Mount Real Corporation - AMF confirms suspension of two independent representatives and firm

Decisions and Freeze and cease trade orders Insurance Securities

Montréal – The Autorité des marchés financiers (AMF) is confirming the suspension of the registration of William John Marston and Yves Tardif as independent representatives in the sectors of insurance of persons and financial planning, and that of the firm Champoux, Froment et associés inc. in the sectors of insurance of persons and group insurance of persons. As well, the AMF is imposing a fine of $5,000 on each party.

On February 10, 2006, the AMF issued two decisions whereby it suspended the registration of William John Marston and Yves Tardif in all sectors in which they operated as independent representatives. In its decisions, the AMF gave each party an opportunity to present their observations to the AMF in writing. Following receipt of written and oral observations from the lawyers for Mr. Marston and Mr. Tardif, the AMF confirmed their suspension for a period of three months starting on February 10, 2006. Since May 11, 2006, Messrs. Marston and Tardif may reactivate their registrations provided they meet certain conditions, in particular, mandating a supervisor to monitor and control all their transactions and operations.

On February 17, 2006, the AMF suspended the registration of Champoux, Froment et associés inc. in all sectors in which the firm was registered. In its decision, the AMF gave the firm an opportunity to present its observations to the AMF in writing. Following receipt of written and oral observations from the lawyer for the firm, the AMF confirmed the suspension of the firm’s registration for a period of three months starting on February 17, 2006. Since May 17, 2006, the firm may reactivate its registration provided it meets certain conditions, in particular, mandating a supervisor to monitor and control all its transactions and operations.

In these three cases, immediate intervention by the AMF was required in order to protect the interests of investors and the public. The AMF faulted the parties primarily for interfering in an abusive manner in the investigation undertaken in the matter of Mount Real and for hindering progress in the matter to the detriment of investors.

The three decisions (available in French only) are available on the AMF website, under Mount-Real.

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

— 30 —

Information:

Media only:
Frédéric Alberro (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, choose option 9 for English, then 1 for industry
Consumers and investors: (877) 525-0337, choose option 9 for English, then 8 for consumers

Additional news