Montréal - The Autorité des marchés financiers (the "AMF") announces that it recently launched two proceedings related to what it considers to be illegal damage insurance practice. A penal proceeding involves Gestion Ar-Phi et associés inc. and an administrative proceeding involves MWM Assurances inc. and its officer Pierre Mercier.
The AMF claims that Gestion Ar-Phi et associés inc., a company purporting to be a damage insurance consultant, acted as a damage insurance firm without being registered as such. Three charges have been filed, and the AMF is seeking a total of $9,000 in fines.
The AMF is also launching an administrative proceeding against MWM Assurances inc. and its officer Pierre Mercier, whom it claims failed to ensure that its representatives fulfilled their obligations and set up a structure to circumvent the An Act respecting the distribution of financial products and services. Among other things, according to the AMF, the representatives of MWM Assurances inc. did not assess their clients' needs themselves and did not advise their clients, as this work was done by representatives of Ar-Phi, some of whom are not registered with the AMF. The AMF is asking the Bureau de décision et de révision (the "Bureau") to fine the firm $50,000, prohibit Pierre Mercier from directly or indirectly acting as officer in charge of a damage insurance firm for 3 years and order that a new officer be appointed.