The Autorité des marchés financiers says that tougher penalties are needed for securities violators, among other measures, necessary to protect investors.

The AMF said that it plans to raise investor protection issues at public hearings to be held by the province’s Committee on Public Finance. “We are keenly interested in the Committee’s initiative mandate related to the protection of investors. As an agency charged with overseeing the financial markets, the AMF focuses on this matter on a daily basis. We therefore hope to raise awareness among parliamentarians and the general public about measures that have been taken and those being planned to enhance investor protection,” noted AMF president and CEO Jean St-Gelais.

Through the brief the AMF forwarded to the committee chair and the presentation that he will be giving on February 7, St-Gelais plans to remind parliamentarians of the measures that have been taken to improve the regulation and oversight of mutual funds.

He will use the opportunity to discuss regulations currently proposed by the Canadian Securities Administrators that have an impact on mutual funds, such as a registration requirement for fund managers and compliance programs.

In addition, St-Gelais plans to present a number of recommendations, some of which require legislative amendments, such as the implementation of a new liability regime governing the disclosure of information on the secondary market to enhance the right of investors to launch proceedings against companies that make misrepresentations.

As well, the AMF will be recommending stricter penalties through both greater awareness among court officials and legislative amendments intended to increase minimum penalties. “It is unacceptable for perpetrators of fraud to believe that they can have an easy ride in Quebec. Economic crimes are just as detrimental to society as are other types of crime, and they should be regarded with equal severity. The message must be clear: Persons who commit economic crimes will be severely punished,” added St-Gelais.

Finally, the AMF hopes the committee will identify the issues related to compensation paid to the victims of financial market fraud following the recent scandals.

“The AMF is not the only agency charged with suppressing financial market crime. It is important to mobilize all parties assigned to uncovering and suppressing economic crimes, including court officials and lawyers, for the purpose of launching concerted action supported by regulations that are adapted to our needs and strictly enforced,” concluded St-Gelais.