October 9, 2009 Decisions and Freeze and cease trade orders Insurance

Montréal – On October 1, 2009, the Autorité des marchés financiers (the "AMF") ordered the cancellation of the registration of Fred Pincemin, an independent representative who was registered in the sector of insurance of persons.

During an inspection conducted in 2008, the AMF identified numerous violations of An Act respecting the distribution of financial products and services and its regulations (the “Act”). The AMF noted, in particular, that Fred Pincemin did not keep a complete file for each of his clients, did not ensure the confidentiality of his records and did not keep them for the minimum period required under the Act.

Moreover, Fred Pincemin did not identify and analyze the financial needs of his clients and did not place these analyses in his client files. Fred Pincemin also failed to properly familiarize himself with the investments he recommended to clients and did not take all measures at his disposal to ensure the legitimacy of the products offered to clients.

The AMF believes that Fred Pincemin failed to act with competence and professional integrity in keeping and managing his client records, and that it is therefore advisable to cancel his registration as an independent representative in all sectors where he is registered. The representative is required to notify the AMF of the manner he intends to dispose of his client records, books and registers within 15 days.

The AMF wishes to stress that the obligations and responsibilities of a registrant under the Act require a high level of competence and professional integrity.

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

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