Sanctions imposed on mutual fund dealer Beaudoin, Rigolt & associés
Securities Decisions and Freeze and cease trade orders
On May 27, 2015, the Bureau de décision et de révision (the "Bureau") rendered a decision which imposed a total of $35,000 in administrative penalties and issued several orders against mutual fund dealer Beaudoin, Rigolt & associés, Philippe Beaudoin, its Responsible Officer, and Pierre-Luc Bernier, its Chief Compliance Officer.
More specifically, the Bureau fined the company a total of $32,500 for failing to report a change of auditor in the National Registration Database (NRD) and for various offences relating to the compliance system, the commissions register, leveraged loans, commercial practices, risk tolerance forms and portfolio suitability. Philippe Beaudoin, the responsible officer, was also fined $2,500. The AMF claimed that he failed to report the filing of a charge against the company in NRD.
At the AMF's request, the Bureau also ordered the company to replace its chief compliance officer, Pierre-Luc Bernier, and its responsible officer, Philippe Beaudoin, and to appoint an independent auditor.
If Beaudoin, Rigolt & associés fails to make these changes within thirty days of service of the decision, i.e. July 3, 2015, the AMF will withdraw the rights of Beaudoin, Rigolt & associés conferred by registration as a mutual fund dealer.
In imposing these penalties, the Bureau considered in particular the prior conduct and experience of the offenders as well as their position and status at the time of the alleged facts, the harm caused to market integrity, the deterrent factor, the dealer's co-operation and the fact that the actions were deliberate.
The Bureau imposed penalties on this firm in 2012.