Strengthening the Inshore Regulations - Licence holder education and obligations
Context
- Being an Owner Operator includes managing the enterprise.
- Licence holders must be aware of their regulatory requirements.
- Licence holders often rely on professional services, such as accountants or lawyers.
- DFO’s Objective: Identify tools or supports for licence holders to understand their obligations and access independent expert advice.
Managing the enterprise
- Being an Owner Operator is more than fishing.
- Owner Operators are expected to plan, manage, and run their enterprise.
- Business management is part of being an owner operator.
Image 1 - Text version
Illustration of a person in fishing attire considering how to run a fishing enterprise. The person is shown beside a clipboard labeled “Running the Enterprise,” with surrounding thought bubbles depicting key factors such as business growth, operating a vessel, financial considerations, and regulatory obligations.
Return on your investments
As part of managing the enterprise, it is important that licence holders consider how agreements or several agreements can impact their overall independence.
Image 2 - Text version
Illustration of a person in fishing gear considering financial decisions. A balance scale above shows “revenue” versus “loan.” Surrounding thought bubbles depict expenses and assets, including a boat, fishing gear, fuel, a mortgage, car payments, and groceries and other bills.
Dual representation and conflicts of interest
Sometimes, professionals provide services to licence holders while being paid by a lender, such as a processor, and the advice may favour the one paying the bill. (Dual Representation)
When a professional acts for both and the advice favours the one paying the bill rather than the licence holder a conflict of interest may arise.
A conflict of interest can make the professional unable to fully protect the interests of both parties.
Image 3 - Text version
Illustration showing a potential conflict of interest. A licence holder stands on one side, while a lender holding a loan document stands on the other. In the center, an advisor or lawyer holds two signs reading “Duty to Licence Holder” and “Duty to Lender,” with a warning symbol and the label “Conflict of Interest (Dual Representation),” highlighting competing obligations between the two parties.
Areas for discussion
- Develop information or guidance documents to help licence holders better understand their regulatory obligations
- Require business plans when licence holders use third party lenders (non-recognized lenders)
- Identify ways to support licence holders in obtaining independent advice
- Identify ways to address conflicts of interest
Discussion questions
What tools would be most helpful for you when it comes to managing your enterprise?
How else could DFO support licence holders in obtaining independent advice without risk of conflicts of interest?
Page details
- Date modified: