The Autorité des marchés financiers launched a public consultation Friday concerning the compensation of financial consumers in Quebec.
The Quebec securities regulator notes that, in recent years, public debate regarding compensation of victims of financial fraud has emerged, particularly surrounding the way in which its compensation fund, Fonds d’indemnisation des services financiers, should operate.
As part of the consultation, the AMF is seeking input from the general public and the industry on a variety of issues, including: the role of compensation as consumer protection; the accountability of consumers and representatives; the fundamental objective of a compensation system; the proper approach to consumer compensation; mechanisms to compensate victims of financial crime; products, reps and conduct covered by the compensation fund; and, funding the compensation fund and cost containment measures.
Additionally, the AMF has prepared a reference guide (which is only available in French for now) that discusses the protection mechanisms related to financial services in Québec. Its request for comment (also only in French) sets out various questions that have been raised and highlights issues related to consumer compensation.
Comments are due by Feb. 7, 2012.