July 14, 2005 Insurance Organization

Montréal – Further to the release of the “Report on commercial practices in the Québec damage insurance brokerage sector” in April 2005, the Autorité des marchés financiers (AMF) is undertaking a public consultation.

As guidance, the AMF has prepared a document entitled “Consultation on commercial practices in the damage insurance brokerage sector in Québec,” which is being posted today (in French only) on the AMF website. It sets out the findings from the report and possible solutions on which the AMF seeks comments.

The consultation will help develop regulatory measures with a view to fostering sound practices between dealers and insurers and promoting an environment that makes it easier for consumers to reach informed decisions. In this way, the AMF hopes to ensure that commercial practices in the damage insurance sector are adequate and that consumers of financial products are protected.

The AMF has therefore invited 12 organizations to present their comments as part of the public consultation, which is scheduled for September 14 and 15, 2005 in Québec City. Other persons may submit comments to the AMF as indicated on its website, under “Industry Services.”

All comments received in response to the consultation document will be posted on the AMF website.

In its report on commercial practices, the AMF noted in particular that the large majority of the Québec brokerage network is not independent of insurers and that certain commercial practices common in Québec are not in the best interests of consumers.

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

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Information:

Journalists only:
Philippe Roy (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, dial 9 for English, then dial 1 for industry
Investors: (877) 525-0337, dial 9 for English,then dial 2 for consumers