Hockey Canada will no longer use investment fund to settle alleged sexual assault claims

Hockey Canada said Wednesday it will stop using a little-known investment fund to settle alleged sexual assault claims, a day after Prime Minister Justin Trudeau criticized the organization for using player registration fees to maintain the fund without disclosing it to parents or players.

The fund, known as the National Equity Fund, has allowed Hockey Canada to settle a number of claims without oversight and the involvement of its insurance company.

“Hockey Canada recognizes we have significant work to do to rebuild trust with Canadians,” the organization said in a statement. “We know we need to hold ourselves accountable. That is why we are beginning a full governance review of our organization that will be overseen by an independent third party. This will include the National Equity Fund.

“While we respect that process, we also recognize some actions cannot wait. Effective immediately, the National Equity Fund will no longer be used to settle sexual assault claims.”

The Globe and Mail reported Tuesday that the National Equity Fund’s assets have exceeded $15 million in recent years. While the fund has earned more than $1 million in interest and investment income, Hockey Canada has not disclosed where the money comes from, and what it is used for, The Globe reported.

“I think right now it’s hard for anyone in Canada to have faith or trust in anyone at Hockey Canada,” Trudeau said on Tuesday. “A few years ago, I had my son in hockey, and when I think about the culture that is apparently permeating the highest orders of that organization, I can understand why so many parents, so many Canadians who take such pride in our national winter sport, are absolutely disgusted by what’s going on.”

Hockey Canada had said in a statement on Tuesday that the National Equity Fund would be examined in connection with a governance review the organization promised would take place part of a larger review examining how it responded to an alleged sexual assault in 2018.

Hockey Canada settled a $3.55 million lawsuit that was filed in April 2022 for an undisclosed sum over allegations of sexual assault involving eight former Canadian Hockey League players, including at least some from Canada’s 2018 World Juniors team.

The organization said Wednesday the fund will be “exclusively dedicated towards safety, wellness and equity initiatives, as well as insurance across our organization – activities which comprised 98 per cent of its resources between 2014 and 2021. This includes counselling and treatment for players, concussion research grants to the CHL, criminal record checks of Hockey Canada staff, donations to Kids Help Phone, as well as a range of safety initiatives including insurance for players and additional support for players who sustain physical injuries. Hockey Canada also commits that, going forward, all National Equity Fund proceeds from registration fees will be dedicated to these safety, wellness and equity initiatives, as well as insurance.”

Hockey Canada said that if the upcoming governance review determines that a fund to support victims of sexual assault is required, the organization would ensure all claims would be subject to the approval of an independent third party.