October 30, 2014 Insurance

The Bureau de décision et de révision ("Bureau") recently allowed a request from the Autorité des marchés financiers ("AMF") following an agreement between the AMF and Assurexperts Pierre Auchu inc., a damage insurance firm, and its responsible officer Pierre Auchu.

The AMF charged Assurexperts Pierre Auchu inc. and Pierre Auchu with failure to comply with legal provisions. Further to an inspection conducted by the Chambre de l'assurance de dommages, various irregularities were noted, including failure by the firm to prepare financial statements and file income statements since 2010, inadequate accounting, overall reconciliation of separate account in potentially deficit position and failure to pay taxes on insurance proceeds since the firm was established in 2007.

In addition to correcting the irregularities, Assurexperts Pierre Auchu inc. and Pierre Auchu undertook to overcome all the shortcomings uncovered during the inspection, in particular by enlisting the services of an outside consultant who will provide assistance and supervision over 12 months as well as monitor the firm's activities and supervise Pierre Auchu in the performance of his duties as responsible officer.

Assurexperts Pierre Auchu inc. and Pierre Auchu also agreed to pay an administrative penalty in the amount of $20,000.