Securities ViolationsAdministrative penalties imposed on Gestion d'actifs Joël Raby inc. and Service Financier Rimac inc.

Decisions and Freeze and cease trade orders Securities

Montréal - At the request of the Autorité des marchés financiers (the AMF), the Bureau de décision et de révision (the Bureau) recently imposed administrative penalties on Gestion d'actifs Joël Raby inc., a securities adviser with unrestricted practice, and Service financier Rimac inc., a mutual fund dealer, for various securities violations.

Gestion d'actifs Joël Raby inc. fined $5,900

On May 9, 2011, the Bureau imposed an administrative penalty of $5,900 on Gestion d'actifs Joël Raby inc.

The AMF accused the adviser of violating the Securities Regulation on four occasions by having a working capital deficiency, failing to inform the AMF about the deficiency, failing to inform the AMF about the repayment of a loan subject to section 212 of the Regulation and failing to keep records of the monthly calculations on working capital.

Service financier Rimac inc. fined $7,400

On May 18, 2011, the Bureau imposed an administrative penalty of $7,400 on Service financier Rimac inc. (Rimac).

As a mutual fund dealer, Rimac was required to register a person as the ultimate designated person and as the chief compliance officer for purposes of the National Registration Database (NRD), in accordance with the provisions of Regulation 31-103 respecting Registration Requirements and Exemptions.

In its initial application, the AMF asked the Bureau to suspend the dealer registration held by Rimac, order the appointment of an ultimate designated person and a chief compliance officer, and impose an administrative penalty. Given that Rimac appointed an ultimate designated person and a chief compliance officer on the date of the hearing, the AMF subsequently asked the Bureau to impose only an administrative penalty.

The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial industry.

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