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Compensation fund : the Authority will compensate the victims retroactively

by

Alain Thériault

12 February 2019 13:30

Thefinancial markets Authority has invited the victims of fraud between the 12 June 2015 and June 13, 2018 to send a claim prior to June 13, 2019. This retroactive period of intended victims who could not be compensated by the Fund according to the old criteria.

Adopted June 13, 2018, the Act aimed primarily to improve the supervision of the financial sector, the protection of deposits of money and the regime of functioning of financial institutions (L. Q. 2018, c. 23) has led to the widening of the coverage of the compensation Fund, says the regulator in its opinion.

Under this expansion, the victims of a fraud committed by a certified representative or a registered company can now be compensated even if the person at fault has offered a financial product or service that she was not authorized to provide, in writing to the Authority.

Records reactivated

All applications refused between 2015 and 2018 have already been reactivated, ” said Mr. Théberge. “By our view, we want to reach out to those have seen their request refused during this period because they did not meet the criteria, and who have not filed in another folder since the announcement of the enlargement. People who are beyond our radar and that can be compensated. “

Among the records are re-enabled, Steeve Duchaine has been settled and the victim compensated in December 2018, has revealed to Mr. Théberge. Without being authorised to exercise the activity of securities dealer, Steeve Duchaine had brought fourteen laid-off workers to invest their premium end of employment. They had lost everything. The fraudster has been sentenced to three years in prison in January 2019.

Mr. Thompson added that the advisers will not be required to provide additional contributions in order to absorb the expansion of the Fund. “According to our actuarial analyses, the Fund is sufficiently capitalized to absorb the additional number of requests which could be accepted due to the enlargement. There will be no delay in the processing of applications, despite the enlargement and the reactivation of records, ” he says.

“It was time”

The Authority asked the government to extend the law, and it was high time that it is for the Fund to play its true role, said Sylvain Théberge, in an interview with the Journal of insurance. “Most of the victims were denied compensation because, often, the people were caught in a dynamic where the individual was not registered or was not in the good hat. “

Mr. Thompson recalls the report of the Auditor general of Québec filed on the Fund to the national Assembly in the spring of 2017. “Nine applicants in 10 had been refused an allowance, most of the time for the reason that the fraudster was not a registered representative. “

The memory of Norbourg

The impetus behind the expansion of the Fund was born out of the sad Case of Norbourg, the day in 2005. “In the case of Norbourg, only 10% of the victims met the former criteria. The other had dealt with one individual who had offered a product that he was not authorized to offer. “

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