Decisions and Freeze and cease trade orders Securities

Montréal – On May 31, 2019, the Financial Markets Administrative Tribunal (the “Tribunal”) issued various ex parte orders against Fancy Financial Services Inc., Zahir Ahmed Fancy and Rashida Lila.

Specifically, the Tribunal ordered Fancy Financial Services Inc., Zahir Ahmed Fancy and Rashid Lila not to dispose of funds, securities or other assets in their possession or custody and not to withdraw or appropriate funds, securities or other assets from any other person having them on deposit, under control or in safekeeping on their behalf.

In addition, the Tribunal ordered Zahir Ahmed Fancy and Rashida Lila to cease carrying on any activity, directly or indirectly, in respect of a transaction in securities and to cease acting as securities advisers or dealers.

The Tribunal also ordered Zahir Ahmed Fancy and Rashida Lila to comply with the provisions of the Act respecting the distribution of financial products and services (the “Act’’) and not to act as or purport to be representatives within the meaning of the Act.

The Tribunal further ordered three impleaded financial institutions not to dispose of the funds, securities or other assets that they have on deposit in any accounts opened in the names of Fancy Financial Services Inc., Financial Legacy Builder Ltd., Zahir Ahmed Fancy or Rashida Lila.

Lastly, the Tribunal ordered an impleaded insurer not to pay to anyone any or all of the cash surrender value of contracts held by Zahir Ahmed Fancy or Rashida Lila and not to allow anyone to borrow money against those contracts. It then ordered another insurance firm not to pay to anyone any or all of the value of a fund related to a contract held by Rashida Lila.

The respondents have filed a notice of contestation with the Tribunal.

L’Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.

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