Canadian Lawyer InHouse

25 CANADIANLAWYERMAG.COM/INHOUSE JULY 2016 have not seen an impact on our client base" as a result of the decline in the oil and gas sector, she adds. That optimism is echoed by Sheldon Stener, general counsel and corporate sec- retary with Federated Co-Operatives Ltd. "As a co-operative, we are uniquely struc- tured to take a longer-term approach. We are not publicly traded. We are not subject to the whims of the market," says Stener, who is based at the company's head offi ce in Saskatoon. Federated Co-Operatives is owned by approximately 200 retail co-ops throughout Western Canada. It has 10 business units, including agricultural and retail operations and refi nery operations. The company says its sales in 2015 were just over $9 billion and its net earnings from operations were $539 million. The organization has added two more lawyers this year and the in-house unit has expanded to fi ve lawyers from one in the past four years, says Stener. The increase in legal work also includes more attention paid to compliance issues. "We are looking more broadly at compliance to make sure every- one is on-side," he says. Federal anti-spam legislation continues to be one of the compliance areas demand- ing attention. As well, it is important to keep on top of privacy issues and the ways that potentially negative information about an organization can spread through social me- dia. "If you are in the public eye and there is a breakdown, you will want to have the proper procedures in place. That is just good business. It is about minimizing brand risk," says Stener. In terms of potential expansion for the company, Stener says it hopes to be part of the increased privatization of the retail li- quor market in Saskatchewan, promised by the provincial government. Along with the oil and gas sector, uranium producers have felt the impact of a steady decline in prices in recent years. However, federal Crown corporation and the leading provider of fi nancing and other services to the agricultural sector in Canada, with a current loan portfolio of more than $28 bil- lion. It has more than 100 offi ces across the country, mostly in rural communities, with its corporate offi ce in Regina. The corporation is governed by the Farm Credit Canada Act, not the Bank Act, but Macdonald says it is looking to emulate the compliance requirements on fi nancial insti- tutions. "We have been proactively looking at those regimes," she says. In terms of the overall economy, the most recent data issued by Statistics Canada indicates that Saskatchewan and Manitoba have felt some negative impact in the past year. The unemployment rate in April of this year was just over six per cent in Manitoba, up slightly from the year before. The boom period in Saskatchewan has slowed down, as a result of the volatility in the resource sector. Its unemployment rate in April was 6.3 per cent, up nearly two per cent from the same period 12 months earlier. Still, both provinces are below the national unemployment rate of 7.1 per cent and have a weekly average income above that of the national average. The economic downswing has not been noticeable in the agricultural sector, which is much stronger than people may realize, says Macdonald. "Our organization is thriv- ing because our customers are thriving. We T he recent economic downturn in Alberta has spilled over in part to Saskatchewan and Manitoba, but not to anywhere near the same de- gree, and that means it hasn't affected the amount of legal work being conducted by in-house counsel in those two provinces. In fact, some departments are expanding be- cause of an increased focus on privacy and compliance issues, as well as ensuring that companies are not being used as a base for money laundering or terrorist fi nancing. Even in the agricultural sector, the poten- tial for funds being directed for improper purposes cannot be overlooked, says Valerie Macdonald, general counsel and integrity offi cer at Farm Credit Canada. "Knowing your customer is a big thrust in our organi- zation," she says. "The agricultural sector is not immune from possible terrorist fi nanc- ing activity. We are increasingly aware we could be a target." Farm Credit Canada is a self-sustaining Roots in agricultural sector keep Prairies strong In-house departments in Manitoba and Saskatchewan are growing as demand for resources on compliance and regulatory matters increases. BY SHANNON KARI

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