The Autorité des marchés financiers reports that it has received more than 600 claims to its investor compensation fund from clients who lost money in the Norbourg affair.
“We are in the process of doing a preliminary analysis of the information provided by investors,” it says, and the AMF says it intends to respond to each request.
“At this stage of the inquiry, we must stress that there is nothing to suggest there has been any misappropriation of funds by the overall distribution network. Consequently, only claims submitted by investors who acquired funds through group savings plan brokerage firms controlled by Vincent Lacroix will be reviewed at this time,” it explains.
No allegations have been brought in this case, and nothing has been proven. “All of the facts must be reviewed before any conclusion can be reached as to the existence of fraud and fraudulent practices in the distribution of the funds at issue,” it says, noting. “Allegations involving a firm’s owner do not imply that the firm’s staff is guilty of dishonest transactions.”
The AMF says that the financing behind this affair is highly complex, so it must take the time required to elicit all evidence in this case. And it spells out the evidence that investors must provide to make a claim. “To date, the claims we have received do not contain all the information required to perform a full analysis of the facts,” it says.
It also notes that investors who purchased Norbourg funds through a securities dealer with an unrestricted practice (not subject to the Act respecting the distribution of financial products and services) cannot be compensated by the Fonds d’indemnisation.
“Finally, it is important to note that the AMF’s primary mission is to protect consumers of financial products and services. If our inquiry determines that fraud occurred in the sale of Norbourg funds to some investors, the AMF will take the steps required to compensate them as provided in the rules governing the Fonds d’indemnisation,” it adds.
Quebec regulators issue update on Norbourg affair
Investor compensation fund logs more than 600 claims
- By: James Langton
- December 21, 2005 December 21, 2005
- 11:20