December 17, 2010 Insurance Decisions and Freeze and cease trade orders

Montréal – Recently, proceedings were launched against various insurance firms and representatives and fines imposed.

Groupe Lyras inc. fined $15,000

The firm Groupe Lyras inc., which carries on business as Groupe Lyras Assurance et Services Financiers in Sainte-Agathe-des-Monts, was recently fined $15,000 for violations under An Act respecting the distribution of financial products and services (the “Act”).

More specifically, the Autorité des marchés financiers (AMF) alleged that Groupe Lyras inc. enabled Jocelyne Bernier to pursue activities as a damage insurance representative between December 2002 and December 2008 while she was not duly registered with the AMF.

To prevent a reoccurrence of the situation, the AMF required that Groupe Lyras inc. provide a document showing that control and monitoring measures have been implemented to ensure that the firm, its responsible officer, its representatives and its employees are in compliance with the Act and its regulations.

Jocelyne Bernier was the subject of a penal proceeding launched in October 2009. The AMF alleges that she illegally pursued activities as a damage insurance representative, and is seeking fines totalling $4,000. The hearing will be held in April 2011.

Cailloux, Dagort & associés - Shelley Sirois fined $3,000

On November 10, 2010, Justice of the Peace Gilles Michaud of the Court of Québec, district of Montréal, found Shelley Sirois guilty of illegally using the title of damage insurance broker, and ordered her to pay fines totalling $3,000.

In 2009, Shelley Sirois used the title of damage insurance broker at the firm Cailloux, Dagort & associés, but she was not registered with the AMF to pursue such activities in Québec. Shelley Sirois was however registered as a damage insurance broker in Ontario between July 2004 and October 2009.

In the same matter, the AMF also filed a request for administrative penalties with the Bureau de décision et de révision (the “Bureau”). The AMF claims that damage insurance firm Cailloux, Dagort & associés allowed Shelley Sirois to pursue activities illegally. The AMF requires that the firm implement control and monitoring measures to ensure that it is in compliance with the Act and its regulations, in particular with regard to maintaining its representatives’ certification. The hearing was held on November 30, 2010, and the decision was taken under advisement by the Bureau.

MICA Capital inc. fined $5,000

The firm MICA Capital inc. was recently fined $5,000 following an inspection by the AMF which revealed certain technical violations. As required, the firm demonstrated to the AMF that the necessary measures to remedy the situation have been implemented.

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

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