TIP Investment Advisors Ltd. & Paul Gagné suspended for five years
Decisions and Freeze and cease trade orders Securities
Montréal – The Bureau de décision et de révision en valeurs mobilières (BDRVM) has decided to suspend the rights granted by the registration of TIP Investment Advisors Ltd. (“TIP Advisors”) and Paul Gagné for a five-year period.
The attorneys for the Agence nationale d’encadrement du secteur financier (also known as the “Autorité des marchés financiers” or “AMF”) had asked for the permanent revocation of the rights of TIP Advisors and Mr. Gagné. They have thus decided to appeal the BDRVM decision.
It its decision, the BDRVM said that: “The defendants were guilty of both professional negligence and repeated misconduct in several respects. By their direct involvement in these actions and their key role in the operations of TIP Funds, they must assume full responsibility for the actions taken. Several of the actions in question show elaborate planning and a willingness to deceive, such as the cheques exchanged to create an artificial appearance of liquidity or the infringement of an order of the Commission… The wrongdoing is significant and covers not only some aspects of management but all the defendants’ conduct.”
The BDRVM also stated that the "lack of awareness [of the defendants] of their own liability does not give any hope in the short or medium term that the defendants will be prepared to fulfil the duties and responsibilities imposed on registrants".
Recall that 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. Mr. Gagné is the president and sole shareholder of TIP Advisors. He is also President of TIP Funds. On January 30, 2004, the Commission des valeurs mobilières du Québec (CVMQ) concluded that TIP Advisors and Mr. Gagné did not have the skills and probity required by the Act to ensure the protection of investors.
To read the BDRVM’s decision (pdf - 1 MB)This link will open in a new windowUpdated on June 1st, 2018Décision du Bureau de décision et de révision en valeurs mobilières concernant TIP Investment ltée (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 / The Autorité’s Latest Press Releases.
Created by virtue of the Act respecting the Agence nationale d'encadrement du secteur financier, the Bureau de décision et de révision en valeurs mobilières (BDRVM) is a tribunal which exercises certain powers provided for by the Securities Act. The BDRVM is an organization independent of the AMF.
Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector. The AMF consists of 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 Inspector General of Financial Institutions.
— 30 —
Journalists only: Barbara Timmins (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
- Hearing to determine the measure to be imposed upon TIP Investment Advisors Ltd. & Paul Gagné is again postponed
- Hearing to determine measure to be taken against TIP Investment Advisors Ltd. & Paul Gagné is postponed
- The Commission des valeurs mobilières du Québec renders a decision in the matter concerning TIP Investment Advisors Ltd. and Paul Gagné