AMF to assume provisional administration of insurer La Vigilance
Insurance
Montréal – The Autorité des marchés financiers (AMF) will assume provisional administration of the insurer La Vigilance, société de secours mutuels (“La Vigilance”) pursuant to paragraphs c), d) and e) of section 378 of An Act respecting insurance for a period of at least seven working days, starting on November 15, 2005. Accordingly, the AMF is assuming the powers of the members of the board of directors and of the general meeting of La Vigilance in accordance with section 385 of the Act.
The AMF has taken these steps in response to concerns it has noted with respect to La Vigilance, namely:
- an unsatisfactory financial position, with the insurer recording a net loss and negative equity capital for the fiscal year ended December 31, 2004;
- investments prohibited under An Act respecting insurance that a reasonable and prudent person, acting in the best interest of the insured persons and the members, would not carry out in similar circumstances;
- management practices inconsistent with sound and prudent management practices.
The AMF must, within the shortest time possible, present a complete report of its findings to the Minister of Finance, together with its recommendations.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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Information:
Media only:
Philippe Roy (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, choose option 9 for English, then 1 for industry
Consumers and investors: (877) 525-0337, choose option 9 for English, then 8 for consumers