March 16, 2005

Montréal – The Autorité des marchés financiers (AMF) is requesting that the Bureau de décision et de révision en valeurs mobilières (BDRVM) issue a registration cancellation against Groupe Capital Kaufmann inc. and impose an administrative penalty on the firm for failing to comply with legal requirements.

The AMF notes the following:

• Kaufmann was late in paying the registration fees required under section 271.5 of the Securities Regulation, and this resulted in the suspension of Kaufmann’s right to practice on February 1, 2005.
• Kaufmann does not possess the amount of working capital required under section 209 of the Securities Regulation.
• Kaufmann failed to register with the National Registration Database (NRD) despite its obligation to do so by January 15, 2005 as stipulated by the Regulation respecting the National Registration Database.

The AMF is therefore requesting that the BDRVM revoke the rights granted by registration to Kaufmann and impose on Kaufmann an administrative penalty in the amount of $250 per day for failure to register with NRD.

To read the request made by the AMF (available in French only), please consult the appendix to the press release posted on the AMF website, under Media Centre/The Autorité’s Latest Press Releases.

Created under An Act respecting the Agence nationale d’encadrement du secteur financier, the Bureau de décision et de révision en valeurs mobilières (BDRVM) is a tribunal which exercises certain powers prescribed by the Securities Act. The BDRVM is independent of the AMF.

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

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Information:

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Philippe Roy (514) 940-2176
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