The Fonds d’indemnisation des services financiers (financial services compensation fund) was established in 1999 under the Act respecting the distribution of financial products and services. The fund compensates victims of fraud, fraudulent tactics or embezzlement for which a firm, independent representative, independent partnership, mutual fund dealer or scholarship plan dealer is responsible when offering a financial product or service.
On June 13, 2018, coverage under the fund was extended to compensate victims of fraud in relation to financial products and services offered by representatives, firms, independent representatives, independent partnerships, mutual fund dealers or scholarship plan dealers. The compensation is payable regardless of the sector or sector class in which the representative or firm is authorized to act. Therefore, even if representatives do not act within the authorized limits of their right to practise, compensation may be possible.
The extended coverage takes effect as of June 12, 2015. Accordingly, persons who have been the victim of fraud since June 12, 2015 benefit from the fund’s extended coverage.
The AMF is responsible for managing the amounts constituting the fund. The AMF keeps separate books in respect of such amounts and the costs incurred for the administration of the fund are paid out of the amounts constituting the fund. The assets of the fund are not part of the assets of the AMF.
As trustee of the compensation fund, the AMF undertakes to:
- award the mandate of measuring provisions to actuarial valuation specialists;
- award the risk rating mandate to actuarial valuation specialists;
- produce financial statements audited by the Auditor General of Québec;
- award the management of the fund’s investments to an investment committee.
Representatives and firms covered by the fund
For compensation to be paid, fraud must have been committed by a representative or firm as listed below, while offering a financial product or service.
If these representatives are attached to, for example, an insurance firm or independent partnership, mutual fund dealer or scholarship plan dealer, then the actions of that business could also be covered by the fund.
|Title of representative||Examples of products and services offered|
Financial security advisor
Accident and sickness insurance representative
Group insurance and group annuity plans advisor
Group insurance plans advisor
Group annuity plans advisor
Damage insurance representative
Mutual fund dealer representative
Scholarship plan dealer representative
Is your representative authorized to offer you the product?
- Consult the Register of firms and individuals authorized to practise
- Contact an AMF Information Centre agent
- Send us a Request for information This link will open in a new window
Type of damage covered by the Fund
Financial loss that is directly related to fraud is covered by the fund.
Some indirect financial losses are not covered by the compensation fund. These include investment losses, redemption and account closing fees (except in certain cases) and unrealized returns.
Costs incurred by the claimant to file a compensation claim are not repaid and no compensation is payable for moral damages, stress, loss of enjoyment of life and disturbances and inconveniences.
The compensation fund has three sources of financing:
- Contributions paid by certain firms and representatives registered with the AMF
These are representatives, firms and independent partnerships registered under the Act respecting the distribution of financial products and services as well as mutual fund dealers and scholarship plan dealers registered under the Securities Act.
|Insurance of persons||160 $|
|Group insurance of persons||100 $|
|Damage insurance||160 $|
|Claims adjustment||100 $|
|Financial planning||100 $|
|Mutual fund brokerage||160 $|
|Scholarship plans||100 $|
1If a representative operates in more than one sector, his or her contributions are discounted by $75 for each additional sector.
Where victims are compensated by the fund, some of their rights against the representative or firm at fault are assigned to the fund. The fund may then sue the persons responsible as if it itself was the victim, allowing it to sometimes recover all or some of the amounts of compensation paid to the victims.
- Returns on investments made by the fund
All returns generated by the fund’s investments are paid to the fund.