P.E.I. Greens call for more government oversight of money held in trust

P.E.I.'s Official Opposition is questioning whether the proper protections are in place to safeguard Islanders' money held in trust under provincial law.

Those questions, raised in the legislature Wednesday, stem from an ongoing RCMP investigation into financial irregularities at Dawson Funeral Home in Crapaud.

Police say money for prepaid funerals, which should have been held in trust, cannot be accounted for. They say the irregularities involve anywhere from dozens to up to 100 cases, and date from 1998 to 2021.

Under P.E.I.'s Prearranged Funeral Services Act the money was supposed to be held in trust with a bank, credit union or trust company authorized to operate in P.E.I.

Green MLA Hannah Bell said she's been approached by people directly impacted by the investigation into the funeral home, and by others "who have money in trust for other things, [wondering] is their money safe?"

Bell told reporters there are three questions she wants answered by Minister of Justice Bloyce Thompson: "What are you doing to make sure this doesn't happen again? What are you doing to provide compensation for people who have lost money? And how can people have confidence in other spaces where they may be having their money held in trust?"

But when Bell put those questions to the minister during question period, Thompson said he was limited in what he could say because of the ongoing investigation.

He said the concerns raised by Bell represent a "serious issue."

Responsibility lies with board, says government

"We are working with the [PEI Funeral Services and Professions] Board, and I think once we take a deep dive into this, we'll have to make sure … that the public can trust everyone, the association of funeral home owners, so that the money that they invest is well looked after."

An emailed statement from Thompson's department said "the board is ultimately responsible for funeral licensing and oversight," including oversight of funds meant to be invested in trust.

On its website, the Funeral Services and Professions Board says it has suspended licences for the Dawson Funeral Home and for a funeral director associated with the home, pending results of a board investigation.

But Bell said there is a lack of oversight, and some responsibility rests with government to try to determine whether funds are being used appropriately.

"It's a very grey space. It's one of those things where we have laws because we're supposed to, and we don't necessarily enforce them," Bell said. "The fact that this happened with the funeral home tells us that there is a problem."

Lack of understanding

Bell said there's a general lack of understanding on both sides around how similar laws operate. 

For example, under the Rental of Residential Property Act, security deposits from tenants are required to be placed in an interest-bearing trust account by landlords.

If and when that deposit is returned, the interest earned is to be returned with it.

"Many landlords don't even know that they're supposed to do that, let alone the tenants," Bell said.