Montréal - The Autorité des marchés financiers (the AMF) today released the findings and proposed orientations (pdf - 933 KB)This link will open in a new window with respect to the Fonds d'indemnisation des services financiers (Compensation Fund) further to its consultation on the compensation of Québec consumers of financial products and services.
Among the measures aimed at enhancing protection for consumers, consultation participants highlighted the importance of financial education, inspections, investigations and severe sanctions.
The AMF therefore intends to pursue its education initiatives to help consumers better understand their personal finances, be more vigilant and, ultimately, protect themselves against financial crimes. Informed consumers who ask the right questions and understand product offerings are better able to manage their finances and detect and avoid fraud. The AMF will continue to foster a customer-centric approach among its consumer assistance teams when dealing with consumers who are victims of fraud.
The AMF recommends preserving the uniqueness of Québec's compensation system. Québec consumers benefit from a system that is straightforward, quick and easily accessible. In addition, recourse to the Compensation Fund is free of charge, all other recourses do not have to have been previously exhausted and, since no legal process is involved, any injured party is not required to appear before a court or arbitrator.
Other measures proposed by the AMF include expanding eligibility criteria to include the sale of any product sold by a contributor to the Compensation Fund, the introduction of 15% co-insurance to share risk with consumers, and the exclusion of claims resulting from false declarations, willing participation in the fraud, investments made to avoid tax, and money laundering.
The consultation, held from December 9, 2011 to March 9, 2012, enabled the AMF to hear the points of view of the public and the industry on the principles that should guide the compensation of victims of financial crime. The 34 briefs submitted during this consultation are available on the AMF website.
The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial sector.
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