Decisions and Freeze and cease trade orders Insurance

Montréal – In a decision handed down on October 25, Judge Réjean Bédard of the Court of Québec (Criminal and Penal Division), district of Chicoutimi, found Réjean Deraspe guilty of three charges and the Centre de Planification Financière C.P.F. inc. guilty of one charge for violations under the Act respecting the distribution of financial products and services (the “Act”) and ordered them to pay fines in the amount of $3,000 and $1,500 respectively.

Réjean Deraspe faced three counts for purporting to be a financial planner in an interview with a reporter and for using the title of financial planner on his business card and website without holding a certificate as a financial planner issued by the Autorité des marchés financiers (AMF), thereby violating section 12 of the Act.

As for the Centre de Planification Financière C.P.F. inc., it faced one count for purporting to offer financial planning services via a website, although it is not an independent partnership nor a firm acting through a financial planner, thereby violating section 466 of the Act.

For these violations, the Court ordered Mr. Deraspe to pay a fine of $3,000 plus costs, which is twice the minimum fine, and ordered the Centre de Planification Financière C.P.F. inc. to pay a fine of $1,500 plus costs, which is one and a half times the minimum fine. As justification for imposing higher than the minimum fines, the Court noted aggravating circumstances and factors such as the fact that the defendants acted with full knowledge and failed to take the necessary measures to comply with the Act. As well, the Judge stated that the violations were committed intentionally and that the misrepresentations were distributed widely.

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

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