The Commission des valeurs mobilières du Québec renders a decision in the matter concerning TIP Investment Advisors Ltd. and Paul Gagné
Securities Decisions and Freeze and cease trade orders
Montréal – The Commission des valeurs mobilières du Québec (CVMQ) has rendered a decision in the matter concerning TIP Investment Advisors Ltd. (TIP Advisors) and Paul Gagné.
TIP Advisors is a securities advisor with an unrestricted practice whose activities are limited to trading in derivatives. It acts as advisor and manager of TIP Funds Canada Ltd. (TIP Funds), a mutual fund. Paul Gagné is the president and sole shareholder of TIP Advisors. He is also President of TIP Funds.
On August 21, 2002, the CVMQ’s Director of Enforcement asked the CVMQ to suspend the rights granted by registration to Paul Gagné and TIP Advisors. He also asked that all other measures be taken to ensure compliance with the provisions of the Securities Act (the Act).
The CVMQ held several hearing dates from November 27, 2002 to June 3, 2003 to determine whether the facts alleged by the Director of Enforcement were well founded and, if so, to determine whether it was advisable to implement any of the measures he had requested.
In its decision, the CVMQ stated the following: “The Commission notes that there was a lack of thorough and consistent management by TIP Advisors and Paul Gagné. This random and insufficiently justified conduct makes it impossible to carefully and thoroughly monitor the accounting and management carried out by TIP Advisors and Paul Gagné. Persons in charge of the administration of the property of others and managers and promoters of public issuers are subject to strict standards of conduct which neither Paul Gagné nor TIP Advisors followed. This wrongdoing is significant and affects not only one or some aspects of their management, but all aspects thereof”.
The CVMQ also concluded that TIP Advisors and Paul Gagné did not comply with several major provisions of the Act and the Securities Regulation. It is of the opinion that TIP Advisors and Paul Gagné do not have the skills and probity required by the Act to ensure investor protection.
Accordingly, it has summoned TIP Advisors and Paul Gagné to a hearing to determine what measures to impose upon them. The hearing will take place on February 16, 2004 at 9:30 a.m. at 800 Square Victoria (the Stock Exchange Building) on the 23rd Floor.
Recall that on May 29, 2002, the CVMQ issued a freeze order against TIP Funds because it had not filed with the CVMQ its financial statements and annual report for the fiscal year ended December 31, 2001. On July 3rd of the same year, the CVMQ ordered an investigation of, among other things, the activities of TIP Funds, TIP Advisors and Paul Gagné as well as the use of funds contributed by investors. On July 4, 2002, the CVMQ issued a cease trade order against TIP Funds. That order was renewed for the fifth time on June 3, 2003. Two orders partially lifting the halt-trade were also rendered by the CVMQ on December 12, 2002 and June 3, 2003.
To read the Commission’s decision (pdf - 592 KB)This link will open in a new windowUpdated on May 18, 2018Conseillers de Placements TIP Ltée et Paul Gagné (available in French only), please consult the Appendix to this press release, which is posted on the website of the Autorité des marchés financiers, under the heading Media Centre.
Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector. The AMF merges the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l’assurance-dépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspecteur général des institutions financières.
— 30 —
Barbara Timmins: (514) 940-2176
Investors and representatives:
Elsewhere in Quebec: 1 800 361-5072