Administrative penalty against CIBC Trust

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 en valeurs mobilières (BDRVM) issued a decision on October 15, 2008 imposing an administrative penalty on CIBC Trust in the amount of $5,795.92 for failing to comply with certain obligations under the Securities Act (the "Act").

In May 2007, AMF Inspection asked some 188 unrestricted securities advisers and 96 mutual fund firms registered with the AMF to fill out a risk assessment questionnaire. It was intended to help the AMF improve the effectiveness and efficiency of inspections by identifying the risks associated with each duly registered adviser and firm.

On July 15, 2008, the AMF filed a request with the BDRVM indicating that CIBC Trust, as an unrestricted securities adviser that was duly registered with the AMF, had failed to complete and return the questionnaire, thereby violating section 237 of the Act whereby the AMF:

  • or its appointed agent may require any document or information it considers expedient for the discharge of its functions to be submitted to it.

In its decision, the BDRVM took the following aggravating circumstances into account:

  • Failure by an experienced firm to respond to the questionnaire as required;
  • The duration of the failure;
  • The importance of the questionnaire for the purposes of AMF Inspection.

However, the BDRVM noted attenuating circumstances whereby the respondent acknowledged the facts, completed and returned the questionnaire as required and agreed to the present decision against it as part of an agreement entered into with the AMF.

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

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