Montréal – The Autorité des marchés financiers (AMF) launched proceedings this morning to request that the Bureau de décision et de révision en valeurs mobilières (BDRVM) make a recommendation to the Québec Minister of Finance to wind up the property of the Norbourg group.
The request follows the filing of a provisional report by Ernst & Young, which was also released publicly by the AMF this morning. The mandate of Ernst & Young, which was appointed by the Finance Minister to act as the provisional administrator, is to clarify the situation at Norbourg Asset Management by valuing the assets currently held in the funds and determining whether Norbourg operations can continue.
Report of provisional administrator
In its report, the provisional administrator drew the following conclusions:
- According to Norbourg’s financial statements as at July 31, 2005, assets under management amounted to $205 million, whereas a balance of $75 million was held in custody. There was therefore a discrepancy of $130 million as at July 31, 2005.
- 17 of the 29 funds in the Norbourg group held balances of less than $300,000.
- The main companies in the Norbourg group were operating at a deficit.
For these reasons, the provisional administrator recommended the winding-up of the property of the Norbourg group. In the provisional administrator’s report, the number of unitholders in the Norbourg group totalled 9,200.
AMF to exercise recourse for investors
Because of the seriousness of the situation, the AMF has decided to exercise a recourse for the benefit of investors. Based on the information it has gathered, AMF resources and expertise will therefore be available to investors for the recovery of funds. More information is available by calling at 1 877 525-0337.
The AMF is pursuing its investigation to determine whether to launch penal proceedings. Because of the substance of the allegations, the AMF is also co-operating with the Integrated Market Enforcement Team (IMET) of Montréal, which has undertaken a criminal investigation in this matter.
The purpose of the investigation is to validate the allegations, identify the perpetrators in the matter and determine whether legal proceedings should be launched against them.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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Philippe Roy (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, dial 9 for English, then choose option 1 for industry
Consumers and investors: (877) 525-0337, dial 9 for English, then choose option 2 for consumers