Quebec’s finance minister says it’s time to consider creating a more comprehensive compensation fund for victims of financial sector fraud.

Raymond Bachand said Thursday that the Autorité des marchés financiers would hold consultations on compensation for victims of financial sector fraud.

“I believe it is time to hold a debate on the question of compensation for financial sector fraud victims,” he said, adding that he has asked the AMF to hold consultations this spring on the issue.

Bachand expressed his satisfaction with the $55-million settlement reached earlier this week by the various parties in the Norbourg case.

As for the possibility of creating a universal compensation fund, Bachand said he would examine the idea, but that he’s worried about adopting a solution that would impose an additional burden on investors.

“We are sensitive to cases of fraud in the financial sector and the substantial harm they can cause. In this regard, the best way to protect against fraud is to remain cautious when investing,” he added.

Bachand pointed out that the AMF already has a fund intended to compensate victims of financial fraud in relation to group savings, and activities carried out by persons registered to distribute financial products and services. “Quebec is the only jurisdiction in North America with this type of fund. While it does not cover all investors, it does provide significant protection,” he said.

Bachand noted that the AMF has ramped up its efforts to combat economic crime, doubling enforcement staff since 2005, creating specialized teams, and cutting the average time for investigations from 48 months to 12 months. The provincial government has also toughened the penalties for fraud.

IE