C-26, r. 18 - Regulation respecting the indemnity fund of the Ordre des administrateurs agréés du Québec

Updated to 1 September 2012

This document has official status.

chapter C-26, r. 18

Regulation respecting the indemnity fund of the Ordre des administrateurs agréés du Québec

Professional Code

(chapter C-26, s. 89.1).

DIVISION I CONSTITUTION OF AN INDEMNITY FUND

1. The board of directors of the Ordre des administrateurs agréés du Québec establishes an indemnity fund that must be used to indemnify a claimant following the use of sums or goods for purposes other than those for which he had entrusted them to a chartered administrator in the practice of his profession.

O.C. 335-2010, s. 1.

2. The fund shall be maintained at a minimum amount of $100,000. Less any administrative expenses related to the fund, it consists of:

(1)  the sums already allocated for that purpose at 13 May 2010;

(2)  the sums allocated therefore by the board of directors;

(3)  the assessments fixed for that purpose;

(4)  the sums recovered from the offending chartered administrator under a subrogation or pursuant to section 159 of the Professional Code (chapter C-26);

(5)  interests and other income generated by the sums constituting the fund;

(6)  the sums of money which may be paid by an insurer or reinsurance company under an insurance policy subscribed by the Order for all its members;

(7)  sums received by the Order for the fund;

(8)  interest and other income generated by the chartered administrator general trust accounts.

O.C. 335-2010, s. 2.

DIVISION II ADMINISTRATION AND INVESTMENT RULES OF THE INDEMNITY FUND

3. The executive committee of the Order administrates the indemnity fund. It is authorized to enter into a group insurance or reinsurance contract for the purposes of the fund and to pay the premiums thereof out of the fund.

O.C. 335-2010, s. 3.

4. The accounting of the fund shall be separate from the general accounting of the Order.

O.C. 335-2010, s. 4.

5. The sums constituting the fund are invested by the executive committee as follows:

(1)  the portion of those sums which the executive committee intends to use on a short-term basis is deposited in a financial institution governed by the Act respecting trust companies and savings companies (chapter S-29.01), by the Bank Act (S.C. 1991, c. 46), by the Act respecting financial services cooperatives (chapter C-67.3) or by the Trust and Loan Companies Act (S.C. 1991, c. 45);

(2)  the balance is invested in accordance with article 1339 of the Civil Code.

O.C. 335-2010, s. 5.

DIVISION III CLAIMS

6. A claim must be forwarded to the secretary of the Order at its head office.

O.C. 335-2010, s. 6.

7. The secretary of the Order enters the claim on the agenda for the first meeting of the executive committee following its receipt.

O.C. 335-2010, s. 7.

8. A claim must:

(1)  be submitted in writing and under oath;

(2)  state all facts in support of the claim and be accompanied by all relevant documents;

(3)  indicate the amount claimed.

O.C. 335-2010, s. 8.

9. A claim in respect of a chartered administrator may be filed whether or not a decision of the disciplinary council, the Professions Tribunal or any other competent tribunal has been rendered.

O.C. 335-2010, s. 9.

10. In order for a claim to be receivable, it must be filed within 12 months from the time the claimant becomes aware that sums and goods have been used for purposes other than those for which they were entrusted to a chartered administrator in the practice of his profession.

O.C. 335-2010, s. 10.

11. The executive committee may extend the time provided for in section 10 if the claimant demonstrates that, for a reason beyond his control, he was unable to file his claim within that time.

O.C. 335-2010, s. 11.

12. A request made to the Order for an inquiry with regard to facts likely to give rise to a claim against the fund is deemed to be a claim within the meaning of section 8 if the request is filed within the time period contemplated in section 10.

O.C. 335-2010, s. 12.

13. Upon the request of the executive committee, of the person designated or committee designated to hold an inquiry, the claimant or the chartered administrator concerned shall provide all the information and documents relating to the claim.

O.C. 335-2010, s. 13.

14. The executive committee decides on a timely basis whether it is expedient to accept a claim in whole or in part and, where applicable, fixes the indemnity. Its decision is final.

Within the 60 days of the decision, the indemnity is paid to the claimant who signs an acquittance in favour of the Order.

O.C. 335-2010, s. 14.

15. The maximum indemnity payable from the indemnity fund for the period covering the fiscal year of the Order is limited to $100,000 for all claims concerning a chartered administrator.

Where the executive committee believes that claims in excess of that amount may be presented with regards to the same chartered administrator, it shall suspend the payment of indemnities until it has reviewed all claims concerning the chartered administrator. It shall prepare an inventory of the funds, securities and other property entrusted to the chartered administrator and advise in writing the persons likely to file a claim.

The maximum indemnity is reconsidered every 5 years, starting 13 May 2010.

O.C. 335-2010, s. 15.

16. The balance of a chartered administrator’s trust account, the sums of which have been blocked or otherwise disposed of in accordance with section 30 of the Règlement sur la comptabilité en fidéicommis des administrateurs agréés (chapter C-26, r. 16), is distributed by the secretary of the Order, at the expiry of a 60-day period starting on the date of publication of a notice to that effect in a newspaper having general circulation in the location where the chartered administrator has or had his professional domicile, among the claimants on a prorata basis according to the amounts of their claims allowed, up to the amount of the claim, less the indemnity fixed under section 14.

O.C. 335-2010, s. 16.

DIVISION IV FINAL AND TRANSITORY PROVISIONS

17. This Regulation replaces the Regulation respecting the indemnity fund of the Ordre professionnel des administrateurs agréés du Québec (R.R.Q., 1981, c. C-26, r. 12).

However, the Regulation respecting the indemnity fund of the Ordre professionnel des administrateurs agréés du Québec continues to govern the claims filed with the fund before 13 May 2010 as well as the claims filed with the fund after that date but which relate to events that took place prior to that date.

O.C. 335-2010, s. 17.

18. (Omitted).

O.C. 335-2010, s. 18.

REFERENCES

O.C. 335-2010, 2010 G.O. 2, 1051