Category: Financial services

Court deems COVID-19 measures a “misfortune”

There is no doubt that the measures put in place by the federal and provincial governments are a “misfortune.”

Insurer loses battle against Quebec tax authorities

Insurer loses battle against Quebec tax authorities.

Quebec must compensate worker who became handicapped even though he worked under the table

The Quebec government has been ordered to provide lifetime benefits based on the salary a 25-year old man was earning while working under the table before he was struck by a bullet and became invalid.

Bank ordered to pay nearly $50,000 in damages

“TD Bank’s litigation strategy seems to have been inspired by a treatise that advises banks not to explain their reasons for closing accounts because that give clients less to attack in court,” held a Quebec Superior Court Justice.

Quebec financial regulator cracking down on illicit money-services businesses

Quebec’s financial watchdog is cracking down on businesses that illegally run a money-services business.

Fintech adoption in Canada doubles but still lags rest of world

Fintech adoption in Canada has doubled over the past two years but Canada still lags behind most of the world in adopting services from online financial providers.

Only 18 per cent of Canadian digitally active consumers have used two or more fintech services in the last six months, compared to 33 per cent globally, according to Ernst & Young LLP’s 2017 FinTech Adoption index.

Canadians haven’t used a fintech because they likely don’t know of any, according to the study. Twenty-two per cent of respondents reported they had not heard of any fintech. That remains however a significant improvement over two years ago when nearly one in two Canadians professed ignorance about fintechs.

But there are other reasons why Canadians have not taken to fintechs like elsewhere.

New virtual currency targeted by Quebec financial watchdog

The Quebec Financial Markets Administrative Tribunal issued a series of expansive ex parte orders prohibiting Dominic Lacroix and several of his companies from promoting and soliciting investors for a new virtual currency set to be launched.

The Tribunal, at the request of Quebec’s financial watchdog, issued a broad order barring Lacroix, DL Innov inc., Gestio inc., PlexCorps, and PlexCoin from engaging in activities for the purpose of directly or indirectly trading in any form of investment covered by the section 1 of the Quebec Securities Act, either in Quebec or from Quebec to outside of the province. Section 1 describes a wide range of forms of investment, including securities, instruments, deposits of money, shares in an investment club, and options or non-traded derivatives.

The Tribunal also ordered them to pull out advertisements or solicitations on the internet over any securities or investment vehicles, and to shut down the site and – or at the very least make them inaccessible to Quebec consumers.

The Tribunal also ordered Facebook Canada Ltd. to shut down the Facebook pages of PlexCorps and PlexCoin. Facebook declined to comment. “We can’t share details about cases,” said a spokesperson.

Desjardins Financial Security Services fined $200,000 by regulator

Desjardins Financial Security Services Inc. has been fined $200,000 and costs of $25,000 following a settlement agreement reached with the Mutual Fund Dealers Association of Canada over its failure to conduct a reasonable supervisory investigation on one of its former representatives who misappropriated $3.7 million from several clients.

Nearly $8.8 million in monetary sanctions imposed in 2016 for Quebec securities offenses

When Judge Réna Émond of the Court of Québec imposed just before the Christmas holidays fines totaling $120,000 on Danny Gagné and ISpeedzone Inc. for illegal practice as a securities dealer, it wrapped up a good year for Quebec’s financial watchdog.

Nearly $8.8 million in fines and administrative penalties were imposed on 158 individuals and firms in 2016 for various offences under laws administered by the Autorité des marchés financiers (AMF), according to the latest enforcement report by the regulator.

Anti-Money Laundering regulations: FINTRAC issues guidance

Six months after new anti-money laundering regulations were introduced, Canada’s financial intelligence group issued new guidelines dealing with so-called politically exposed persons and heads of international organizations.

The amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, published in June 2016 in the Canada Gazette, are arguably the most important changes to the anti-money laundering regime in the past eight years, according to legal experts.

The new regulations introduces a more flexible client identification regime, are expected to facilitate digital commerce, and imposes substantial new risk assessment requirements. It will require reporting entities to spend more money, resources and time to ensure that its current policies, procedures, risk assessments, and training programs are compliant.

OSFI’s operational risk guidelines puts pressure on financial institutions

Many financial institutions, already grappling with growing regulatory demands, will find it challenging to implement a new operational risk management framework imposed by the federal financial watchdog by next summer, according to financial services experts.