Michel Fragasso is stepping down as chair of the Investment Funds Institute of Canada, effective immediately.

The move comes in the wake of word that the Autorité des marchés financiers and the Royal Canadian Mounted Police are investigating the affairs of Norbourg Asset Management Inc., including Fonds Evolution Inc., Fragasso is chair of Fonds Evolution.

Desjardins Securities also issued a statement stressing that there is no link between the Evolution funds under investigation and the Desjardins Securities’ Programme Evolution.

Earlier today the AMF reported that the firm is the subject of an ongoing investigation concerning allegations of a $70 million discrepancy between its financials and assets under management; misrepresentations on the financials; among other things. None of these allegations have been proven. In the meantime, the firm has been ordered to cease business, and the minister of finance has appointed an administrator to oversee its assets.

In a statement, IFIC says that the executive advisory committee of the board of directors “has regretfully accepted the offer by Michel Fragasso to step aside as chair”.

President of RBC Asset Management Inc. Brenda Vince is taking on the position of acting chair of the IFIC board. President and chief executive officer of Peak Financial Group Robert Frances remains as vice chair.

“It is unfortunate that Michel has stepped aside,” says Vince. “He has been an integral voice at IFIC for more than a decade and has been well known for helping to build our industry in Quebec.”

IFIC adds that it is not privy to any of the circumstances regarding the AMF investigation, nor can it comment on an investigation concerning one of its members.