All posts tagged: Companies’ Creditors Arrangement Act

More fallout from Norshield financial scandal

Nearly eight years after a high-flying hedge fund with ostensibly $1-billion in assets collapsed under the weight of a flurry of investor redemptions, the fallout from the Norshield Financial Group financial debacle continues unabated.

Quebec Superior Court recently certified a $159-million class action against the Royal Bank of Canada, less than four months after yet another financial planner was fined $225,000 by the Court of Quebec after being found guilty of 60 of the 62 charges laid against him by the provincial securities regulator in connection with the illegal distribution of products related to Norshield. So far, ten representatives have been found guilty, incurring fines totalling $628,500. Only one case remains outstanding.

Norshield, an umbrella name for a complicated array of interrelated companies offering investments to retail, institutional and high-net worth private investors, filed for receivership in June 2005 at the request of the Ontario Securities Commission (OSC).