The Autorité des marchés financiers reports that the Court of Appeal in Quebec has upheld its right to order a firm to cease doing business through unregistered dealers.

The AMF says that the court confirmed the validity of the AMF’s decision, issued in December 2004, ordering Assumption Mutual Life Insurance Company to cease accepting insurance proposals for personal automobile credit insurance products distributed through dealers that are not registered with the AMF or not authorized to act as distributors.

“The court ruled that the AMF, in light of its mandate to protect the interests of the public, used its discretionary power under the Act respecting insurance for relevant purposes and on reasonable grounds,” the regulator says.

The AMF adds that it notified the company of its obligation to comply with the order no later than July 20, and to therefore cease accepting insurance proposals submitted by unauthorized people. “The time period will enable Assumption to take the steps necessary to abide by the Act and accordingly notify dealers that distribute automobile credit insurance products,” it says.