Offences under Act respecting the distribution of financial products and services - AMF imposes penalties and cancellations
Insurance Decisions and Freeze and cease trade orders
Montréal – A number of decisions were issued recently by Jean St-Gelais, President and CEO of the Autorité des marchés financiers (AMF), for offences under An Act respecting the distribution of financial products and services.
The registrations of the following individuals and firms were cancelled:
- Yvon Laplante, an independent representative registered in insurance of persons who failed to demonstrate that he had made his instalment payments despite several reminders. In addition, he was fined $5,000;
- The damage insurance firm Denis Beauregard, which employed a person who did not hold a certificate for the purpose of pursuing activities reserved for damage insurance brokers and failed to attach to the firm a representative employed on its behalf. In addition, a fine of $10,000 was imposed;
- 177889 Canada inc., an insurance of persons firm that no longer had a representative and whose registration had been suspended since November 2007 because it did not carry valid liability insurance coverage.
The AMF also imposed penalties totalling $41,500 on various firms:
- a penalty of $10,000 on Kocisko Financial Corporation (a firm also operating under the name Société financière Kocisko), which is registered in insurance of persons and group insurance of persons and which used to be registered in group savings plan brokerage. The firm failed to file two reports on net free capital, to provide a copy of its financial statements over a period of 11 months, filed two reports on a deficit of net free capital, and failed to respond to a letter of irregularities sent by the AMF;
- a penalty of $10,000 on Essenso Financial inc., a group savings plan brokerage firm whose responsible officer, Van Thi To, was in a conflict of interest situation by recommending an investment in a company in which he held a substantial interest and misappropriating a client's funds. As well, the AMF required that the firm withdraw its registration and proceed with liquidation;
- a penalty of $8,000 on Assurances Cirrincione & Lauricella inc., a damage insurance firm that employed a person who did not hold a certificate for the purpose of carrying on activities reserved for damage insurance brokers;
- a penalty of $5,000 on Rochefort, Perron, Billette et associés inc., a firm registered in damage insurance and claims adjustment which, through advertising, suggested that two of its employees were authorized to pursue activities as a damage insurance broker, even though they did not hold any certificate as required. Furthermore, the advertising referred to a place of business that the firm had never reported to the AMF;
- a penalty of $4,000 on Groupe d’investissement Berkshire inc., a firm that used to be registered in financial planning and group savings plan brokerage, which failed to file several bimonthly reports on net free capital within the time period prescribed by law and to notify the AMF of its merger with Manulife Securities International Ltd;
- a penalty of $2,500 on Options Affaires Québec inc. (a firm operating under the name Action Finance) further to an inspection that revealed that some client files did not contain any financial needs analysis or such analysis was incomplete, and that the original copies of replacement notices had not been given to clients. The AMF required that the firm set up a control and monitoring procedure as well as the appointment of a compliance officer;
- a penalty of $2,000 on Partenaires financiers Majesta inc., a firm registered in group savings plan brokerage and financial planning, which failed to file a bimonthly report on net free capital prepared on the accrual basis of accounting.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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Sylvain Théberge: (514) 940-2176
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