January 18, 2017 Insurance Decisions and Freeze and cease trade orders

Montréal – The Court of Québec and the Tribunal administratif des marchés financiers (the “Tribunal”) recently rendered decisions in a case of illegal practice in insurance of persons involving Yvan Prévost, Invico Investissements et Retraite inc. (Invico) and Marc St-Onge.

Penal component

On November 30, 2016, Justice of the Peace Jacques Rouillier of the Court of Québec, district of Longueuil, ordered Yvan Prévost to pay a $12,000 fine in connection with illegal activities as a financial security advisor.

This decision is further to penal proceedings launched by the Autorité des marchés financiers (the “AMF”) against Yvan Prévost, who was facing two charges for purporting to be a financial security advisor or having used the title without being registered as such with the AMF. On October 20, 2016, Yvan Prévost pleaded guilty to the two charges.

Judge Rouillier followed-up on the parties’ joint recommendation and imposed a $12,000 fine, i.e., three times the minimum amount.

Administrative component

In its decision of December 8, 2016, the Tribunal imposed administrative penalties and issued orders against Invico and Marc St-Onge,¹ further to an agreement entered into by the parties.

More specifically, the Tribunal ordered Invico to pay an administrative penalty of $25,000 for failing to comply with various legal provisions, including allowing the delivery of advice to clients and the performance of acts reserved for insurance representatives by Yvan Prévost, who was not registered with the AMF in any capacity whatsoever at the time of the facts at issue.

As well, the Tribunal imposed an administrative penalty of $5,000 on Marc St-Onge for failing to fulfill his duty as responsible officer. The Tribunal also prohibited Marc St-Onge from acting directly or indirectly as the responsible officer of an insurance of persons firm for a period of 18 months, and prescribed such conditions on his certificate.

Lastly, the Tribunal issued specific orders against Invico in particular with respect to replacing the responsible officer and maintaining its policies to ensure that the firm, its responsible officer and representatives comply with An Act respecting the distribution of financial products and services.

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

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¹ The respondent Marc St-Onge should not be confused with Marc St-Onge who holds certificate 131581 in insurance of persons and group insurance of persons and is with the firm Services financiers St-Onge inc.