CBC asked other sports organizations if they have funds like Hockey Canada. Here's what they said

As Hockey Canada faces widespread criticism over three funds it used to settle several sexual abuse complaints out of court, governance experts say it's actually a "good business" decision for an organization to protect itself against non-insurable claims — though most can't afford to do so.

In one case, Hockey Canada used these funds to settle a multimillion-dollar lawsuit after a complainant alleged she was the victim of a group sexual assault involving World Junior players in 2018.

CBC News informally surveyed a dozen national sporting organizations (NSOs), and none admitted to having similar funds.

Many NSOs are in the process of switching their complaints process to one provided by the Office of the Sport Integrity Commissioner (OSIC) and its Abuse-Free Sport Independent Complaint Office, although some still have their own internal reporting systems, or use independent third parties to deal with such claims.

Richard Powers, a lawyer and associate professor at the University of Toronto's Rotman School of Management, says that though there's "nothing the matter" with the existence of those funds — "it's good governance and a very good business decision" — there are issues with "the transparency" about how fees paid by hockey families across the country were being used.

"That is really the critical factor here — and one of the things that they're going to have to change moving forward, if they're going to [attempt] to regain the trust of Canadians." 

Former Hockey Canada officials have confirmed the existence of the National Equity Fund and the Participants Legacy Trust Fund. 

A third fund was discovered by former Supreme Court Justice Thomas Cromwell, who was commissioned to look into a controversial reserve fund used to quietly settle uninsured liabilities — including sexual assault allegations. 

His interim report found the reserve fund is necessary, but he also uncovered serious flaws with how it has been handled. 

During a July 27 parliamentary hearing, Brian Cairo, Hockey Canada's chief financial officer, told MPs the equity fund was set up in 1995, because "some risks can't be insured" by commercial liability insurance.

"It was recognized that there are just some unforeseen circumstances where claims are not insured, and you can think of Graham James," Cairo said, referring to the former junior hockey coach who was convicted of sexually abusing players in the 1980s and early 1990s. 

Of the nine claims paid out of the reserve fund for a total of $7.6 million, $6.8 million of those were related to the James case, Cairo said.

Hockey Canada has had sexual misconduct insurance coverage since 1998 and has used it to settle 12 sexual assault claims for a total of $1.3 million. 

However, it didn't use insurance to cover the 2018 case; money for that settlement came from registration fees paid by hockey families across Canada, stashed away in these three funds.