nations to show they follow good governance and finance practices.