D-9.2 - Act respecting the distribution of financial products and services

Updated to 16 December 2005

This document has official status.

chapter D-9.2

Act respecting the distribution of financial products and services

TITLE I REPRESENTATIVES

CHAPTER I GENERAL PROVISIONS

1. A representative is either an insurance representative, a securities representative, a claims adjuster or a financial planner.

1998, c. 37, s. 1.

2. An insurance representative is either a representative in insurance of persons, a group insurance representative, a damage insurance agent or a damage insurance broker.

1998, c. 37, s. 2.

3. A representative in insurance of persons is a natural person who offers individual insurance products in insurance of persons or individual annuities from one or more insurers directly to the public, to a firm, to an independent representative or to an independent partnership.

A representative in insurance of persons acts as an advisor in the field of individual insurance of persons and is authorized to secure the adhesion of a person in respect of a group insurance or group annuity contract.

The following are not representatives in insurance of persons:

(1)  persons who, on behalf of an employer, a union, a professional order or an association or professional syndicate constituted under the Professional Syndicates Act (chapter S‐40), secure the adhesion of an employee of that employer or of a member of that union, professional order, association or professional syndicate in respect of a group contract in insurance of persons or a group annuity contract;

(2)  the members of a mutual benefit association that does not guarantee the payment of a benefit upon the occurrence of a risk who offer policies for the mutual benefit association.

1998, c. 37, s. 3; 2005, c. 51, s. 6.

4. A group insurance representative is a natural person who offers insurance products in group insurance of persons or group annuities from one or more insurers. A group insurance representative also acts as an advisor in the field of group insurance of persons.

Actuaries who, in pursuing activities as an actuary, offer insurance products in group insurance of persons or group annuities are not group insurance representatives.

1998, c. 37, s. 4.

5. A damage insurance agent is a natural person who, on behalf of a firm that is an insurer or that is bound by an exclusive contract with a single damage insurer, offers damage insurance products directly to the public. A damage insurance agent also acts as an advisor in the field of damage insurance.

A person who offers liability insurance products for the insurance fund established by the Autorité des marchés financiers is not a damage insurance agent.

1998, c. 37, s. 5; 2002, c. 45, s. 351; 2004, c. 37, s. 90.

6. A damage insurance broker is a natural person who offers a range of damage insurance products from several insurers directly to the public, or who offers damage insurance products from one or more insurers to a firm, an independent representative or an independent partnership. A damage insurance broker also acts as an advisor in the field of damage insurance.

1998, c. 37, s. 6.

7. A customs broker who, in pursuing activities as a customs broker, offers insurance products is not a damage insurance agent or damage insurance broker.

1998, c. 37, s. 7.

8. An insurer is an insurer holding a licence issued under the Act respecting insurance (chapter A‐32), other than a professional order authorized to insure its members’ liability.

1998, c. 37, s. 8.

9. A securities representative is either a group savings plan representative, an investment contract representative or a scholarship plan representative who does not act for a person registered as a dealer acting as principal or as agent within the meaning of the Securities Act (chapter V‐1.1).

A group savings plan representative is a natural person who offers shares or units in mutual funds.

An investment contract representative is a natural person who offers a participation in investment contracts within the meaning of the second paragraph of section 1 of the Securities Act.

A scholarship plan representative is a natural person who offers units in scholarship plans.

1998, c. 37, s. 9; 2001, c. 38, s. 97.

10. A claims adjuster is a natural person who, in the field of damage insurance, investigates insured losses, appraises damages and negotiates the settlement of claims.

The following are not claims adjusters:

(1)  persons who, in pursuing activities in a field other than insurance, carry out one of the functions of a claims adjuster;

(2)  natural persons who act as appraisers within the meaning of Title VI of the Automobile Insurance Act (chapter A‐25).

1998, c. 37, s. 10.

11. A financial planner is a natural person who uses the title of financial planner.

1998, c. 37, s. 11.

12. Subject to the provisions of Title VIII, no person may act as or purport to be a representative without holding the appropriate certificate issued by the Authority.

However, a financial institution or mutual fund may, by giving out brochures or flyers or using direct mail or any other form of publicity, invite the public to purchase insurance products, shares or units in mutual funds or units in scholarship plans.

1998, c. 37, s. 12; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

13. Representatives pursue their activities in the sectors or classes of sectors in which they are authorized to act by a certificate issued by the Authority.

The following are sectors:

 — insurance of persons;

 — group insurance of persons;

 — damage insurance;

 — claims adjustment;

 — financial planning;

 — group savings plan brokerage;

 — investment contract brokerage;

 — scholarship plan brokerage.

1998, c. 37, s. 13; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

14. No representative other than a securities representative may pursue activities as a representative unless the representative is acting for a firm, is registered as an independent representative or is a partner in or employee of only one independent partnership.

Representatives acting for several firms must disclose the name of the firm for which they are acting to the client with whom they are transacting business.

No securities representative may pursue activities as a securities representative unless the representative is acting for only one firm.

1998, c. 37, s. 14.

15. No person acting in contravention of the provisions of section 12 or 14 may claim or receive remuneration for any products sold or services rendered.

1998, c. 37, s. 15.

16. All representatives are bound to act with honesty and loyalty in their dealings with clients.

They must act with competence and professional integrity.

1998, c. 37, s. 16.

17. Where representatives require compensation from the persons with whom they transact business, they must, according to the procedure determined by regulation of the Authority, disclose to the client the fact that they also receive remuneration for the products sold and the services rendered and any other benefit determined by regulation.

1998, c. 37, s. 17; 2002, c. 45, s. 352; 2004, c. 37, s. 90.

18. No representative may make the making of a contract subject to the requirement that the client make an insurance contract.

No representative may exert undue pressure on a client or use fraudulent tactics to induce a client to purchase a financial product or service.

1998, c. 37, s. 18.

19. Representatives who, at the time a contract is made, cause a client to make an insurance contract must give the client a notice, drawn up in the manner prescribed by regulation of the Authority, stating that the client may cancel the insurance contract within 10 days of signing it.

1998, c. 37, s. 19; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

20. A client may cancel an insurance contract made at the same time as another contract, within 10 days of signing it, by sending notice by registered or certified mail.

Where such an insurance contract is cancelled, the first contract retains all its effects.

1998, c. 37, s. 20.

21. No contract may contain provisions allowing it to be amended in the event of the cancellation or termination of an insurance contract made at the same time.

However, a contract may provide that cancellation or termination of the insurance contract will entail, for the remainder of the term, the loss of the favorable conditions extended because more than one contract was made at the same time.

1998, c. 37, s. 21.

22. Representatives, financial institutions, firms and enterprises that offer financing for the purchase of goods or services and that require the debtor to subscribe for insurance to guarantee the reimbursement of the loan must give the debtor a notice, drawn up in the manner prescribed by regulation of the Authority, stating that the debtor may subscribe for insurance with the insurer and representative of the debtor’s choice provided that the insurance is considered satisfactory by the creditor, who may not refuse it without reasonable grounds. They may not subordinate the making of the contract of credit to the making of an insurance contract with the insurer they specify.

No contract of credit may stipulate that it is made subject to the condition that an insurance contract made with such an insurer remain in force until the expiry of the term, or subject to the condition that the expiry of an insurance contract will entail forfeiture of term.

The rights of the debtor under the contract of credit shall not be forfeited when the debtor cancels, terminates or withdraws from the insurance contract, provided that the debtor subscribes for insurance with another insurer that is considered satisfactory by the creditor, who may not refuse it without reasonable grounds.

1998, c. 37, s. 22; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

23. Representatives shall disclose all the information they gather about clients to the establishment to which they are attached.

Representatives acting for several firms shall disclose such information to the establishment of the firm for which they are acting at the time.

They may disclose such information only to a person authorized by law.

1998, c. 37, s. 23.

24. No representative may receive an amount deriving from a sharing of commissions except through a firm or independent partnership for which the representative acts.

1998, c. 37, s. 24.

25. No representative acting on behalf of a firm or an independent partnership may consult information held by that firm or partnership unless granted access in accordance with sections 91 and 92.

1998, c. 37, s. 25.

CHAPTER II SPECIAL PROVISIONS

DIVISION I INSURANCE REPRESENTATIVES

26. Insurance representatives must, when placing a risk with an insurer with which they have, or with which the independent partnership or firm for which they act has, a business relationship, disclose that relationship to the person with whom they are transacting business.

Any direct or indirect interest held by an insurer in the ownership of a firm or held by a firm in the ownership of an insurer, and the granting by an insurer of any benefit or other interest determined by regulation, constitutes a business relationship.

1998, c. 37, s. 26.

27. Insurance representatives must personally gather the information that is necessary to assess a client’s needs, in order to propose the insurance product that best meets those needs.

1998, c. 37, s. 27.

28. Insurance representatives must, before making an insurance contract, describe the proposed product to the client in relation to the needs identified and specify the nature of the coverage offered.

Insurance representatives must also indicate clearly to the client any particular exclusion of coverage, if any, having regard to the needs identified and provide the client with the required explanations regarding such exclusions.

1998, c. 37, s. 28; 2002, c. 45, s. 353.

29. No insurance representative may be assigned to current over-the-counter deposit and withdrawal transactions, or credit operations, except in connection with

(1)  credit referrals;

(2)  the provision of credit advice to a client with regard to the client’s financial situation and needs;

(3)  the granting of credit for the purchase of an insurance product or for investment purposes;

(4)  any other credit operation determined by government order.

A counter is any place where current deposit and withdrawal transactions are effected for a financial institution.

The Government shall, before making an order under subparagraph 4 of the first paragraph, give the Authority 60 days’ advance notice.

1998, c. 37, s. 29; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

30. No insurance representative acting on behalf of a firm or independent partnership may pursue activities as a representative in an establishment of the firm or partnership except in a place designated for that purpose where confidentiality is assured.

1998, c. 37, s. 30.

31. Representatives in insurance of persons, group insurance representatives and damage insurance brokers must, before offering an insurance product, disclose to the person with whom they are transacting business, in the manner prescribed by regulation, the names of the insurers whose products they are authorized to offer, together with the other information on those insurers prescribed by regulation.

1998, c. 37, s. 31.

32. Insurance representatives acting for a firm that is an insurer or that is bound by an exclusive contract with a single insurer must disclose that fact to the person with whom they are transacting business.

1998, c. 37, s. 32.

33. Where an insurer requires personal information of a medical or lifestyle-related nature in order to process an insurance proposal, the information must be collected using a form that is separate from the form used to collect the other information needed by the insurer.

1998, c. 37, s. 33.

34. A form used to collect information other than information of a medical or lifestyle-related nature may nevertheless contain a request for information

(1)  on whether or not the client has, during the period mentioned in the form, consulted a health professional, received treatment or undergone test for any of the diseases listed on the form;

(2)  on whether or not the client has, during the period mentioned in the form, been admitted to a hospital, clinic or health care institution.

A request for information must be formulated in such a way that the client’s answer will not reveal the disease for which the client consulted a health professional, received treatment, underwent tests or was admitted to a hospital, clinic or health care institution.

1998, c. 37, s. 34.

35. Notwithstanding section 23, an insurance representative acting for a firm, other than an insurer, offering both credit and insurance must, once a form containing information of a medical or lifestyle-related nature has been completed by the client with or without the representative’s assistance, forward it only to the insurer concerned. The representative may not keep a copy of the form, and may not disclose any information contained in the form to any other person.

1998, c. 37, s. 35.

36. Where an insured who has provided personal information of a medical or lifestyle-related nature sustains an insured loss and files a claim with the firm concerned, if it offers both credit and insurance, rather than with the insurer, no information that is brought to the attention of the insurance representative who assists the insured may be disclosed to any other person.

Notwithstanding section 23, the claim and all the required documents must be sent by the representative to the insurer only and no copy may be kept by the representative.

1998, c. 37, s. 36.

37. No information of a medical or lifestyle-related nature received from a client may be disclosed by an insurer to a firm offering both credit and insurance, even with the authorization of the client.

1998, c. 37, s. 37.

38. Damage insurance brokers offering insurance products directly to the public must offer their clients a range of products from several insurers.

1998, c. 37, s. 38.

39. Damage insurance agents and brokers must, when renewing an insurance policy, take the necessary steps to ensure that the coverage provided corresponds to the client’s needs.

1998, c. 37, s. 39.

Not in force

40. Damage insurance brokers who act as such for a firm or independent partnership that is authorized by an insurer to act as a claims adjuster must, before making an insurance contract, disclose that fact in writing to the person with whom they are transacting business.

1998, c. 37, s. 40.

41. Only a damage insurance broker acting for a firm, and who is authorized by the Authority to act as a special broker on the conditions determined by regulation of the Authority, may offer an insurance product from an outside insurer. The broker’s certificate shall include the relevant particulars.

No broker may pursue such activities unless the firm has met the requirements set out in the second paragraph of section 77.

An outside insurer is an insurer in damage insurance that does not hold a licence issued pursuant to the Act respecting insurance (chapter A‐32).

1998, c. 37, s. 41; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

42. No special broker may offer the products of an outside insurer, except in the fields of automobile insurance and surety insurance, unless justified by market scarcity.

1998, c. 37, s. 42.

43. Before placing a risk with an outside insurer, special brokers must give the client a written notice stating that the proposed insurer does not hold an insurance licence in Québec and has no establishment in Québec.

The written notice must, in addition, contain any other information determined by regulation.

1998, c. 37, s. 43.

DIVISION II CLAIMS ADJUSTERS

44. No person may use the title of claims adjuster or an abbreviation of that title without holding the appropriate certificate issued by the Authority.

The same rule applies with regard to the titles similar to the title of claims adjuster, and the abbreviations of those titles, determined by regulation.

1998, c. 37, s. 44; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

45. No claims adjuster may be authorized to act in a sector other than claims adjustment.

1998, c. 37, s. 45.

46. Notwithstanding section 45, damage insurance agents and damage insurance brokers may qualify to act as claims adjusters in respect of policies purchased through the firm for which they act. The Authority shall determine, by regulation, the circumstances in which such agents or brokers may act and the conditions of exercise with which they must comply.

1998, c. 37, s. 46; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

47. Claims adjusters acting for an insurer must, when contacting a person having suffered an insured loss, inform the person that they are acting for the insurer.

1998, c. 37, s. 47.

48. Claims adjusters who offer their services to a claimant must propose two contracts, one providing for hourly remuneration and the other providing for percentage remuneration. The client may choose the most suitable contract.

1998, c. 37, s. 48.

49. The contract is binding on the claimant only from the time the claimant receives a copy of the contract.

1998, c. 37, s. 49.

50. The claimant may cancel the contract within 10 days of receiving it by sending a notice by registered or certified mail.

In such a case, the firm, the independent representative or the independent partnership may charge only the expenses incurred to prevent any further loss.

1998, c. 37, s. 50.

DIVISION III SECURITIES REPRESENTATIVES

51. Securities representatives must, before offering a product, ensure that the product corresponds to the financial situation and investment objectives described by the client.

1998, c. 37, s. 51.

52. Securities representatives may not receive a payment made out to them, and must pay the amounts they collect for the firm for which they act into the trust account maintained by that firm.

1998, c. 37, s. 52.

53. Group savings representatives must, when offering shares or units in a mutual fund with which the firm for which they act has a business relationship, disclose that relationship to the person with whom they are transacting business.

Any direct or indirect interest held by a mutual fund in the ownership of a firm or held by a firm in the ownership of a mutual fund, and the granting by the mutual fund of any benefit or other interest determined by regulation of the Authority, constitutes a business relationship.

1998, c. 37, s. 53; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

54. Securities representatives may, on the conditions prescribed by regulation of the Authority, offer shares other than qualifying shares issued by a financial services cooperative governed by the Act respecting financial services cooperatives (chapter C‐67.3) that are not exempted from the application of Titles II to VIII of the Securities Act (chapter V‐1.1).

1998, c. 37, s. 54; 2000, c. 29, s. 636; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

55. No investment contract representative may offer investment contracts in respect of which the Authority, in issuing a receipt or prospectus exemption, imposes on the issuer the requirement that the investment contract be offered only by a dealer registered under the Securities Act (chapter V‐1.1).

1998, c. 37, s. 55; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

DIVISION IV FINANCIAL PLANNERS

56. Subject to section 60, no person may use the title of financial planner or purport to offer financial planning services without holding the appropriate certificate issued by the Authority.

The same rule applies with regard to the titles similar to the title of financial planner, and the abbreviations of those titles, determined by regulation.

1998, c. 37, s. 56; 2002, c. 45, s. 354; 2004, c. 37, s. 90.

57. Only a person holding a diploma in financial planning issued by the Institut québécois de planification financière may obtain, from the Authority, a certificate authorizing the person to use the title of financial planner.

1998, c. 37, s. 57; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

58. (Repealed).

1998, c. 37, s. 58; 2002, c. 45, s. 355.

CHAPTER III FINANCIAL PLANNERS BELONGING TO A PROFESSIONAL ORDER

59. Each of the professional orders variously known as the Ordre professionnel des avocats du Québec, the Ordre professionnel des notaires du Québec, the Ordre professionnel des comptables agréés du Québec, the Ordre professionnel des comptables en management accrédités du Québec, the Ordre professionnel des comptables généraux licenciés du Québec and the Ordre professionnel des administrateurs agréés du Québec may enter into an agreement with the Authority setting out the responsibilities of the order with regard to those of its members who wish to use the title of financial planner.

While such an agreement is in force, the provisions of this Act relating to financial planners, with the exception of the penal provisions, do not apply to such members.

However, the provisions of this chapter do not apply to a member of an order who holds a certificate issued by the Authority in a sector other than financial planning or who is an executive officer or employee of a firm registered for a sector other than financial planning, where the member acts in the field of financial planning for the firm.

1998, c. 37, s. 59; 2002, c. 45, s. 356; 2004, c. 37, s. 90.

60. The members of the order who hold a diploma in financial planning issued by the Institut québécois de planification financière are, for such time as they meet the requirements and comply with the rules determined by their order, authorized to use the title of financial planner during the term of the agreement.

1998, c. 37, s. 60.

61. The agreement shall set out the powers and obligations of the order concerning the management and supervision of its members when they pursue activities as financial planners.

The agreement shall also set out the rules of ethics and the professional requirements with which the members must comply.

1998, c. 37, s. 61.

62. The agreement must provide that the liability insurance that the order requires of its members, and the provisions relating to its indemnity fund, cover the acts of the members using the title of financial planner.

Every act performed by a member as a financial planner within the scope of an agreement is deemed to be an act performed as a member of the order to which the member belongs.

1998, c. 37, s. 62.

63. The agreement shall have a maximum term of five years, and may be renewed.

It may, following agreement, be amended at any time.

1998, c. 37, s. 63.

64. The Authority may not refuse to enter into an agreement if the rules of ethics and the professional requirements submitted by an order are at least as stringent as those applicable to financial planners holding a certificate.

1998, c. 37, s. 64; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

65. An order may require that those of its members who hold a diploma in financial planning undergo additional training, pass examinations or meet specific requirements in order to qualify to hold that title during the term of the agreement.

1998, c. 37, s. 65.

66. An order may require that those of its members who are authorized to use the title of financial planner pay specific annual dues.

1998, c. 37, s. 66.

67. Each order shall keep a register of those of its members who are authorized to use the title of financial planner. The register shall be kept available for public consultation.

1998, c. 37, s. 67.

68. Every member of an order who is authorized to use the title of financial planner and who fails to comply with a provision of the rules established by the order in respect of such a member, commits an offence that may be referred to the committee on discipline of the order concerned.

1998, c. 37, s. 68.

69. Where the Authority considers that an order has failed to exercise the responsibilities assigned to it by agreement, the Authority shall serve notice on the order at least 15 days in advance, stating the grounds that in its view justify the opinion and the order’s right to present observations.

Where, after the order has presented or has failed to present its observations, the Authority maintains its opinion that the order has failed to exercise the responsibilities assigned to it, the Authority shall refer the matter to the Minister, stating the grounds on which its opinion is based.

In such a case, the Minister may terminate the agreement.

1998, c. 37, s. 69; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

TITLE II REGISTRATION

CHAPTER I FIRMS

70. A firm is either a single-sector firm or a multi-sector firm.

A single-sector firm is a firm that offers products and services in a single sector through representatives.

A multi-sector firm is a firm that offers products and services in more than one sector.

1998, c. 37, s. 70.

71. No person may act as or purport to be a firm without being registered with the Authority.

1998, c. 37, s. 71; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

72. Only a legal person that maintains an establishment in Québec may register with the Authority to act as a firm.

The following may, in particular, register as a firm:

 — insurers;

 — banks or authorized foreign banks listed in Schedule I, II or III to the Bank Act (Statutes of Canada, 1991, chapter 46);

 — trust and loan companies within the meaning of the Trust and Loan Companies Act (Statutes of Canada, 1991, chapter 45);

 — financial services cooperatives within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3);

 — trust companies within the meaning of the Act respecting trust companies and savings companies (chapter S‐29.01);

 — securities dealers or securities advisers registered under the Securities Act (chapter V‐1.1).

For the purposes of this Act, a Lloyd’s insurer is deemed to be a legal person.

1998, c. 37, s. 72; 2000, c. 29, s. 637; 2002, c. 45, s. 357; 2002, c. 70, s. 186; 2002, c. 45, s. 357; 2004, c. 37, s. 90.

73. Insurers whose products are distributed solely by insurance representatives who are neither employed by the insurer nor bound to the insurer by an exclusive contract are not required to register with the Authority when their products are offered by such representatives.

1998, c. 37, s. 73; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

74. The Authority shall register a legal person that meets the conditions established by this Act and the regulations and that provides the Authority, in the manner prescribed by regulation, with the information and documents relating to each representative through whom the legal person intends to pursue activities, for each sector for which it is applying for registration, together with any other information or documents prescribed by regulation.

1998, c. 37, s. 74; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

75. A firm is registered for a particular sector.

1998, c. 37, s. 75.

76. Legal persons who register as firms must establish that they have subscribed for liability insurance that is consistent with the requirements determined by regulation. They must also establish that every representative acting on their behalf without being an employee has liability insurance that is consistent with the requirements determined by regulation.

Where an insurance fund has been established, such legal persons and every representative acting for them without being an employee must, instead, pay the insurance premium fixed by the Authority.

1998, c. 37, s. 76; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

77. The legal person that registers must, in addition to paying the fees required for registration, pay the contribution payable to the Fonds d’indemnisation des services financiers pursuant to section 278.

A firm that is to offer products through a special broker must also furnish security to the Authority, in the form of an insurance policy issued by an insurer in the amount determined by regulation to cover the obligations of the outside insurers concerned.

1998, c. 37, s. 77; 2002, c. 45, s. 358; 2004, c. 37, s. 90.

78. The Authority may refuse registration for a given sector, or impose restrictions or conditions for registration, where the applicant’s registration for any of the sectors listed in the second paragraph of section 13 has previously been cancelled, where the registration of a director or executive officer of the applicant has previously been cancelled, or where a director or executive officer of the applicant has previously been a partner in an independent partnership, or a director or executive officer of a firm, whose registration has previously been cancelled.

1998, c. 37, s. 78; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

79. The Authority may also refuse registration where the applicant for registration or a director or executive officer of the applicant does not, in the opinion of the Authority, show the required honesty, competence or solvency.

1998, c. 37, s. 79; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

80. A firm is responsible for any injury caused to a client by the fault of one of its representatives in the performance of the representative’s functions.

However, the firm retains the remedies available to it against the representative concerned.

1998, c. 37, s. 80.

81. While registered, a firm must pay the annual fees prescribed by regulation to the Authority.

A firm must also pay the contribution payable to the Fonds d’indemnisation des services financiers pursuant to section 278.

1998, c. 37, s. 81; 2002, c. 45, s. 359; 2004, c. 37, s. 90.

82. A firm may act in a given sector only through a representative in whose respect the firm has met the requirements set out in sections 74, 76 and 77.

No legal person that has failed to comply with the provisions of the first paragraph may claim or receive remuneration for products sold or services rendered during that period.

1998, c. 37, s. 82.

83. A firm must, while registered, maintain liability insurance that is consistent with the requirements determined by regulation or, if an insurance fund has been established, pay the insurance premium fixed by the Authority. The firm must also ensure that every representative acting on its behalf without being an employee carries liability insurance that is consistent with the requirements determined by regulation or, if an insurance fund has been established, has paid the insurance premium fixed by the Authority.

Notwithstanding sections 115, 117, 119, 121, 122 and 124, the Authority shall suspend or, if the offence is not a first offence, may cancel the registration of a firm that fails to maintain liability insurance or to pay the premium fixed, or that acts through a representative who is not an employee and has no liability insurance or has not paid the premium fixed by the Authority.

1998, c. 37, s. 83; 2002, c. 45, s. 360; 2004, c. 37, s. 90.

84. All firms and their executive officers are bound to act with honesty and loyalty in dealings with clients.

They must act with care and competence.

1998, c. 37, s. 84.

85. A firm and its executive officers shall oversee the conduct of the firm’s representatives. They shall ensure that the representatives comply with this Act and the regulations.

1998, c. 37, s. 85.

86. The firm shall ensure that its executive officers and employees comply with this Act and the regulations.

1998, c. 37, s. 86.

Not in force

86.1. (Not in force).

2004, c. 37, s. 56.

87. In no case may a firm or its officers help or, by encouragement, advice or consent, or by an authorization or order, induce another firm, an independent representative or an independent partnership to infringe any provision of this Act or the regulations.

1998, c. 37, s. 87.

88. Each firm shall keep, in Québec, the records relating to its clients, in accordance with the regulations.

The firm shall keep, in Québec, all the documents and information supplied by its representatives, and make them accessible to the Authority in the manner determined by the Authority.

1998, c. 37, s. 88; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

89. Each firm registered for an insurance sector shall, unless it has obtained consent from a client under section 92, keep its insurance records separately from its other records in accordance with the regulations.

The requirement to keep such records separately shall not operate to require a firm to maintain separate computer systems.

1998, c. 37, s. 89.

90. Each firm shall keep the information relating to its clients for the minimum period determined by regulation.

1998, c. 37, s. 90.

91. Each firm must ensure that its representatives have access only to the information necessary for the pursuit of their activities.

1998, c. 37, s. 91.

92. No firm, even a firm that on 1 October 1999 holds a client’s consent to use information on the client held by the firm for purposes unrelated to the object of the file for which the information was collected, may allow one of its representatives to have access to such information unless the client’s specific consent is obtained for that purpose.

Specific consent is consent given in a form used solely for that purpose that authorizes a firm to allow one of its representatives to have access to information on the client held by the firm.

1998, c. 37, s. 92.

93. A firm must, when seeking specific consent from a client, give the client a notice drawn up in the manner prescribed by regulation of the Authority stating that the client is free to give consent and may revoke it at any time.

1998, c. 37, s. 93; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

94. No firm may refuse to do business with a client on the sole ground that the client refuses to provide it with specific consent.

1998, c. 37, s. 94.

95. Notwithstanding sections 23 and 24 of the Deposit Insurance Act (chapter A‐26), a firm may, through an insurance representative or securities representative, collect deposits for a deposit institution. No cash deposit may be received by such a representative.

All deposits so collected must be deposited with the deposit institution for which the firm is acting.

1998, c. 37, s. 95.

96. A firm may, on the conditions prescribed by regulation, engage in brokerage activities in connection with loans secured by immovable hypothec through an insurance representative or securities representative.

1998, c. 37, s. 96.

97. Only a firm may, in a sector for which the firm is registered, grant a concession to another firm authorizing the operation of a franchise.

1998, c. 37, s. 97.

98. A firm acting through a securities representative must maintain at all times, in accordance with the regulations made by the Authority, the financial resources necessary to ensure the viability of the firm’s business.

1998, c. 37, s. 98; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

99. A firm acting through a securities representative must establish and maintain a trust account in accordance with the regulations of the Authority.

1998, c. 37, s. 99; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

100. A firm may share a commission it receives only with another firm, an independent representative or independent partnership, a real estate broker governed by the Real Estate Brokerage Act (chapter C‐73.1), a securities dealer or securities adviser governed by the Securities Act (chapter V‐1.1), a deposit institution, an insurer or a federation within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3).

The commission shall be shared in the manner determined by regulation.

The firm shall enter every sharing of a commission in a register, in accordance with the regulations.

1998, c. 37, s. 100; 2000, c. 29, s. 638.

101. Notwithstanding section 56, a single-sector firm or an independent partnership all the representatives of which are financial planners may make itself known as a financial planning firm or partnership.

Only financial planners or firms or independent partnerships acting through a financial planner may make themselves known as offering financial planning services.

1998, c. 37, s. 101.

102. Any insurance premium paid to a firm or to a representative of a firm for the account of an insurer is deemed to have been paid directly to the insurer.

The obligations of an insurer who pays sums of money to a firm for the account of an insured or the beneficiary of an insured are discharged only when the insured or beneficiary receives the money.

1998, c. 37, s. 102.

103. Every firm must provide equitable resolution of complaints filed with the firm. To that end, a firm must establish a policy dealing with

(1)  the examination of complaints and claims filed by persons having an interest in a product or service it has distributed ;

(2)  the resolution of disputes pertaining to a product or service it has distributed.

1998, c. 37, s. 103; 2002, c. 45, s. 362.

103.1. Every firm shall, each year, within two months after the closing date of its fiscal year or on any other date determined by the Authority, submit to the latter a report to that date concerning the policy it has established pursuant to section 103.

The report shall mention, in particular, the number and nature of the complaints filed.

2002, c. 45, s. 362; 2004, c. 37, s. 90.

103.2. Every firm shall inform each complainant, in writing and without delay, that a complainant may, if he or she is dissatisfied with the complaint examination procedure or its outcome, request the firm to forward a copy of the complaint file to the Authority.

Where requested by a complainant, the firm shall forward a copy of the complaint file to the Authority.

The Authority shall examine the complaint and may, where it considers it appropriate, act as a mediator if the interested parties agree. It may also retain the services of any natural person to act as a mediator or, with the authorization of the Government, enter into an agreement for that purpose with a body or a legal person.

2002, c. 45, s. 362; 2004, c. 37, s. 57.

103.3. Notwithstanding sections 9 and 83 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1), the Authority may not communicate a complaint file without the authorization of the firm that has transmitted it.

2002, c. 45, s. 362; 2004, c. 37, s. 90.

103.4. A mediator may not be compelled to disclose anything revealed to or learned by the mediator in the exercise of his or her functions or to produce a document prepared or obtained in the course of such exercise before a court of justice or before a person or body of the administrative branch exercising adjudicative functions.

Notwithstanding section 9 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1), no person may have access to a document contained in the mediation record.

2002, c. 45, s. 362.

104. A firm that terminates its association with a representative must inform the Authority, in writing, without delay.

If the firm terminates its association with a representative for reasons relating to the representative’s activities, it must inform the Authority of those reasons.

A firm that informs the Authority of such reasons incurs no civil liability thereby.

1998, c. 37, s. 104; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

105. A firm that ceases to do business with an independent representative or independent partnership for reasons relating to the representative’s or the partnership’s activities must inform the Authority of those reasons.

A firm that informs the Authority of such reasons incurs no civil liability thereby.

1998, c. 37, s. 105; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

106. A firm must, at the request of the Authority, forward any document or information concerning its activities that is required by the Authority.

1998, c. 37, s. 106; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

107. The Authority may inspect a firm as often as it considers necessary to ensure compliance with this Act and the regulations.

1998, c. 37, s. 107; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

108. Inspectors must produce identification on request and show evidence of their authority issued by the Authority.

1998, c. 37, s. 108; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

109. Inspectors may

(1)  have access, at any reasonable time, to any of a firm’s establishments;

(2)  examine and make copies of the firm’s books, registers, accounts, records and other documents;

(3)  require any document relating to the firm’s activities.

Every person having custody, possession or control of such books, registers, accounts, records and other documents must, at the request of the inspector, produce them and allow them to be examined.

1998, c. 37, s. 109.

110. Inspectors may verify access rights for any computer system to ensure that only authorized persons have access to information.

1998, c. 37, s. 110.

111. No person may hinder the work of an inspector, in particular by misleading the inspector.

1998, c. 37, s. 111.

112. The documents, books, registers, accounts and records that the Authority or the inspector may require must be produced whatever their storage medium and whatever the means by which they may be accessed.

1998, c. 37, s. 112; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

113. The inspector shall report his or her findings regarding the manner in which the firm concerned protects the personal information relating to its clients to the Commission d’accès à l’information established by the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1).

1998, c. 37, s. 113.

114. (Repealed).

1998, c. 37, s. 114; 2002, c. 45, s. 363.

115. The Authority may cancel a firm’s registration for a given sector, suspend registration or subject it to restrictions or conditions, where it considers that the firm is failing to comply with the provisions of this Act or the regulations, or where necessary in order to protect the public.

The Authority may also impose a penalty on the firm up to an amount not exceeding $100,000.

1998, c. 37, s. 115; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

116. (Repealed).

1998, c. 37, s. 116; 2002, c. 45, s. 364.

117. The Authority shall serve notice on the firm at least 15 days in advance of the date on which the firm may present its observations.

The notice shall set out the allegations made against the firm.

1998, c. 37, s. 117; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

118. (Repealed).

1998, c. 37, s. 118; 2002, c. 45, s. 365.

119. An appeal lies to the Court of Québec from any decision rendered by the Authority pursuant to section 115.

1998, c. 37, s. 119; 2002, c. 45, s. 366; 2004, c. 37, s. 90.

120. (Repealed).

1998, c. 37, s. 120; 2002, c. 45, s. 367.

121. An appeal shall not suspend a contested decision, unless a judge of the Court of Québec decides otherwise.

1998, c. 37, s. 121; 2002, c. 45, s. 368.

122. The appeal is brought by filing a notice of appeal with the secretary of the Authority within 30 days of the date of service of the contested decision.

1998, c. 37, s. 122; 2002, c. 45, s. 369, s. 499; 2004, c. 37, s. 90.

123. (Repealed).

1998, c. 37, s. 123; 2002, c. 45, s. 370.

124. The secretary of the Authority shall transmit the record to the Court of Québec.

1998, c. 37, s. 124; 2002, c. 45, s. 371; 2004, c. 37, s. 90.

125. (Repealed).

1998, c. 37, s. 125; 2002, c. 45, s. 372.

126. A firm that wishes to terminate its activities in a given sector must apply to the Authority for the revocation of its registration for that sector.

The Authority may make the revocation subject to the conditions it determines.

Despite the registration revocation, the Authority shall retain jurisdiction with regard to acts performed prior to the revocation.

1998, c. 37, s. 126; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

127. A firm whose registration has been cancelled or revoked for a given sector must return the records, books and registers relating to that sector to the Authority.

The Authority shall determine the manner of disposing of such records, books and registers.

The firm may, with the authorization of the Authority, dispose of the records, books and registers otherwise, rather than return them to the Authority.

1998, c. 37, s. 127; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

CHAPTER II INDEPENDENT REPRESENTATIVES AND INDEPENDENT PARTNERSHIPS

128. Insurance representatives in insurance of persons and group insurance representatives, other than those referred to in section 32, damage insurance brokers, financial planners and claims adjusters who do not act for a firm and who are not a partner or employee of an independent partnership must, in order to pursue their activities, register with the Authority as an independent representative in each sector or class of sectors, other than a securities sector, in which they are authorized to act pursuant to a certificate.

A partnership all the partners of which are representatives mentioned in the first paragraph may register with the Authority to act through its partners as an independent partnership in each sector, other than a securities sector, for which one of its partners is authorized to act.

1998, c. 37, s. 128; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

129. No deposit institution may offer financial products or services in any of its establishments through an independent representative or independent partnership.

1998, c. 37, s. 129.

130. A partnership applying for registration as an independent partnership must designate one partner to represent the partnership in dealings with the Authority. Once registration is issued, that partner shall become the partnership’s Authority correspondent.

The partnership may designate another partner, at any time, to act as its Authority correspondent. The change shall take effect on the date on which the Authority receives notification of the change.

1998, c. 37, s. 130; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

131. Representatives who register as independent representatives must establish that they have subscribed for liability insurance that is consistent with the requirements determined by regulation.

Where an insurance fund has been established by the Authority, the representatives must, instead, pay the insurance premium fixed by the Authority.

Partnerships that register as independent partnerships must do likewise with respect to their partners and the representatives employed by them.

1998, c. 37, s. 131; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

132. The Authority may refuse to register an applicant as an independent representative or impose restrictions or conditions for registration where the applicant’s registration for that sector has previously been cancelled.

The Authority may also refuse to register a partnership for a particular sector where the registration of one of the partners has previously been cancelled, or where one of the partners was previously a partner in an independent partnership or a director or executive officer of a firm whose registration has previously been cancelled.

1998, c. 37, s. 132; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

133. Representatives who register as independent representatives must pay the contribution payable to the Fonds d’indemnisation des services financiers pursuant to section 278, in addition to the fees required for registration.

A partnership registered as an independent partnership must make such payments in respect of each partner and each representative employed by it.

1998, c. 37, s. 133; 2002, c. 45, s. 373.

134. An independent partnership may, at any time, employ a representative to pursue activities in a sector for which the partnership is registered. The partnership may act through the representative as soon as the requirements set out in sections 131 and 133 have been met.

1998, c. 37, s. 134.

135. While registered, independent representatives and independent partnerships must, annually, pay the fees prescribed by regulation to the Authority.

Independent representatives must also pay the contribution payable to the Fonds d’indemnisation des services financiers pursuant to section 278.

An independent partnership must make such payments in respect of each partner and each representative employed by it.

1998, c. 37, s. 135; 2002, c. 45, s. 374; 2004, c. 37, s. 90.

136. Independent representatives must, while registered, maintain liability insurance that is consistent with the requirements determined by regulation or, if an insurance fund has been established, pay the insurance premium fixed by the Authority.

Independent partnerships must do likewise with respect to their partners and the representatives they employ.

Notwithstanding sections 115, 117, 119, 121, 122 and 124, the Authority shall suspend or, if the offence is not a first offence, may cancel the registration of an independent representative that fails to maintain liability insurance or to pay the premium fixed.

1998, c. 37, s. 136; 2002, c. 45, s. 375; 2004, c. 37, s. 90.

137. An independent partnership must oversee the conduct of its representatives. It must ensure that its representatives and employees comply with this Act and the regulations.

1998, c. 37, s. 137.

138. In no case may an independent representative or a representative who is a partner in or employee of an independent partnership help or, by encouragement, advice or consent, or by an authorization or order, induce a representative, a firm or an independent partnership to infringe any provision of this Act or the regulations.

1998, c. 37, s. 138.

139. Each independent representative and independent partnership shall keep client-related records in Québec, in accordance with the regulations, in a place that is the establishment of the representative or the partnership, and shall inform the Authority of the location and address of that place.

The information collected on clients by an independent representative shall be conserved and made accessible to the Authority, and may be disclosed only to an insurer whose products are offered by the independent representative or to a person to whom disclosure is authorized by law. Where a financial planner is registered as an independent representative, the information may only be disclosed to a person to whom disclosure is authorized by law.

The same requirements apply to an independent partnership.

1998, c. 37, s. 139; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

140. Each independent partnership registered for an insurance sector shall, unless it has received consent from a client under section 92, keep its insurance records separately from its other records, in accordance with the regulations.

The requirement to keep such records separately shall not operate to require an independent partnership to maintain separate computer systems.

1998, c. 37, s. 140.

141. Independent representatives registered for an insurance sector and independent partnerships acting through an insurance representative may, on the conditions prescribed by regulation, engage in brokerage operations relating to loans secured by immovable hypothec.

1998, c. 37, s. 141.

142. Independent representatives registered for an insurance sector and independent partnerships acting through an insurance representative may, notwithstanding sections 23 and 24 of the Deposit Insurance Act (chapter A‐26), receive deposits on behalf of a deposit institution. No such representative may, however, receive a deposit of money.

Such deposits must be deposited with the deposit institution on whose behalf the representative acts.

1998, c. 37, s. 142.

143. No independent representative or independent partnership may share a commission except with another independent representative or independent partnership, a firm that is not a deposit institution or a real estate broker governed by the Real Estate Brokerage Act (chapter C‐73.1).

The commission shall be shared in accordance with the procedure determined by regulation.

Independent representatives and independent partnerships shall enter every sharing of a commission in a register in the manner prescribed by regulation.

1998, c. 37, s. 143.

144. An independent partnership must inform the Authority immediately, in writing, when the employment of a representative is terminated or when a partner leaves the partnership.

Where the employment is terminated or the partner leaves the partnership for reasons relating to the pursuit of the representative’s or the partner’s activities, the partnership must inform the Authority of those reasons.

A partnership that informs the Authority of such reasons incurs no civil liability thereby.

1998, c. 37, s. 144; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

145. (Repealed).

1998, c. 37, s. 145; 2002, c. 45, s. 376.

146. Sections 74, 75, 102, 103 to 103.4, 106 to 113, 115, 117, 119, 121, 122, 124 and 126, adapted as required, apply to independent representatives.

The first paragraph of section 72 and sections 74, 75, 79, 82, 84, 90, 91, 102, 103 to 103.2, 106 to 113, 115, 117, 119, 121, 122, 124, 126 and 127, adapted as required, apply to independent partnerships.

1998, c. 37, s. 146; 2002, c. 45, s. 377.

CHAPTER III OWNERSHIP OF DAMAGE INSURANCE FIRMS

147. For the purposes of this chapter,

— “financial institution” means a financial institution other than an insurer engaging exclusively in the business of reinsurance;

— “firm” means a firm registered for the damage insurance sector that acts through a damage insurance broker and does not engage exclusively in the business of reinsurance;

— “financial group” means a group made up of all or some of the following legal persons: a federation governed by the Act respecting financial services cooperatives (chapter C-67.3) and the legal persons that are members of the federation.

Any other group of legal persons composed of a financial institution and a legal person affiliated with the financial institution is also a financial group;

— “affiliated legal person” means a legal person that is controlled by or that controls another legal person.

A legal person affiliated with another legal person is deemed to be affiliated with any other legal person affiliated with that legal person;

— “controlled legal person” means a legal person in which more than 50% of the voting rights attached to its shares are held directly or indirectly by another legal person, or a majority of the directors of which can be elected by another legal person;

— “legal person related to a financial institution” or “legal person related to a financial group” means a legal person in which more than 20% of the shares or voting rights attached to the shares are held directly or indirectly by financial institutions or financial groups.

1998, c. 37, s. 147; 2000, c. 29, s. 639.

148. Not more than 20% of the shares of a firm or voting rights attached to its shares may be held directly or indirectly by financial institutions, financial groups or legal persons related thereto.

However, the first paragraph shall not operate to prevent a firm from allotting its shares or registering a transfer of its shares to give effect to a contract entered into before 21 December 1988.

1998, c. 37, s. 148.

149. No financial institution, financial group or related legal person may use a name previously used by an independent representative having pursued activities as a damage insurance broker or the name of an independent partnership or firm having pursued activities through a damage insurance broker.

1998, c. 37, s. 149.

150. A firm that is not in compliance with the provisions of section 148 may not act through a damage insurance broker or purport to be acting through a damage insurance broker.

1998, c. 37, s. 150.

151. Section 150 does not apply, in relation to the percentage of shares, to a firm incorporated in Canada if the firm’s shares were listed on a Canadian stock exchange on 21 December 1988.

Section 150 does not apply to a firm the shares of which are held

(1)  by another firm incorporated in Canada the shares of which were listed on a Canadian stock exchange on 21 December 1988, as long as that firm does not become, in relation to the percentage of voting rights, a related legal person; or

(2)  by a legal person incorporated in Canada the shares of which were listed on a Canadian stock exchange on 21 December 1988 and that on that date controlled a firm referred to in the first paragraph, as long as that legal person does not become, in relation to the percentage of voting rights, a related legal person.

1998, c. 37, s. 151.

152. Section 150 does not apply to a firm referred to therein where the percentage of shares or voting rights attached to its shares exceeded 20% on 21 December 1988. However, the percentage may not be increased except to give effect to a contract entered into before 21 December 1988.

Where, on or after 22 December 1988, a firm referred to in the first paragraph allots its shares or registers a transfer of its shares and the effect thereof is to reduce the percentage of its shares or voting rights attached to its shares held directly or indirectly by financial institutions, financial groups or related legal persons, the new percentage shall become the highest percentage of shares or voting rights attached to the shares that may be held directly or indirectly by financial institutions, financial groups or related legal persons. However, this paragraph shall not operate to prevent a firm from allotting its shares or registering a transfer of its shares to give effect to a contract entered into before 21 December 1988.

The first and second paragraphs shall cease to apply to a firm referred to therein if the percentage of shares or voting rights attached to the shares reaches 20%.

1998, c. 37, s. 152.

153. No firm referred to in the first paragraph of section 152 may, as long as more than 20% of its shares or voting rights attached to its shares are held directly or indirectly by financial institutions, financial groups or related legal persons, directly or indirectly hold shares in another firm or, on or after 11 May 1989, grant it a concession or acquire its business.

A firm referred to in the first paragraph that on 21 December 1988 holds, directly or indirectly, shares of another firm may continue to hold those shares. However, the percentage of such shares may not be increased on or after 22 December 1988, and the percentage of voting rights attached to such shares may not be increased on or after 11 May 1989 and, if either percentage is decreased on or after the applicable date, the new percentage shall become the highest percentage of such shares or such voting rights that the firm may hold, as long as more than 20% of its shares or voting rights attached to its shares are held directly or indirectly by financial institutions, financial groups or related legal persons.

The first and second paragraphs do not apply to a firm incorporated in Canada the shares of which are listed on a Canadian stock exchange on 21 December 1988.

1998, c. 37, s. 153.

154. A firm that is not in compliance with the provisions of section 152 or 153 may not act through a damage insurance broker or purport to be acting through a damage insurance broker.

1998, c. 37, s. 154.

155. Section 148 does not apply to a firm the shares of which are listed on a stock exchange.

However, not more than 49% of the shares of such a firm or voting rights attached to its shares may be held directly or indirectly by a financial institution, financial group or legal person related thereto.

1998, c. 37, s. 155.

156. No firm referred to in section 155 may, as long as more than 49% of its shares or voting rights attached to its shares are held, directly or indirectly, by a financial institution, financial group or legal person related thereto, directly or indirectly hold the shares of another firm, grant it a concession or acquire its business.

1998, c. 37, s. 156.

157. A firm referred to in section 155 that is not in compliance with sections 155 and 156 may not act through a damage insurance broker or purport to be acting through a damage insurance broker.

1998, c. 37, s. 157.

TITLE III AUTORITÉ DES MARCHÉS FINANCIERS

O.C. 495-2004, s. 1; 2004, c. 37, s. 90.

CHAPTER I

Repealed, 2002, c. 45, s. 379.

2002, c. 45, s. 379.

158. (Repealed).

1998, c. 37, s. 158; 2002, c. 45, s. 379.

159. (Repealed).

1998, c. 37, s. 159; 2002, c. 45, s. 379.

160. (Repealed).

1998, c. 37, s. 160; 2000, c. 8, s. 120; 2000, c. 15, s. 163; 2002, c. 45, s. 379.

161. (Repealed).

1998, c. 37, s. 161; 2002, c. 45, s. 379.

162. (Repealed).

1998, c. 37, s. 162; 2002, c. 45, s. 379.

163. (Repealed).

1998, c. 37, s. 163; 2002, c. 45, s. 379.

164. (Repealed).

1998, c. 37, s. 164; 2002, c. 45, s. 379.

165. (Repealed).

1998, c. 37, s. 165; 2002, c. 45, s. 379.

166. (Repealed).

1998, c. 37, s. 166; 2002, c. 45, s. 379.

167. (Repealed).

1998, c. 37, s. 167; 2002, c. 45, s. 379.

168. (Repealed).

1998, c. 37, s. 168; 2002, c. 45, s. 379.

169. (Repealed).

1998, c. 37, s. 169; 2002, c. 45, s. 379.

170. (Repealed).

1998, c. 37, s. 170; 2002, c. 45, s. 379.

171. (Repealed).

1998, c. 37, s. 171; 2002, c. 45, s. 379.

172. (Repealed).

1998, c. 37, s. 172; 2002, c. 45, s. 379.

173. (Repealed).

1998, c. 37, s. 173; 2002, c. 45, s. 379.

174. (Repealed).

1998, c. 37, s. 174; 2002, c. 45, s. 379.

175. (Repealed).

1998, c. 37, s. 175; 2002, c. 45, s. 379.

176. (Repealed).

1998, c. 37, s. 176; 2002, c. 45, s. 379.

177. (Repealed).

1998, c. 37, s. 177; 2002, c. 45, s. 379.

178. (Repealed).

1998, c. 37, s. 178; 2002, c. 45, s. 379.

179. (Repealed).

1998, c. 37, s. 179; 2002, c. 45, s. 379.

180. (Repealed).

1998, c. 37, s. 180; 2002, c. 45, s. 379.

181. (Repealed).

1998, c. 37, s. 181; 2002, c. 45, s. 379.

182. (Repealed).

1998, c. 37, s. 182; 2002, c. 45, s. 379.

183. (Repealed).

1998, c. 37, s. 183; 2002, c. 45, s. 379.

CHAPTER II FUNCTIONS AND POWERS OF THE AUTHORITY

2002, c. 45, s. 380; 2004, c. 37, s. 90.

184. The Authority’s mission is to see to the protection of the public regarding the exercise of the activities governed by this Act.

The Authority shall ensure compliance with this Act and the regulations governing certificate holders, firms, independent representatives and independent partnerships.

1998, c. 37, s. 184; 2002, c. 45, s. 381; 2004, c. 37, s. 90.

185. The Authority may make recommendations to the Minister concerning any question relating to the distribution of financial products and services.

The Authority must advise the Minister on any question submitted by the Minister relating to the matters that fall within its jurisdiction.

1998, c. 37, s. 185; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

186. The Authority shall receive the complaints made against certificate holders, firms, independent representatives and independent partnerships.

1998, c. 37, s. 186; 2002, c. 45, s. 382; 2004, c. 37, s. 90.

186.1. In the case of a complaint filed against a certificate holder, the Authority shall advise the firm or the independent partnership to which the certificate holder is attached of the filing of the complaint and its nature.

The Authority shall also advise the certificate holder.

2002, c. 45, s. 383; 2004, c. 37, s. 90.

187. The Authority shall also receive the complaints made against distributors.

The Authority shall investigate complaints of a penal nature and, where it considers that there exists sufficient evidence that an offence has been committed, it shall institute proceedings.

The Authority shall examine complaints of a civil nature and may forward them to the distributor and insurer concerned.

The Authority shall, in a periodic report published in its bulletin, state the types of civil complaints it has received.

1998, c. 37, s. 187; O.C. 495-2004, s. 2; 2004, c. 37, s. 90.

188. The Authority shall forward every complaint it receives concerning a representative to the syndic having jurisdiction, together with any relevant information or document relating to the complaint.

1998, c. 37, s. 188; 2002, c. 45, s. 385; 2004, c. 37, s. 90.

189. The Authority may enter into agreements with the Government, a government body or any other person in Québec.

The Authority may, in accordance with the applicable legislative provisions, enter into agreements with any commission, council, bureau, office or any person that, under the legislation of a province or state or of another country, is empowered to supervise or regulate matters similar to those within its jurisdiction, in order to facilitate the administration of this Act.

The agreement may provide for the exchange of personal information to prevent, detect or repress violations of the law.

1998, c. 37, s. 189; 2002, c. 45, s. 386; 2004, c. 37, s. 90.

189.1. The Authority may, with the authorization of the Government, enter into an agreement with any body or legal person concerning the examination of complaints filed by persons dissatisfied with the examination procedure or its outcome.

Such an agreement may provide that the body or legal person may, where it considers it advisable, act as a mediator if the interested parties agree.

2002, c. 45, s. 387; 2004, c. 37, s. 90.

190. The Authority may enter into an agreement with the Institut québécois de planification financière concerning professional development in financial planning.

1998, c. 37, s. 190; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

191. The Authority may exchange personal information with a syndic for the purpose of detecting or repressing offences under this Act or the regulations.

1998, c. 37, s. 191; 2002, c. 45, s. 388; 2004, c. 37, s. 90.

192. The Authority may request from a chamber or a syndic any information or document necessary for the exercise of its functions.

1998, c. 37, s. 192; 2002, c. 45, s. 389; 2004, c. 37, s. 90.

193. The Authority shall publish, periodically, an information bulletin to inform representatives, firms, and independent representatives and independent partnerships, as well as the general public, about its activities. The bulletin must, in particular, include the roll of hearings of the discipline committees, a summary of the decisions made by the Authority in respect of firms, independent representatives and independent partnerships and restricted certificate holders, the decisions made in respect of the representatives, together with a summary of the Authority’s report on activities.

1998, c. 37, s. 193; O.C. 495-2004, s. 3; 2004, c. 37, s. 90.

194. The Authority shall publish its draft regulations in the information bulletin.

Every draft regulation must be published with a notice stating the time that must elapse before the draft regulation may be made or be submitted for approval.

The Authority shall also publish all the regulations approved by the Government in the information bulletin.

1998, c. 37, s. 194; 2002, c. 45, s. 391; 2004, c. 37, s. 90.

195. (Repealed).

1998, c. 37, s. 195; 2002, c. 45, s. 392.

196. The Authority may determine by regulation, for each sector and class of sectors, the requirements with which the liability insurance contracts of firms, representatives acting on behalf of a firm without being employees, independent representatives and independent partnerships must be consistent.

The regulation may, in particular, prescribe the extent of coverage, the amount covered per claim, the amount of the deductible and the notice that must be given before a contract is cancelled.

1998, c. 37, s. 196; 2002, c. 45, s. 393; 2004, c. 37, s. 90.

197. Insurers must, within the time prescribed by regulation, advise the Authority of their intention not to renew or to cancel the liability insurance contract of an independent representative, independent partnership or firm.

Insurers must also advise the Authority upon receiving a notice cancelling such a contract from an independent representative, independent partnership or firm.

Independent representatives, independent partnerships and firms must, at least 30 days before the date of expiry of their liability insurance contract, either renew the contract or make a contract with another insurer for a period of at least one year beginning on the day following the date of expiry.

1998, c. 37, s. 197; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

198. The Authority may establish an insurance fund and require firms, representatives acting for firms without being employees, independent representatives or independent partnerships to subscribe to it.

The Authority shall fix, by regulation, the premium to be paid by each firm, independent representative or independent partnership on the basis of the number of representatives involved, the risk presented by each sector or class of sectors, the fact that a trust fund is or is not maintained and any other criteria determined in the regulation.

The Authority shall determine by regulation those required to subscribe to the insurance fund, on the basis of any criteria set out in the regulation.

Sections 174.13 to 174.16 of the Act respecting insurance (chapter A‐32), adapted as required, apply to any insurance fund established by the Authority.

1998, c. 37, s. 198; 2002, c. 45, s. 394; 2004, c. 37, s. 59.

199. The insurance fund established by the Authority shall be authorized to offer liability insurance to any person whose activities relate to a sector to which this Act applies.

1998, c. 37, s. 199; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

200. The Authority may, for each discipline, determine by regulation

(1)  the minimum qualifications required to obtain a certificate, the courses that an applicant for a certificate must take, and the rules relating to the preparation and passing of prescribed examinations;

(2)  the cases in which the requirements of paragraph 1 do not apply;

(3)  the rules relating to compulsory training periods, the acts that trainees may perform during training periods, notwithstanding section 12, and the rules relating to the obligations of training supervisors;

(4)  the cases in which training periods are not compulsory;

(5)  the other conditions for obtaining a certificate;

(5.1)  the rules relating to compulsory professional development of financial planners, after consultation with the Institut québécois de planification financière;

(6)  the titles or abbreviations that a representative may use, the rules for obtaining authorization to use such titles and abbreviations, and the rules relating to their use;

(7)  the various classes of sectors;

(8)  the information that a representative must disclose to a person from whom the representative requires compensation, and the manner of disclosing the information;

(9)  the information and documents that a representative or prospective representative must furnish.

1998, c. 37, s. 200; 2002, c. 45, s. 395; 2004, c. 37, s. 90.

201. The Authority may, by regulation, determine the rules of ethics applicable to securities representatives.

1998, c. 37, s. 201; 2002, c. 45, s. 396; 2004, c. 37, s. 90.

202. The Authority may, for each sector, determine by regulation

(1)  the occupations that are incompatible with the pursuit of activities as a representative;

(2)  the conditions and restrictions that apply to the pursuit of activities as a representative;

(3)  the rules applicable to client solicitation and the representations made by representatives;

(4)  the product information that representatives must give to clients, and the manner of giving such information.

1998, c. 37, s. 202; 2002, c. 45, s. 397; 2004, c. 37, s. 90.

202.1. The Authority shall determine, by regulation,

(1)  the rules of ethics applicable to representatives, other than securities representatives, of each sector or class of sector;

(2)  the rules governing compulsory professional development for representatives of each sector or class of sector other than financial planning.

2002, c. 45, s. 398; 2004, c. 37, s. 90.

203. The Authority may, for each sector, make regulations to determine

(1)  the term of a representative’s certificate;

(2)  the fees payable by a representative for the issue and renewal of a certificate;

(3)  the rules and procedure governing the issue and renewal of certificates;

(4)  the particulars that a certificate may contain;

(5)  the forms that must be used to meet a requirement prescribed by regulation, the medium of such forms, and the manner in which they are to be used;

(6)  the manner in which and time within which the Authority must be informed by a representative of any change affecting the information entered in the register in respect of that representative.

1998, c. 37, s. 203; 2002, c. 45, s. 399; 2004, c. 37, s. 90.

204. The Authority may exercise the powers conferred on it by sections 200 to 203 according to such classes of sector it may determine.

1998, c. 37, s. 204; 2002, c. 45, s. 401; 2004, c. 37, s. 90.

205. The Authority may, for each sector, allow representatives of a given sector to pursue activities in Québec from a base in another province or another country, and fix the professional requirements for the pursuit of such activities.

1998, c. 37, s. 205; 2002, c. 45, s. 402; 2004, c. 37, s. 90.

206. The Authority may, by regulation, determine the conditions to be met by an insurance representative or securities representative before engaging in brokerage operations in connection with loans secured by immovable hypothec.

1998, c. 37, s. 206; O.C. 495-2004, s. 4; 2004, c. 37, s. 90.

207. The Authority may, by regulation, determine what constitutes a business relationship and the rules relating to the disclosure of business relationships for the purposes of sections 26 and 53.

1998, c. 37, s. 207; 2002, c. 45, s. 404; 2004, c. 37, s. 90.

208. The Authority may, by regulation, determine the information that must be disclosed by representatives in insurance of persons, group insurance representatives and damage insurance brokers to the person with whom they are transacting business concerning the insurers whose products they offer, and the manner in which the information must be disclosed.

1998, c. 37, s. 208; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

209. The Authority may, by regulation, determine the form and content of notices under sections 19 and 22 and the form and the content of forms for seeking specific consent under section 93.

1998, c. 37, s. 209; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

210. The Authority may, by regulation, determine the rules for drafting and presenting distribution guides.

1998, c. 37, s. 210; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

211. The Authority may, by regulation, determine the formalities, conditions and restrictions that apply to representatives in insurance of persons upon replacing an insurance policy.

1998, c. 37, s. 211; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

212. The Authority may, by regulation, determine

(1)  the conditions to be met by a damage insurance broker in order to be authorized to act as a special broker, and the documents and reports that the broker must send to the Authority;

(2)  the amount or method of calculating the security that the firm for which such a broker is acting must furnish to the Authority to secure the obligations of the outside insurers whose products are distributed by the broker;

(3)  the information that the broker must give to clients in writing before placing a risk.

1998, c. 37, s. 212; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

213. The Authority may, by regulation, determine the circumstances under which a damage insurance agent or a damage insurance broker may be authorized to act as a claims adjuster and the conditions of exercise with which the agent or broker must comply.

Such a regulation may provide for rules that differ according to whether they apply to a damage insurance agent or a damage insurance broker.

1998, c. 37, s. 213; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

214. The Authority may, by regulation, determine the conditions to be met by a securities representative offering shares other than qualifying shares issued by a financial services cooperative governed by the Act respecting financial services cooperatives (chapter C‐67.3) that is not exempted from the application of Titles II to VIII of the Securities Act (chapter V‐1.1).

1998, c. 37, s. 214; 2000, c. 29, s. 640; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

215. The Authority may, by regulation, determine the titles similar to the title of financial planner or claims adjuster, and the abbreviations, that may not be used.

1998, c. 37, s. 215; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

216. The Authority may, by regulation,

(1)  determine special rules applicable to a natural person who, in accordance with the legislation of another province or state or of another country, acts as an insurance representative or claims adjuster and applies for a certificate to act as such in Québec;

(2)  determine the activities that such a person may pursue;

(3)  set conditions and restrictions applicable to the pursuit of such activities.

1998, c. 37, s. 216; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

217. A regulation made pursuant to this Act shall be submitted to the Government for approval with or without amendment.

The Government may make any regulation the Authority fails to make within the time the Government indicates.

1998, c. 37, s. 217; 2002, c. 45, s. 405; 2004, c. 37, s. 90.

217.1. The Authority may, by regulation, conditionally or unconditionally exempt a group of persons from some or all of the requirements of this Act or of the regulations applicable to a securities sector.

2004, c. 37, s. 60.

218. The Authority may cancel, suspend or impose restrictions or conditions on a certificate where the certificate holder

(1)  has made an assignment of property or has been placed under a receiving order pursuant to the Bankruptcy and Insolvency Act (Revised Statutes of Canada, 1985, chapter B-3);

(2)  has been convicted by a court inside or outside Canada of a criminal act or indictable offence which, in the opinion of the Authority, is linked to the pursuit of the activity of representative, or has pleaded guilty to such an act or offence;

(3)  has been assigned a tutor, curator or adviser.

1998, c. 37, s. 218; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

219. The Authority may, for a given sector, refuse to issue or renew a certificate or impose restrictions or conditions on the certificate

(1)  where the applicant’s certificate or right to transact business, in a sector referred to in the second paragraph of section 13, has previously been cancelled or suspended, or where restrictions or conditions have previously been imposed on the applicant’s certificate, by the discipline committee or by a body in Québec, another province or another state that is responsible for supervising and monitoring persons acting as representatives;

(2)  where the applicant has previously been convicted by a court inside or outside Canada of an indictable offence or criminal act which, in the opinion of the Authority, is linked to the pursuit of the activity of representative, or has pleaded guilty to such an offence or act;

(3)  where the applicant has been assigned a tutor, curator or adviser;

(4)  where the applicant has made an assignment of property or has been placed under a receiving order pursuant to the Bankruptcy and Insolvency Act (Revised Statutes of Canada, 1985, chapter B-3).

1998, c. 37, s. 219; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

220. The Authority may, for a given sector, refuse to issue a certificate where in its opinion the applicant does not possess the degree of honesty it considers necessary to pursue activities in that sector, or is in a situation it considers to be incompatible with the pursuit of activities in that sector.

1998, c. 37, s. 220; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

221. (Repealed).

1998, c. 37, s. 221; 2002, c. 45, s. 406.

222. A certificate issued by the Authority must specify each sector or class of sectors for which the holder is authorized to act, together with the conditions and restrictions to which the holder is subject.

1998, c. 37, s. 222; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

223. The Authority may, by regulation, determine for each sector

(1)  the rules applicable to the registration of firms, independent representatives and independent partnerships;

(2)  the experience required of a representative in order to register as an independent representative or become a partner in or employee of an independent partnership;

(3)  the cases in which the requirements prescribed under subparagraph 2 do not apply;

(4)  the information and documents to be provided by applicants for registration;

(5)  the rules relating to maintenance of registration;

(6)  the rules applicable to client solicitation;

(7)  the rules relating to advertisements and representations made by firms, independent representatives and independent partnerships, and the elements they may contain;

(8)  the rules relating to the keeping of records and the register of commissions;

(9)  the manner in which commissions are to be shared, and the rules relating to their entry in the register;

(10)  (subparagraph repealed);

(11)  the nature, form and content of the books and other registers to be kept by firms, independent representatives and independent partnerships;

(12)  the rules relating to the use, conservation and destruction of the records, books and registers to be kept by firms, independent representatives and independent partnerships;

(13)  the titles and abbreviations under which a firm, an independent representative or an independent partnership may make itself known;

(14)  the forms that firms, independent representatives and independent partnerships must use to meet a requirement prescribed by regulation, the medium of such forms, and the manner in which they are to be used;

(15)  the procedure by which and time within which firms, independent representatives and independent partnerships must advise the Authority of any change affecting the information entered in the register in their respect.

1998, c. 37, s. 223; 2002, c. 45, s. 407; 2004, c. 37, s. 90.

224. The Authority shall, by regulation, determine the rules applicable to franchisers and franchisees.

1998, c. 37, s. 224; 2002, c. 45, s. 408; 2004, c. 37, s. 90.

224.1. The Authority may, by regulation, determine the conditions to be met by an executive officer of a firm acting through a securities representative.

2002, c. 45, s. 409; 2004, c. 37, s. 90.

Not in force

224.2. (Not in force).

2004, c. 37, s. 61.

225. The Authority shall, by regulation, determine for each sector the fees payable for registration and the annual fees payable to maintain registration. In the case of a firm or an independent partnership, the fees shall be determined on the basis of the number of establishments the firm or partnership maintains or proposes to maintain in Québec, the number of representatives through whom it pursues or proposes to pursue its activities, and any other criteria the Authority considers relevant.

1998, c. 37, s. 225; 2002, c. 45, s. 410; 2004, c. 37, s. 90.

226. The Authority shall, by regulation, determine the fees payable for any formality or other measure prescribed by this Act or the regulations, and the charges for the goods and services provided by the Authority.

1998, c. 37, s. 226; 2002, c. 45, s. 411; 2004, c. 37, s. 90.

227. The Authority may, by regulation, determine

(1)  the rules relating to the establishment and maintenance of the trust account that must be maintained by a firm acting through a securities representative;

(2)  the rules relating to the financial resources that must be maintained by a firm acting through a securities representative.

1998, c. 37, s. 227; 2002, c. 45, s. 412; 2004, c. 37, s. 90.

228. The Authority shall, by regulation, determine

(1)  (paragraph repealed);

(2)  (paragraph repealed);

(3)  the rules relating to the administration of the compensation fund;

(4)  the conditions governing the eligibility of a claim presented to the compensation fund and the maximum amount of compensation that may be paid.

1998, c. 37, s. 228; 2002, c. 45, s. 413; 2004, c. 37, s. 90.

228.1. The Authority may, on the conditions it determines, exempt a person or a group of persons from some or all of the requirements prescribed by this Act or by regulation that are applicable to a securities sector if it considers that the exemption does not undermine the protection of investors.

The decision is without appeal.

2004, c. 37, s. 62.

228.2. The Authority may deny the benefit of an exemption under a regulation whenever it considers it necessary to do so to protect investors.

In particular, it may deny the benefit of an exemption to any person who has

(1)  made improper use of such an exemption;

(2)  contravened this Act or the regulations; or

(3)  contravened any other securities provision.

2004, c. 37, s. 62.

229. The Authority may, by motion, apply to a judge of the Superior Court for an injunction in any matter relating to this Act or the regulations.

A motion for an injunction constitutes a proceeding.

The procedure provided for in the Code of Civil Procedure (chapter C‐25) applies, except that the Authority is not required to furnish security.

1998, c. 37, s. 229; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

230. On application by the Authority, the Superior Court may prohibit a person from acting as a director or executive officer of a firm where the person has, on more than one occasion, acted as such for a firm while under a sanction imposed under section 115.

1998, c. 37, s. 230; 2002, c. 45, s. 414; 2004, c. 37, s. 90.

231. The Authority may, on its own initiative and without notice, intervene in any proceeding in which a question relating to this Act or a regulation under it has been raised.

1998, c. 37, s. 231; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

232. The Minister may request that the Authority take into account the guidelines and objectives indicated by the Minister in performing its functions.

The report on activities of the Authority must indicate the steps it has taken in that respect.

1998, c. 37, s. 232; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

233. (Repealed).

1998, c. 37, s. 233; 2002, c. 45, s. 415.

CHAPTER III DOCUMENTS AND REGISTERS

234. The Authority shall keep and maintain the register of the representatives to whom it has issued a certificate.

The register shall, in the case of a representative acting for a firm, contain the representative’s name, the name of each firm for which the representative acts, the address of each establishment to which the representative is attached, each sector or class of sectors for which the representative is authorized to act, the conditions or restrictions appearing on the representative’s certificate and the term of the certificate.

In the case of an independent representative, the register shall contain the representative’s name, the address of the representative’s establishment, each sector or class of sectors for which the representative is authorized to act, the conditions or restrictions appearing on the representative’s certificate and the term of the certificate.

In the case of a representative who is a partner in or employee of an independent partnership, the register shall contain the representative’s name, the name of the independent partnership for which the representative acts, the address of the establishment to which the representative is attached, each sector or class of sectors for which the representative is authorized to act, the conditions or restrictions appearing on the representative’s certificate and the term of the certificate.

1998, c. 37, s. 234; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

235. The Authority shall keep and maintain a register of the firms, independent representatives and independent partnerships to which it grants registration.

The register shall, in the case of a firm, contain its name, the address of its head office and of each establishment it maintains in Québec, the sector or sectors for which registration is granted, and the name of each of the firm’s representatives together with each sector or class of sectors in which the representative pursues activities and the establishment to which the representative is attached.

In the case of an independent representative, the register shall contain the representative’s name, the address of the representative’s establishment, and the sectors and classes of sectors for which the representative is registered.

In the case of an independent partnership, the register shall contain the partnership’s name, the address of all the partnership’s establishments, and the names of all the partners of and representatives employed by the partnership, together with the sectors or classes of sectors in which they pursue activities and the establishments to which they are attached.

1998, c. 37, s. 235; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

236. The registers shall, in addition, contain any other information relating to representatives, firms and independent representatives and independent partnerships that the Authority considers relevant.

1998, c. 37, s. 236; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

237. (Repealed).

1998, c. 37, s. 237; 2002, c. 45, s. 417.

238. Representatives, firms and independent representatives and independent partnerships shall inform the Authority, in the manner prescribed by regulation, of any change affecting the information contained in the register in their regard.

1998, c. 37, s. 238; O.C. 495-2004, s. 5; 2004, c. 37, s. 90.

239. The Authority shall keep the registers available for public consultation, except the register referred to in section 240. Any person may obtain copies on payment of the fees prescribed by regulation.

1998, c. 37, s. 239; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

240. The Authority may, with the authorization of the Government, keep a register of individual life insurance policies.

The register shall contain the name and address of each insured, the name and address of the insurer that issued the policy, and any other information determined by government regulation.

1998, c. 37, s. 240; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

241. Every insurer in insurance of persons must, within the time and in the manner determined by regulation of the Authority, send the Authority the information it requires for the purposes of the register of individual life insurance policies.

The insurer must thereafter, in the same manner, send the Authority the information relating to newly-issued policies and cancelled policies.

1998, c. 37, s. 241; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

242. At the request of the Authority, an insurer in insurance of persons must verify whether a person whose particulars are forwarded to the insurer by the Authority is covered by an individual life insurance policy or a group insurance policy issued by the insurer.

The insurer shall send any relevant information to the Authority within the time determined by the Authority.

1998, c. 37, s. 242; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

243. Only the following persons may obtain information from the Authority concerning the existence of an insurance policy: an heir or successor of a deceased person, the beneficiary of a life insurance policy, a person having parental authority over such an heir, successor or beneficiary, and the liquidator of the succession.

Upon proof of a person’s death, the Authority shall give such a person the information contained in the register concerning the deceased person or the information obtained by the Authority from an insurer pursuant to section 242, on payment of the fees prescribed.

1998, c. 37, s. 243; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

244. The Authority must, at the request of the Minister, forward any document or information the Minister requires concerning the Authority’s activities relating to the administration of this Act.

1998, c. 37, s. 244; 2002, c. 45, s. 419; 2004, c. 37, s. 90.

245. (Repealed).

1998, c. 37, s. 245; 2002, c. 45, s. 420.

246. (Repealed).

1998, c. 37, s. 246; 2002, c. 45, s. 420.

CHAPTER IV FINANCIAL PROVISIONS

247. (Repealed).

1998, c. 37, s. 247; 2002, c. 45, s. 420.

248. Subject to the contributions payable to an insurance fund or to the Fonds d’indemnisation des services financiers, the amounts payable to the Authority under this Act shall be part of its revenues. Such revenues shall be applied to the payment of its expenses incurred for the purposes of the administration of this Act.

1998, c. 37, s. 248; 2002, c. 45, s. 421; 2004, c. 37, s. 90.

249. The expenditure incurred by the Government for the application of this Act, as determined by the Government each year, shall be charged to the Authority.

1998, c. 37, s. 249; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

250. (Repealed).

1998, c. 37, s. 250; 2002, c. 45, s. 422.

251. (Repealed).

1998, c. 37, s. 251; 2002, c. 45, s. 422.

252. (Repealed).

1998, c. 37, s. 252; 2002, c. 45, s. 422.

253. (Repealed).

1998, c. 37, s. 253; 2002, c. 45, s. 422.

254. (Repealed).

1998, c. 37, s. 254; 2002, c. 45, s. 422.

255. (Repealed).

1998, c. 37, s. 255; 2002, c. 45, s. 422.

256. The Authority must, no later than 31 July of each year, file with the Minister a report on its activities relating to the administration of this Act for the preceding fiscal year.

The report must contain all the information required by the Minister.

The report shall mention the Authority’s findings regarding the manner in which firms, independent representatives, independent partnerships and the holders of restricted-practice certificates protect the personal information they hold on their clients.

1998, c. 37, s. 256; 2002, c. 45, s. 423; 2004, c. 37, s. 90.

257. The Minister shall lay the annual report before the National Assembly within 30 days of receiving it or, if the Assembly is not sitting, within 30 days of resumption.

1998, c. 37, s. 257.

TITLE IV FINANCIAL SERVICES COMPENSATION FUND

258. A financial services compensation fund is hereby established under the name “Fonds d’indemnisation des services financiers”.

The fund shall be assigned to the payment of indemnities payable to victims of fraud, fraudulent tactics or embezzlement for which a firm, an independent representative or an independent partnership is responsible.

1998, c. 37, s. 258; 2002, c. 45, s. 424.

258.1. The Fonds d’indemnisation des services financiers shall be constituted of dues paid by firms, independent representatives or independent partnerships pursuant to section 278 as well as of amounts recovered under section 277.

2002, c. 45, s. 425.

259. (Repealed).

1998, c. 37, s. 259; 2002, c. 45, s. 426.

260. (Repealed).

1998, c. 37, s. 260; 2002, c. 45, s. 426.

261. (Repealed).

1998, c. 37, s. 261; 2002, c. 45, s. 426.

262. (Repealed).

1998, c. 37, s. 262; 2002, c. 45, s. 426.

263. (Repealed).

1998, c. 37, s. 263; 2002, c. 45, s. 426.

264. (Repealed).

1998, c. 37, s. 264; 2002, c. 45, s. 426.

265. (Repealed).

1998, c. 37, s. 265; 2002, c. 45, s. 426.

266. (Repealed).

1998, c. 37, s. 266; 2002, c. 45, s. 426.

267. (Repealed).

1998, c. 37, s. 267; 2002, c. 45, s. 426.

268. (Repealed).

1998, c. 37, s. 268; 2002, c. 45, s. 426.

269. (Repealed).

1998, c. 37, s. 269; 2002, c. 45, s. 426.

270. (Repealed).

1998, c. 37, s. 270; 2002, c. 45, s. 426.

271. (Repealed).

1998, c. 37, s. 271; 2002, c. 45, s. 426.

272. (Repealed).

1998, c. 37, s. 272; 2002, c. 45, s. 426.

273. (Repealed).

1998, c. 37, s. 273; 2002, c. 45, s. 426.

274. The amounts constituting the Fonds d’indemnisation des services financiers are managed by the Authority. The Authority shall keep separate books in respect of such amounts and the costs incurred for the administration and operation of the fund pursuant to this Title shall be defrayed out of the amounts constituting the fund.

The assets of the fund are not part of the assets of the Authority and may not be used for the execution of the Authority’s obligations.

1998, c. 37, s. 274; 2002, c. 45, s. 427; 2004, c. 37, s. 90.

274.1. The Authority, in accordance with the rules determined by regulation, shall rule on the admissibility of claims submitted to it and shall decide the amount of the indemnities to be paid.

2002, c. 45, s. 427; 2004, c. 37, s. 90.

Not in force

274.2. (Not in force).

2008, c. 7, s. 82.

Not in force

274.3. (Not in force).

2008, c. 7, s. 82.

Not in force

274.4. (Not in force).

2008, c. 7, s. 82.

Not in force

274.5. (Not in force).

2008, c. 7, s. 82.

Not in force

274.6. (Not in force).

2008, c. 7, s. 82.

275. (Repealed).

1998, c. 37, s. 275; 2002, c. 45, s. 428.

276. The Authority may determine eligibility of a claim whether or not the perpetrator of the offence has been prosecuted or convicted.

1998, c. 37, s. 276; 2002, c. 45, s. 429; 2004, c. 37, s. 90.

277. The Authority is subrogated in all the rights of a victim it compensates, up to the amount of compensation paid. The amounts so recovered shall be paid into the fund.

1998, c. 37, s. 277; 2002, c. 45, s. 430; 2004, c. 37, s. 90.

278. The Authority shall determine, by regulation, the amount of the contribution to be paid by each firm, independent representative and independent partnership.

The Authority shall determine the contribution on the basis of the risk presented by each sector or class of sectors and any other criteria it considers relevant.

In the event of insufficient assets, the contribution must be determined so as to make up the insufficiency over a maximum period of five years.

1998, c. 37, s. 278; 2002, c. 45, s. 431; 2004, c. 37, s. 63.

279. The investments of the amounts constituting the fund must be made in accordance with the rules of the Civil Code concerning investments presumed sound, unless they are made in the form of deposits with the Caisse de dépôt et placement du Québec, to be administered by the Caisse according to the investment policy determined by the Authority.

1998, c. 37, s. 279; 2002, c. 45, s. 432; 2004, c. 37, s. 64.

280. (Repealed).

1998, c. 37, s. 280; 2002, c. 45, s. 433.

281. (Repealed).

1998, c. 37, s. 281; 2002, c. 45, s. 433.

282. (Repealed).

1998, c. 37, s. 282; 2002, c. 45, s. 433.

283. (Repealed).

1998, c. 37, s. 283; 2002, c. 45, s. 433.

TITLE V CHAMBRE DE LA SÉCURITÉ FINANCIÈRE AND CHAMBRE DE L’ASSURANCE DE DOMMAGES

CHAPTER I ESTABLISHMENT AND ORGANIZATION

284. Two Chambers are hereby established under the names “Chambre de la sécurité financière” and “Chambre de l’assurance de dommages”.

1998, c. 37, s. 284.

285. Each Chamber is a legal person.

1998, c. 37, s. 285.

286. The Chambers and the Authority are subject to the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1).

1998, c. 37, s. 286; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

287. Each Chamber shall have its head office in Québec at the place it determines. Notice of the location of the head office, and of any change in its location, shall be published in the Gazette officielle du Québec.

1998, c. 37, s. 287.

288. The affairs of the Chambre de l’assurance de dommages shall be administered by a board consisting of 13 members, two of whom shall be appointed by the Minister to represent the general public for a term of three years.

The affairs of the Chambre de la sécurité financière shall be administered by a board consisting of 11 members, two of whom shall be appointed by the Minister to represent the general public for a term of three years.

1998, c. 37, s. 288; 2004, c. 37, s. 65.

289. The board members of the Chambre de la sécurité financière, except those appointed by the Minister, shall be elected by all representatives in insurance of persons, group insurance representatives, securities representatives and financial planners.

Three members of the board shall be elected by representatives in insurance of persons, one member by group insurance representatives, three members by group savings plan representatives, one member by investment contract representatives and scholarship plan representatives, and one member by financial planners, from among their number.

1998, c. 37, s. 289.

290. The members of the board of the Chambre de l’assurance de dommages, except those appointed by the Minister, shall be elected by damage insurance agents, damage insurance brokers and claims adjusters.

Eleven members shall be elected to the board by the damage insurance agents, damage insurance brokers and claims adjusters in the employ of an insurer and the claims adjusters not in the employ of an insurer, in proportion to the number of representatives in each group and in accordance with the procedure determined by the internal management by-law of the Chamber.

1998, c. 37, s. 290; 2004, c. 37, s. 66.

291. The election of the members of the board of each Chamber shall be held by mail, in accordance with the internal management by-law of the Chamber.

The election may also be held by any other means of communication determined by the internal management by-law of the Chamber.

1998, c. 37, s. 291.

292. (Repealed).

1998, c. 37, s. 292; 2002, c. 45, s. 434.

293. Each member is entitled to stand as a candidate for a vacant position and to vote. However, a member may stand as a candidate for only one position.

1998, c. 37, s. 293; 2002, c. 45, s. 435.

294. Except with regard to group insurance representatives, investment contract representatives, scholarship plan representatives, financial planners, damage insurance agents and claims adjusters, elections shall be held on the basis of regions delimited by a by-law of each Chamber.

1998, c. 37, s. 294; 2002, c. 45, s. 436; 2004, c. 37, s. 67.

295. The Chamber shall send notice of the poll to all representatives. The Chamber shall also draw up the list of candidates, send it to the representatives, and compile the votes.

The Chamber shall then forward a list of the candidates declared elected to the Minister and to the Authority, which shall publish the list in its information bulletin.

1998, c. 37, s. 295; 2002, c. 45, s. 437; 2004, c. 37, s. 90.

296. The candidates elected to the Chambre de la sécurité financière shall designate, from among their number, a president, a vice-president for insurance from among the candidates elected by the representatives in insurance of persons and group insurance representatives, and a vice-president for securities from among the candidates elected by securities representatives, according to the procedure set out in the internal management by-law.

1998, c. 37, s. 296; 2002, c. 45, s. 438; 2004, c. 37, s. 68.

297. The candidates elected to the Chambre de l’assurance de dommages shall designate a president and a vice-president from among their number according to the procedure set out in the internal management by-law.

1998, c. 37, s. 297; 2002, c. 45, s. 439; 2004, c. 37, s. 69.

298. The term of office of the members of the board of a Chamber other than those appointed by the Minister is determined by the Chamber, according to the procedure set out in the internal management by-law.

Notwithstanding the expiry of their terms, the members of the board shall remain in office until they are replaced or re-elected.

1998, c. 37, s. 298; 2002, c. 45, s. 440; 2004, c. 37, s. 70.

299. The members of the board of a Chamber shall receive no remuneration. They shall, however, be entitled to an attendance allowance and to the reimbursement of expenses incurred in the performance of their duties, on the conditions and to the extent determined by the internal management by-law of the Chamber.

1998, c. 37, s. 299.

300. Every vacancy, except a vacancy occurring among the positions held by members appointed by the Minister, shall be filled for the unexpired portion of the term of the member to be replaced.

If the unexpired portion of the term is one year or more, the position shall be filled by way of a by-election among the representatives of the sector concerned and, where required, the region concerned. If the unexpired portion of the term is less than one year, the board shall select the replacement from among the representatives concerned.

1998, c. 37, s. 300; 2002, c. 45, s. 441; 2004, c. 37, s. 71.

301. Where the member to be replaced was a president or vice-president of a Chamber, the members of the board shall designate from their number a member to hold that office, after the replacement member has been elected or appointed.

1998, c. 37, s. 301; 2004, c. 37, s. 72.

302. A vacancy occurs, in particular, when a member fails to attend the number of meetings determined by the internal management by-law of the Chamber, in the cases and circumstances indicated in the by-law.

1998, c. 37, s. 302.

303. The president shall chair the meetings of the board and see to the proper functioning of the board, in accordance with the internal management by-law. The president shall also exercise the other responsibilities and powers assigned by the board.

When the president is absent or unable to act, the vice-president of the Chambre de l’assurance de dommages or, in the case of the Chambre de la sécurité financière, the vice-president designated by the internal management by-law, shall perform the duties of president.

1998, c. 37, s. 303; 2004, c. 37, s. 73.

303.1. The board shall appoint a chief executive officer in the case of the Chambre de la sécurité financière, and a president and director general in the case of the Chambre de l’assurance de dommages.

The chief executive officer and the president and director general are responsible for the administration and management of their respective Chambers within the framework of the internal management by-law adopted by their respective Chambers.

Their remuneration and other conditions of office are determined by a contract binding them to their Chamber. They may also exercise other responsibilities and powers determined by the board.

2004, c. 37, s. 74.

304. A Chamber may hold its meetings at any place in Québec.

1998, c. 37, s. 304.

305. The quorum at board meetings of a Chamber is the majority of its members.

1998, c. 37, s. 305; 2004, c. 37, s. 75.

306. A decision by a Chamber is made on a majority vote of the members present.

Where there is a tie-vote, the member chairing the meeting shall have the casting vote.

The members may take part in a meeting using any means of communication that allows all the participants to communicate orally, such as the telephone.

1998, c. 37, s. 306.

307. Where both the president and the vice-president are absent or unable to act, the members present at a meeting shall designate one of their number to chair the meeting.

1998, c. 37, s. 307.

308. A decision signed by all the members of the board has the same value as a decision made at a meeting of the board.

1998, c. 37, s. 308.

309. The board of each Chamber shall appoint a secretary.

Any other personnel member a Chamber needs to pursue its activities shall be appointed by the chief executive officer in the case of the Chambre de la sécurité financière, and by the president and director general in the case of the Chambre de l’assurance de dommages, in accordance with the staffing plan and the standards established by regulation of the Chamber. The regulation shall also determine the standards and scales of remuneration, employment benefits and other employment conditions of the personnel members.

Section 217 does not apply to a regulation made under this section.

1998, c. 37, s. 309; 2004, c. 37, s. 76.

310. Each Chamber shall determine, by regulation, the rules of ethics and the sanctions applicable to its board members and personnel.

Section 217 does not apply to a regulation made under this section.

1998, c. 37, s. 310; 2004, c. 37, s. 77.

310.1. Section 217 does not apply to the internal management by-law of a Chamber.

2004, c. 37, s. 78.

311. On the written requisition of three members of the board, the secretary of a Chamber shall convene a special meeting.

1998, c. 37, s. 311.

CHAPTER II FUNCTIONS AND POWERS

312. The mission of a Chamber shall be to ensure the protection of the public by maintaining discipline among and supervising the training and ethics of its members.

Chambers shall exercise the functions and powers provided for in this chapter, Chapter III of this Title and Chapters I and II of Title VI of this Act as recognized self-regulatory organizations to which the provisions of Title III of the Act respecting the Autorité des marchés financiers (chapter A–33.2) apply, with the necessary modifications.

In addition, they shall exercise any other function or power delegated to them by the Authority under section 61 of that Act.

They shall also exercise, in respect of their members, the regulatory power provided for in section 202.1.

The representatives referred to in the first paragraph of section 289 are members of the Chambre de la sécurité financière and the representatives referred to in the first paragraph of section 290 are members of the Chambre de l’assurance de dommages.

1998, c. 37, s. 312; 2002, c. 45, s. 442; O.C. 1366-2003, s. 6; 2004, c. 37, s. 90.

313. Each Chamber shall determine, by regulation,

(1)  (subparagraph repealed);

(2)  (subparagraph repealed);

(3)  the criteria, including the equivalency criteria, governing the granting or withdrawal of the titles mentioned in sections 317 and 318.

Section 217 does not apply to a regulation made under the first paragraph.

1998, c. 37, s. 313; 2002, c. 45, s. 443.

314. A Chamber shall give its opinion on any matter submitted to it by the Authority. It may make recommendations to the Authority on any matter within the jurisdiction of the Authority.

To that end, a Chamber may establish committees composed of the persons it designates to collect all relevant information and report their findings to the Chamber together with their recommendations.

1998, c. 37, s. 314; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

315. A Chamber may offer services to its members, such as professional development sessions for sectors other than the financial planning sector, and advisory services in quality control and compliance with professional requirements.

The Chamber shall determine, by regulation, the fees payable for such services.

Section 217 does not apply to a regulation made under the second paragraph.

1998, c. 37, s. 315; 2002, c. 45, s. 444.

316. A Chamber may enter into an agreement concerning the provision of compulsory upgrading and professional development sessions by any person.

1998, c. 37, s. 316.

317. The Chambre de la sécurité financière has exclusive jurisdiction to authorize a representative in insurance of persons or a group insurance representative to use the title of “chartered life underwriter” and the abbreviation “(C.L.U.)” or the title of “registered life underwriter” and the abbreviation “(R.L.U.)”.

No person may use such a title or abbreviation unless the person holds an authorization from the Chamber and is authorized by the Authority to act as a representative in insurance of persons or a group insurance representative.

The Chamber may take all appropriate steps to prevent the unlawful use of such a title or abbreviation.

1998, c. 37, s. 317; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

318. The Chambre de l’assurance de dommages has exclusive jurisdiction to authorize a damage insurance broker to use the title of “chartered insurance broker” and the abbreviation “(C.I.B.)” or the title of “associate insurance broker” and the abbreviation “(A.I.B.)”.

No person may use such a title or abbreviation unless the person holds an authorization from the Chamber and is authorized by the Authority to act as a damage insurance broker.

The Chamber may take all appropriate steps to prevent the unlawful use of such a title or abbreviation.

1998, c. 37, s. 318; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

319. The Chambre de la sécurité financière shall make recommendations to the Authority concerning the rules of ethics applicable to each securities sector and class of sectors.

1998, c. 37, s. 319; 2002, c. 45, s. 500; 2004, c. 37, s. 90.

320. A Chamber shall, by regulation, determine the amount of the annual contribution its members must pay to it and the date before which such contribution must be paid.

The regulation shall be submitted to the members for approval.

Section 217 does not apply to a regulation made under the first paragraph.

1998, c. 37, s. 320; 2002, c. 45, s. 445.

320.1. Each member must, within the time prescribed, pay the contribution determined pursuant to section 320 to the Chamber.

2002, c. 45, s. 445.

320.2. The Chamber must notify the Authority if a member fails to pay the annual contribution.

2002, c. 45, s. 445; 2004, c. 37, s. 90.

320.3. The Authority shall serve on a member who fails to pay the annual contribution to a Chamber a 15-day notice of the date on which the representative’s certificate of the member will be suspended for failure to pay the annual contribution within the time prescribed.

Upon the expiry of the time prescribed, the Authority shall suspend the representative’s certificate of the member having failed to pay the amount of the annual contribution and the applicable fees. The Authority shall then indicate in the register that the certificate has been suspended and notify the member, the Chamber and, where applicable, the firm or independent partnership for which the member is acting, that the member may no longer act as or purport to be a representative.

2002, c. 45, s. 445; 2004, c. 37, s. 90.

320.4. A member whose representative’s certificate has been suspended for failure to pay the annual contribution may request that the Authority lift the suspension of the certificate after paying directly to the Authority the amount of the contribution together with the applicable fees.

Upon payment of the contribution and applicable fees, the Authority shall lift the suspension and issue a representative’s certificate to the member, unless other grounds exist that prevent a certificate being issued to the member.

The Authority shall in such case enter in the register an indication to that effect and notify the persons referred to in the second paragraph of section 320.3. The Authority shall remit the contribution received to the Chamber and retain the fees collected.

2002, c. 45, s. 445; 2004, c. 37, s. 90.

320.5. At the request of a Chamber, the Authority shall collect the annual contributions from its members. The collection costs incurred by the Authority shall be borne by the Chamber.

2002, c. 45, s. 445; 2004, c. 37, s. 90.

321. (Repealed).

1998, c. 37, s. 321; 2002, c. 45, s. 446.

322. (Repealed).

1998, c. 37, s. 322; 2002, c. 45, s. 446.

323. The financial year of a Chamber ends on 31 December.

1998, c. 37, s. 323.

324. (Repealed).

1998, c. 37, s. 324; 2002, c. 45, s. 447.

325. (Repealed).

1998, c. 37, s. 325; 2002, c. 45, s. 448.

326. (Repealed).

1998, c. 37, s. 326; 2002, c. 45, s. 449.

CHAPTER III SYNDICS

327. The board of each Chamber shall appoint a syndic.

The Chamber shall, according to the staffing plan and standards determined by regulation of the Chamber, fix the syndic’s remuneration, employment benefits and other conditions of employment, all of which shall be borne by the Chamber.

1998, c. 37, s. 327; 2002, c. 45, s. 450; 2004, c. 37, s. 79.

328. (Repealed).

1998, c. 37, s. 328; 2002, c. 45, s. 451; 2004, c. 37, s. 80.

329. The duties of the syndics shall involve inquiring into matters on their own initiative or on receiving information to the effect that a representative has committed an offence under a provision of this Act or the regulations.

1998, c. 37, s. 329; 2002, c. 45, s. 452.

330. The duties of the syndic of the Chambre de la sécurité financière shall relate to representatives in insurance of persons, group insurance representatives, financial planners and securities representatives.

The duties of the syndic of the Chambre de l’assurance de dommages shall relate to damage insurance agents, damage insurance brokers and claims adjusters.

A syndic shall have jurisdiction to act in respect of a representative authorized to act in more than one sector if one of such sectors falls within the syndic’s jurisdiction.

1998, c. 37, s. 330; 2002, c. 45, s. 453.

331. The board of a Chamber may appoint assistants to assist in the performance of the duties of each syndic, and shall fix the remuneration, employment benefits and other conditions of employment of the assistants according to the staffing plan and standards determined by regulation of the Chamber.

The remuneration of the assistants shall be borne by the Chamber.

1998, c. 37, s. 331; 2002, c. 45, s. 454; 2004, c. 37, s. 81.

332. The assistants to a syndic shall perform their duties under the direction of the syndic.

The assistants shall have all the powers conferred on the syndic.

1998, c. 37, s. 332; 2002, c. 45, s. 455.

333. Each Chamber shall appoint the personnel required to enable the activities of the syndic to be pursued.

The personnel shall be appointed and remunerated in accordance with the standards, scales and staffing plan established by the Chamber by regulation.

1998, c. 37, s. 333; 2002, c. 45, s. 456.

334. No syndic or assistant may be prosecuted by reason of acts performed in good faith in the performance of their duties.

1998, c. 37, s. 334; 2002, c. 45, s. 457.

335. The syndics may exchange personal information with each other and with the Authority for the purpose of detecting or repressing offences under this Act or the regulations.

They may also obtain any information from the Authority concerning the Fonds d’indemnisation des services financiers.

1998, c. 37, s. 335; 2002, c. 45, s. 458; 2004, c. 37, s. 90.

336. Upon receiving a complaint, a syndic shall immediately advise the Authority of the filing and nature of the complaint. The first paragraph of section 186.1 applies to such a complaint.

The syndic shall also advise another syndic having jurisdiction in respect of the certificate holder as well as the certificate holder against whom the complaint is directed.

1998, c. 37, s. 336; 2002, c. 45, s. 459; 2004, c. 37, s. 90.

337. Insurers, firms and independent partnerships must, at the request of a syndic, forward any required document or information concerning the activities of a representative.

1998, c. 37, s. 337; 2002, c. 45, s. 460.

338. The syndics may conduct an inquiry into a firm or the establishment of an independent representative or independent partnership.

1998, c. 37, s. 338; 2002, c. 45, s. 461.

339. The person conducting the inquiry must produce identification and, on request, show evidence of authority issued by a syndic.

1998, c. 37, s. 339; 2002, c. 45, s. 462.

340. A person conducting an inquiry may

(1)  have access, at any reasonable time, to any establishment of a firm, independent representative or independent partnership;

(2)  examine and make copies of the books, registers, accounts, records and other documents of the firm, independent representative or independent partnership;

(3)  require any document relating to their activities.

Every person having custody, possession or control of such books, registers, accounts, records and other documents must, at the request of the person conducting the inquiry, produce them and allow them to be examined.

1998, c. 37, s. 340.

341. A person conducting an inquiry may verify access rights for any computer system to ensure that only authorized representatives have access to information.

1998, c. 37, s. 341.

342. No person may hinder the work of a person conducting an inquiry, in particular by misleading that person.

1998, c. 37, s. 342.

343. The documents, books, registers, accounts and records that a syndic or the person conducting the inquiry may require must be produced whatever their storage medium and whatever the means by which they may be accessed.

1998, c. 37, s. 343; 2002, c. 45, s. 463.

344. Where a syndic has reasonable grounds to believe that an offence has been committed, a complaint shall be filed before the discipline committee against the representative concerned.

A complaint may also be filed by the Authority.

1998, c. 37, s. 344; 2002, c. 45, s. 464; 2004, c. 37, s. 90.

345. A person who requests the holding of an inquiry shall be informed, in writing, by the syndic if a complaint is filed.

1998, c. 37, s. 345; 2002, c. 45, s. 465.

346. A complaint may be filed against a person who is not the holder of a certificate issued by the Authority if, at the time of the alleged offence, the person was the holder of such a certificate.

1998, c. 37, s. 346; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

347. A person who requested that an inquiry be held shall be informed, in writing, by the syndic of any decision not to file a complaint, of the reasons for the decision and of the possibility of seeking the opinion of the Authority’s review committee.

In such a case, the complaint may be filed by the person.

1998, c. 37, s. 347; 2002, c. 45, s. 466; 2004, c. 37, s. 90.

348. The syndics may, out of the sums granted for that purpose, retain the services of an expert.

1998, c. 37, s. 348; 2002, c. 45, s. 467.

349. Where a syndic files a complaint with the discipline committee, the syndic shall conduct the proceedings.

1998, c. 37, s. 349; 2002, c. 45, s. 467.

350. The syndic shall communicate the decision of the discipline committee to the person who requested the holding of the inquiry.

1998, c. 37, s. 350; 2002, c. 45, s. 467.

351. The syndics shall report on their activities to the Chambers and to the Authority in the manner determined by the Authority.

1998, c. 37, s. 351; 2002, c. 45, s. 468; 2004, c. 37, s. 90.

TITLE V.1 REVIEW COMMITTEE

2002, c. 45, s. 469.

351.1. A review committee is hereby established within the Authority.

The purpose of the committee is to give any person who so requests an opinion concerning the decision of the syndic or syndic’s assistant of one of the Chambers not to file a complaint following an inquiry held at the person’s request.

The committee shall be made up of the members appointed by the Authority, whose number it shall determine.

At least two of the persons appointed shall be chosen from among the persons whose names appear on a list that the Authority may draw up for such purpose. The persons appointed in accordance with this paragraph shall be entitled, to the extent and subject to the conditions determined by the Government, to an attendance allowance and to the reimbursement of reasonable expenses incurred in the performance of their functions. The allowance and reimbursement shall be borne by the Authority.

The committee shall sit with three persons, at least one of whom shall be a member chosen in accordance with the fourth paragraph.

If the number of persons appointed so permits, the committee may sit in divisions of three persons, at least one of whom shall be a member chosen in accordance with the fourth paragraph.

2002, c. 45, s. 469; 2004, c. 37, s. 90.

351.2. The person who requested the syndic to hold an inquiry may, within 30 days following the date of receipt of the decision of the syndic or syndic’s assistant not to file a complaint before the discipline committee, request the opinion of the review committee.

Within 90 days following the date of receipt of a request for an opinion referred to in the first paragraph, the review committee shall render its decision in writing after examining the entire record and the evidence, which the syndic or syndic’s assistant shall transmit to the committee, and after hearing the syndic or syndic’s assistant as well as the person who requested the inquiry.

2002, c. 45, s. 469.

351.3. In its opinion, the review committee may

(1)  conclude that there is no reason to file a complaint before the discipline committee;

(2)  ask the syndic or syndic’s assistant to complete the inquiry; or

(3)  conclude that there is reason to file a complaint before the discipline committee and suggest the name of a person who, acting in the capacity of a syndic, may file a complaint.

2002, c. 45, s. 469.

TITLE VI DISCIPLINE COMMITTEES

CHAPTER I ESTABLISHMENT

352. A discipline committee is hereby established within each Chamber.

1998, c. 37, s. 352.

353. A complaint made against a representative for an offence under the provisions of this Act or the regulations shall be brought before the discipline committee concerned.

1998, c. 37, s. 353.

354. The discipline committee of the Chambre de la sécurité financière shall decide all complaints filed against representatives in insurance of persons, group insurance representatives, securities representatives and financial planners.

The discipline committee of the Chambre de l’assurance de dommages shall decide all complaints filed against damage insurance agents, damage insurance brokers and claims adjusters.

1998, c. 37, s. 354.

355. Each discipline committee shall be composed of advocates and representatives.

1998, c. 37, s. 355.

356. The business of each discipline committee shall be directed by a president appointed by the Minister, after consulting the Barreau, from among advocates having at least ten years of practice.

The Minister shall fix the remuneration, employment benefits and other conditions of employment of the president, which shall be borne by the Chamber.

1998, c. 37, s. 356.

357. The Minister shall, after consulting the Barreau, appoint the vice-president from among the advocates having at least ten years of practice. The vice-president shall exercise the duties of the president when the latter is absent or unable to act.

1998, c. 37, s. 357.

358. The president of each discipline committee shall, after consulting the Barreau, appoint the members, with the exception of the vice-president, who are to be chosen from among the advocates having at least ten years of practice.

The president shall prepare a list of the members and file the list with the Chamber.

1998, c. 37, s. 358.

359. Each Chamber shall appoint a sufficient number of members to the discipline committee for each sector in which its members pursue activities and according to three marketing sectors, chosen from among the members who are representatives.

1998, c. 37, s. 359; 2002, c. 45, s. 470.

360. The first marketing sector is formed by the representatives who pursue activities for a firm that is a deposit institution.

1998, c. 37, s. 360.

361. The second marketing sector is formed by the representatives who pursue activities for a firm that is a financial institution or a person related to a financial institution, other than a deposit institution, that is part of the same financial group or that operates a franchise authorized by such a financial group.

The expressions “financial institution”, “related person” and “financial group” have the meaning assigned in section 147, with the necessary modifications.

1998, c. 37, s. 361.

362. The third marketing sector is formed by the remaining representatives.

1998, c. 37, s. 362.

363. Each Chamber shall forward the list of the members appointed for each marketing sector to the president of the discipline committee.

1998, c. 37, s. 363.

364. Each Chamber shall fix, by regulation, the salary and fees or other remuneration of the members of the discipline committee other than the president. The regulation shall prescribe the remuneration to be received by the vice-president when the latter replaces the president.

The regulation shall be submitted to the Government for approval with or without amendment.

1998, c. 37, s. 364.

365. The term of the president shall not exceed five years and the term of the other members shall not exceed three years.

At the expiry of their them, the members of the discipline committee shall continue to serve on the committee until reappointed or replaced.

1998, c. 37, s. 365.

366. Each Chamber shall appoint a secretary to its discipline committee. It shall also appoint another person to replace the secretary when the latter is absent or unable to act.

The Chamber shall also appoint the personnel required to ensure the proper functioning of the discipline committee.

1998, c. 37, s. 366.

366.1. Section 124 of the Professional Code (chapter C-26) applies to members and secretaries of the discipline committees and to syndics, syndics’ assistants and members of their personnel and to members of the review committee, with the necessary modifications.

2002, c. 45, s. 471.

367. The secretary shall, in particular, prepare and keep the records of the committee.

The secretary shall also keep a roll of hearings which shall be made available for public consultation, and which the secretary shall post at least ten days before the date on which a hearing is to be held.

1998, c. 37, s. 367.

368. A complaint made against a representative shall be served on the representative by the secretary, in the manner provided for in the Code of Civil Procedure (chapter C‐25), at the establishment to which the representative is attached according to the register of the Authority.

1998, c. 37, s. 368; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

369. The secretary shall forward each executory decision of the discipline committee to the Authority and to the Chamber concerned.

1998, c. 37, s. 369; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

370. Each discipline committee shall forward an annual report on its activities to the Authority and to the Chamber concerned, on the date and in the form determined by the Chamber.

1998, c. 37, s. 370; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

CHAPTER II HEARINGS

371. A complaint shall be heard by three members of the discipline committee designated by the president, including an advocate who shall chair the hearing.

However, if a member of a discipline committee other than the chair becomes unable to act, the hearing may be validly continued and a valid decision made by the two remaining members.

1998, c. 37, s. 371.

372. Where the president considers that, in a given sector, the number of members entered on the list for a marketing sector does not allow the members to be selected in a way that ensures impartiality, the president may correct the situation by designating any other member of the discipline committee to hear the complaint.

1998, c. 37, s. 372.

373. A member of the discipline committee who is in a situation of conflict of interest must, on pain of forfeiture of office, disclose the situation to the president; that member may not hear a complaint.

Articles 838 to 840 of the Code of Civil Procedure (chapter C‐25), adapted as required, apply to a motion for termination of a term of office. The judgment of the court is executory and final and may not be appealed.

1998, c. 37, s. 373.

374. A member of the discipline committee who has begun the hearing of a complaint but whose term as a member of the discipline committee has not been renewed may validly continue to hear the complaint and take part in the decision.

1998, c. 37, s. 374.

375. The members of the discipline committee may not be prosecuted by reason of acts performed in good faith in the performance of their duties.

1998, c. 37, s. 375.

376. The provisions of the Professional Code (chapter C‐26) relating to the filing and hearing of a complaint, and to the decisions and penalties arising from the complaint, adapted as required, apply to the complaints received by the discipline committee.

1998, c. 37, s. 376.

377. The president, or a member of the discipline committee designated by the president who is an advocate, acting alone, may hear and decide any preliminary exception.

1998, c. 37, s. 377.

378. In no case may the committee, in the event of non-compliance with any of sections 18, 19, 29, 35 and 36, impose a reprimand or a fine of less than $2,000.

1998, c. 37, s. 378.

CHAPTER III APPEALS

379. A decision made by the discipline committee may be appealed to the Court of Québec.

Sections 326 to 328 and 330 of the Securities Act (chapter V‐1.1), adapted as required, apply to the appeal.

1998, c. 37, s. 379; 2002, c. 45, s. 472.

380. (Repealed).

1998, c. 37, s. 380; 2002, c. 45, s. 473.

381. The appeal shall not suspend the contested decision, unless a judge of the Court of Québec decides otherwise.

1998, c. 37, s. 381; 2002, c. 45, s. 474.

382. An appeal under section 379 is brought within 30 days of the date of service of the decision by filing a notice with the secretary of the discipline committee.

1998, c. 37, s. 382; 2002, c. 45, s. 475.

383. The secretary of the discipline committee shall forward the record to the Court of Québec without delay.

1998, c. 37, s. 383; 2002, c. 45, s. 476.

384. (Repealed).

1998, c. 37, s. 384; 2002, c. 45, s. 477.

TITLE VII SUPERVISION

CHAPTER I

Repealed, 2002, c. 45, s. 478.

2002, c. 45, s. 478.

385. (Repealed).

1998, c. 37, s. 385; 2002, c. 45, s. 478.

386. (Repealed).

1998, c. 37, s. 386; 2002, c. 45, s. 478.

387. (Repealed).

1998, c. 37, s. 387; 2002, c. 45, s. 478.

388. (Repealed).

1998, c. 37, s. 388; 2002, c. 45, s. 478.

389. (Repealed).

1998, c. 37, s. 389; 2002, c. 45, s. 478.

390. (Repealed).

1998, c. 37, s. 390; 2002, c. 45, s. 478.

391. (Repealed).

1998, c. 37, s. 391; 2002, c. 45, s. 478.

392. (Repealed).

1998, c. 37, s. 392; 2002, c. 45, s. 478.

393. (Repealed).

1998, c. 37, s. 393; 2002, c. 45, s. 478.

394. (Repealed).

1998, c. 37, s. 394; 2002, c. 45, s. 478.

CHAPTER II

Repealed, 2002, c. 45, s. 478.

2002, c. 45, s. 478.

395. (Repealed).

1998, c. 37, s. 395; 2002, c. 45, s. 478.

396. (Repealed).

1998, c. 37, s. 396; 2002, c. 45, s. 478.

397. (Repealed).

1998, c. 37, s. 397; 2002, c. 45, s. 478.

398. (Repealed).

1998, c. 37, s. 398; 2002, c. 45, s. 478.

399. (Repealed).

1998, c. 37, s. 399; 2002, c. 45, s. 478.

400. (Repealed).

1998, c. 37, s. 400; 2002, c. 45, s. 478.

401. (Repealed).

1998, c. 37, s. 401; 2002, c. 45, s. 478.

402. (Repealed).

1998, c. 37, s. 402; 2002, c. 45, s. 478.

CHAPTER III INQUIRIES

403. The Minister may order that an inquiry be held into any question relating to the carrying out of this Act.

The Minister shall appoint the person responsible for conducting the inquiry.

1998, c. 37, s. 403.

404. The person responsible for conducting the inquiry may summon any person to appear and order that person to testify on oath and produce any required document.

1998, c. 37, s. 404.

405. The testimony of a person heard as a witness may not be used against the person in a proceeding, except in the case of perjury, the giving of contradictory evidence or contempt of court.

1998, c. 37, s. 405.

406. Any failure to comply with the provisions of section 404 may be referred to by way of motion to the Superior Court, which shall rule on the matter in accordance with articles 49 to 54 of the Code of Civil Procedure (chapter C‐25) in order to ensure compliance with this chapter.

1998, c. 37, s. 406.

407. The persons responsible for conducting an inquiry may not be prosecuted by reason of acts performed in good faith in the performance of their duties.

1998, c. 37, s. 407.

TITLE VIII DISTRIBUTION OTHER THAN THROUGH A REPRESENTATIVE

CHAPTER I INSURERS

408. An insurer may, in accordance with this Title, offer insurance products through a distributor.

A distributor is a person who, in pursuing activities in a field other than insurance, offers, as an accessory, for an insurer, an insurance product which relates solely to goods sold by the person or secures a client’s adhesion in respect of such an insurance product.

1998, c. 37, s. 408.

409. An employee of an insurer whose principal duties consist in offering credit may act as a distributor and secure the adhesion of clients in respect of an insurance product referred to in paragraph 1 of section 426.

1998, c. 37, s. 409.

410. An insurer may not offer a product through a distributor without first preparing a distribution guide and providing the distributor with a copy of the guide.

1998, c. 37, s. 410.

411. The distribution guide must describe the product offered, state the nature of the guarantee and state clearly all exclusions from the guarantee.

The distribution guide shall specify the way in which eventual claims are to be presented, and the time for presenting a claim. The guide shall also indicate the lapse of time available to the insurer, in such a case, to pay the amounts insured, and the steps to be taken by the insured, within the time specified in the guide, if the insurer fails to allow the claim.

1998, c. 37, s. 411.

412. Where applicable, the distribution guide shall mention that the insurer is aware that other insurance products offering guarantees similar to those of the product offered are available on the market.

1998, c. 37, s. 412.

413. A distribution guide must be drafted and presented in accordance with the rules determined by the Authority.

1998, c. 37, s. 413; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

414. The insurer must, before furnishing a distribution guide to distributors, forward a copy of the guide to the Authority. A copy must also be forwarded following any amendment to the guide.

The distribution guide must include a copy of the policy related to the products described in the guide.

In addition, the distribution guide must include a list of the names and addresses of the distributors through whom the product described in the guide is offered by the insurer.

1998, c. 37, s. 414; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

415. The insurer shall, without delay, send a copy of an amended distribution guide to the distributors, and shall take the necessary steps to ensure that outdated guides are recovered.

1998, c. 37, s. 415.

416. The Authority may, as often as it considers it necessary, order an insurer to amend a distribution guide in the manner and within the time it specifies. The insurer must send a copy of the amended guide to the Authority within that time.

The Authority may, before the expiry of the time specified, grant an extension.

1998, c. 37, s. 416; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

417. The insurer may, before the expiry of the time for making an amendment, notify the Authority of its decision to terminate the distribution of the insurance product concerned.

The insurer shall, without delay, inform its distributors of its decision and take the necessary steps to ensure that the distribution guides and the blank contract forms relating to the product are recovered.

The same applies in all cases where an insurer terminates the distribution of a product.

1998, c. 37, s. 417; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

418. The insurer must, without delay, inform the Authority of the name and address of every new distributor through whom an insurance product is offered, together with a description of the product.

The same applies where the insurer ceases to do business with a distributor.

1998, c. 37, s. 418; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

419. Where an insurer fails to comply with an order of the Authority, the Authority may order the insurer to cease distributing the product through distributors.

1998, c. 37, s. 419; 2002, c. 45, s. 479; 2004, c. 37, s. 90.

420. Depending on the complexity of the product concerned, the insurer must, in addition to preparing a distribution guide, take all other appropriate steps to ensure that its distributors are sufficiently familiar with the product.

1998, c. 37, s. 420.

421. The insurer shall maintain a consultation service to answer any inquiries from a distributor or from a client concerning the distribution guide.

1998, c. 37, s. 421.

422. The Authority shall keep the distribution guides received from insurers available for public consultation.

1998, c. 37, s. 422; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

423. The Authority shall, by regulation, fix the fees to be paid to it by an insurer for the examination of each distribution guide sent to the Authority pursuant to section 414.

1998, c. 37, s. 423; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

424. For the purposes of this Title, the following types of products are deemed to be insurance products which relate solely to goods:

(1)  travel insurance;

(2)  vehicle rental insurance, where the rental period is less than four months;

(3)  credit card and debit card insurance.

1998, c. 37, s. 424.

425. A deposit institution may distribute travel insurance products. In such a case, it is deemed to act as a distributor.

An employee of an insurer may also distribute travel insurance products. In such a case, the employee is deemed to act as a distributor.

1998, c. 37, s. 425.

426. For the purposes of this Title, the following insurance products are deemed to be insurance products which relate solely to goods and to which clients adhere:

(1)  debtor life, health and employment insurance;

(2)  investor life insurance.

1998, c. 37, s. 426.

427. The Government may order that an insurance product it specifies, except a product referred to in section 424 or 426, may not be offered by an insurer through a distributor.

1998, c. 37, s. 427.

428. The Government may also order, after consulting the Authority, that an insurance product that cannot be offered by a distributor may be offered in accordance with Chapters I and II by any person it specifies.

The persons specified in the order are deemed to be distributors for that product.

1998, c. 37, s. 428; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

CHAPTER II DISTRIBUTORS

429. A distributor must, before offering an insurance product, take all necessary steps to ensure that every person responsible for distributing the product is sufficiently familiar with the distribution guide relating to the product.

1998, c. 37, s. 429.

430. Where the distribution guide so indicates, the person responsible for distributing the product shall inform the client that other insurance products offering coverage similar to that of the product offered are available on the market.

The person distributing the product shall also ask if the client is already covered by such an insurance product and, if the client is unsure, encourage the client to look into the matter.

1998, c. 37, s. 430.

431. A person who distributes an insurance product must describe the product to the client and explain the nature of the guarantee.

The person distributing the product must clearly explain the exclusions under the guarantee to enable the client to decide whether the situation applying in the client’s case constitutes an exclusion under the guarantee.

The person distributing the product must also, if the remuneration received by the distributor for the sale of the product exceeds 30% of its sale price, disclose that remuneration to the client.

1998, c. 37, s. 431.

432. An insurer must, at the request of the Authority, disclose the remuneration it grants to distributors for the sale of a product.

1998, c. 37, s. 432; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

433. A distributor offering more than one insurance product for the same goods must disclose to the client the remuneration paid by the insurer for the sale of each insurance product.

1998, c. 37, s. 433.

434. The person distributing a product must inform the client of the procedure and time limits for making a claim. The client must also be informed of the time available to the insurer to pay the insured amounts, and of the steps to be taken within a specified time limit if the insurer fails to allow the claim.

1998, c. 37, s. 434.

435. Before selling or securing a client’s adhesion in respect of an insurance product, the person distributing the product must give the client a copy of the distribution guide.

1998, c. 37, s. 435.

436. Where a client of a distributor has not received the information required under section 431, the distributor is liable for any resulting injury to the client.

1998, c. 37, s. 436.

437. Sections 35 and 36, adapted as required, apply to a distributor who collects personal information of a medical or lifestyle-related nature from a client.

Sections 92 to 94 and 102, adapted as required, apply to distributors.

1998, c. 37, s. 437.

438. Where a distributor is notified by an insurer of the latter’s decision to terminate the distributor’s distribution of an insurance product, the distributor must return to the insurer, without delay, all distribution guides and blank contract forms relating to that product.

Where a distributor who has received such notification sells an insurance product to a client, the distributor is liable for any injury suffered by the client.

1998, c. 37, s. 438.

439. A distributor may not subordinate the making of a contract to the making of an insurance contract with the insurer specified by the distributor.

The distributor may not exercise undue pressure on the client or use fraudulent tactics to induce the client to purchase a financial product or service.

1998, c. 37, s. 439.

440. A distributor that, at the time a contract is made, causes the client to make an insurance contract must give the client a notice, drafted in the manner prescribed by regulation of the Authority, stating that the client may cancel the insurance contract within 10 days of signing it.

1998, c. 37, s. 440; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

441. A client may cancel an insurance contract made at the same time as another contract, within 10 days of signing it, by sending notice by registered or certified mail.

Where such an insurance contract is cancelled, the first contract retains all its effects.

1998, c. 37, s. 441.

442. No contract may contain provisions allowing its amendment in the event of cancellation or termination by the client of an insurance contract made at the same time.

However, a contract may provide that the cancellation or termination of the insurance contract will entail, for the remainder of the term, the loss of the favourable conditions extended because more than one contract was made at the same time.

1998, c. 37, s. 442.

443. A distributor that offers financing for the purchase of goods or services and that requires the debtor to subscribe for insurance to guarantee the reimbursement of the loan must give the debtor a notice, drawn up in the manner prescribed by regulation of the Authority, stating that the debtor may subscribe for insurance with the insurer and representative of the debtor’s choice provided that the insurance is considered satisfactory by the creditor, who may not refuse it without reasonable grounds. The distributor may not subordinate the making of the contract of credit to the making of an insurance contract with the insurer specified by the distributor.

No contract of credit may stipulate that it is made subject to the condition that the insurance contract subscribed with such an insurer remain in force until the expiry of the term, or subject to the condition that the expiry of such an insurance contract will entail forfeiture of term or the reduction of the debtor’s rights.

The rights of the debtor under the contract of credit shall not be forfeited when the debtor cancels, terminates or withdraws from the insurance contract, provided that the debtor has subscribed for insurance with another insurer that is considered satisfactory by the creditor, who may not refuse it without reasonable grounds.

1998, c. 37, s. 443; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

444. A distributor that, on granting a loan, solicits the adhesion of a client to debtor life, health or job loss insurance must provide the client with confirmation of insurance from the insurer within 30 days of the application for adhesion.

1998, c. 37, s. 444.

CHAPTER III RESTRICTED CERTIFICATES

445. The Government may, by order, provide that an insurance product that may be offered by a distributor may only be offered by a distributor holding a restricted certificate issued by the Authority for that purpose.

A copy of the order shall be forwarded to the Authority to allow it to adopt the regulation that will govern the distribution of the product.

Upon the coming into force of the regulation, the distributors concerned shall be governed only by the provisions of this chapter for the distribution of that product.

1998, c. 37, s. 445; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

446. No person may undertake to offer a benefit in the event of a loss relating to goods referred to in section 445 unless the person is a distributor holding a restricted certificate and offering only one insurance product.

1998, c. 37, s. 446.

447. The Government may, by order, provide that an insurance product that may not be offered by a distributor may be offered by any person holding a restricted certificate issued by the Authority for that purpose.

A copy of the order shall be forwarded to the Authority to allow it to adopt the regulation that will govern the distribution of the product.

1998, c. 37, s. 447; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

448. Sections 35 and 36, adapted as required, apply to the holder of a restricted certificate who collects personal information of a medical or lifestyle-related nature from a client.

Sections 92 to 94 and 102, adapted as required, apply to the holder of a restricted certificate.

Sections 18 to 22, adapted as required, apply to the holder of a restricted certificate referred to in section 447.

Sections 439 to 444, adapted as required, apply to the holder of a restricted certificate referred to in section 445.

1998, c. 37, s. 448.

449. The Authority may, by regulation, determine

(1)  the minimum qualifications required to obtain a restricted certificate and the courses that applicants for a restricted certificate must take;

(2)  the rules relating to the preparation and sitting of prescribed examinations;

(3)  the conditions and procedure applicable to the issuance and renewal of a restricted certificate;

(4)  the term of a restricted certificate;

(5)  the information and documents to be furnished by a person applying for a restricted certificate;

(6)  the fees payable for the issuance or renewal of a restricted certificate;

(7)  the nature, form and content of the records, books and registers to be kept by the holder of a restricted certificate;

(8)  the rules relating to the use, conservation and destruction of the records, books and registers to be kept by the holder of a restricted certificate.

1998, c. 37, s. 449; 2002, c. 45, s. 480; 2004, c. 37, s. 90.

450. The Authority shall issue a restricted certificate, on payment of the prescribed fees, to every person who meets the requirements prescribed by regulation.

1998, c. 37, s. 450; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

451. Where the applicant for a restricted certificate is a legal person, a natural person forming part of its personnel must be designated to meet the requirements of subparagraphs 1 and 2 of the first paragraph of section 449.

Where the Authority issues a restricted certificate to a legal person, only a person who has passed the examination may offer the insurance products offered by the holder.

1998, c. 37, s. 451; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

452. The Authority may, by regulation, prescribe the fees to be paid by every natural person who registers for an examination.

1998, c. 37, s. 452; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

453. Sections 218 and 219, adapted as required, apply to a restricted certificate.

1998, c. 37, s. 453.

454. The Authority may cancel, suspend or impose conditions or restrictions on a restricted certificate, where the holder of the restricted certificate fails to comply with the provisions of this Act or the applicable regulations.

1998, c. 37, s. 454; 2002, c. 45, s. 481; 2004, c. 37, s. 90.

455. The Authority shall serve on the holder of a restricted certificate at least 15 days in advance notice of the date on which the holder may present observations

1998, c. 37, s. 455; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

456. An appeal lies to the Court of Québec from any decision rendered by the Authority under section 454.

The second paragraph of section 119 and sections 121 to 124, adapted as required, apply to the appeal.

1998, c. 37, s. 456; 2002, c. 45, s. 482; 2004, c. 37, s. 90.

457. The Authority shall have the same powers of inspection with regard to the holder of a restricted certificate as with regard to a firm.

1998, c. 37, s. 457; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

458. The Authority shall keep a register of the distributors holding restricted certificates available for public consultation.

The register shall contain, for the holders of restricted certificates who are natural persons, their name, the address of their establishment, the insurance products they are authorized to offer, the conditions or restrictions affecting their certificate, and its period of validity.

The register shall contain, for the holders of restricted certificates that are legal persons, their name, the address of their head office and of every establishment they maintain in Québec, the insurance product they are authorized to offer, the name of each natural person qualified to distribute the product and the establishment to which that person is attached, the conditions or restrictions affecting their certificate, and its period of validity.

The register shall, in addition, contain any other information relating to the holders of restricted certificates that the Authority considers appropriate.

1998, c. 37, s. 458; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

459. The holders of restricted certificates shall inform the Authority, in the manner prescribed by regulation, of any change affecting the information contained in the register in their regard.

1998, c. 37, s. 459; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

460. The holder of a restricted certificate whose restricted certificate has not been renewed or has been cancelled must return the records, books and registers relating to the insurance policies sold under the restricted certificate to the Authority.

The Authority shall determine the manner of disposing of such records, books and registers.

A person may, with the authorization of the Authority, dispose of the records, books and registers otherwise, rather than return them to the Authority.

1998, c. 37, s. 460; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

TITLE IX PENAL PROVISIONS

461. Subject to the provisions of the second paragraph of section 12 and of Title VIII, every person that, without authorization from the Authority, acts as a representative, uses the title or abbreviated title of a representative, or purports to be a representative is guilty of an offence.

1998, c. 37, s. 461; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

462. Every person that, without being registered with the Authority, acts as a firm in a given sector, or purports to be a registered firm, is guilty of an offence.

1998, c. 37, s. 462; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

463. Every person that, without being a representative or the holder of a restricted certificate, subordinates the making of a contract to a requirement that the client make an insurance contract is guilty of an offence.

1998, c. 37, s. 463.

464. Every person that, without being a representative or the holder of a restricted certificate, exercises undue pressure on a client or uses fraudulent tactics to induce the client to purchase a financial product or service is guilty of an offence.

1998, c. 37, s. 464.

465. Every person that, without authorization, uses titles similar to the title of claims adjuster or financial planner, as determined by regulation by the Authority, or an abbreviation of such a title, is guilty of an offence.

1998, c. 37, s. 465; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

466. Every person that, without being a financial planner, an independent partnership or a firm acting through a financial planner, purports to offer financial planning services is guilty of an offence.

1998, c. 37, s. 466.

467. Every person that, not being a person referred to in section 100, receives a commission from a representative, an independent representative, an independent partnership or a firm in connection with the sale of a financial product or the provision of a financial service is guilty of an offence.

1998, c. 37, s. 467.

468. Every person that hinders the work of a person inspecting the establishment of an independent representative, independent partnership, firm or restricted certificate holder pursuant to this Act is guilty of an offence.

1998, c. 37, s. 468.

469. Every person that, without holding a restricted certificate, undertakes to offer a benefit in the event of a loss relating to a type of goods referred to in an order made under section 445 is guilty of an offence.

1998, c. 37, s. 469.

470. Every person that, without being a representative or the holder of a restricted certificate, offers an insurance product that may only be offered by a representative or the holder of a restricted certificate is guilty of an offence.

1998, c. 37, s. 470.

471. Every distributor that receives remuneration for the sale of an insurance product that exceeds 30% of the sale price of the product is guilty of an offence if the remuneration is not disclosed to the client by the distributor or by the person distributing the product.

1998, c. 37, s. 471.

472. Every distributor that offers more than one insurance product for the same goods and that fails, when offering one of those products to a client, to disclose the remuneration paid by the insurer for the sale of each product is guilty of an offence.

1998, c. 37, s. 472.

473. Every distributor that, before selling or securing a client’s adhesion in respect of an insurance product, fails to give the client a copy of the distribution guide relating to the insurance product is guilty of an offence.

1998, c. 37, s. 473.

474. Every insurer that offers a product through a distributor without having first sent the distribution guide relating to the product to the Authority is guilty of an offence.

1998, c. 37, s. 474; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

475. Every insurer that offers a product through a distributor without having first given the distribution guide or amended distribution guide relating to the product to the distributor, is guilty of an offence.

1998, c. 37, s. 475.

476. Every insurer that offers a product through a distributor without having amended the distribution guide relating to the product as required by the Authority within the required time is guilty of an offence.

1998, c. 37, s. 476; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

477. Every distributor that fails to comply with the provisions of one of sections 35, 36 and 92 to 94 is guilty of an offence.

1998, c. 37, s. 477.

478. Every distributor that causes a client to make an insurance contract upon making another contract and fails to give the client the notice provided for in section 440 or 443 is guilty of an offence.

1998, c. 37, s. 478.

479. An offence under any of sections 463, 464, 471, 472, 473, 477 and 478 that is committed by a person entrusted by a distributor with the distribution of an insurance product is deemed to have been committed by the distributor.

1998, c. 37, s. 479.

480. Every insurer that fails to comply with the provisions of section 33, 34 or 37 is guilty of an offence.

1998, c. 37, s. 480.

481. Every insurer that ceases to distribute an insurance product through a distributor and fails to take the necessary steps to ensure that the contract forms relating to that product are withdrawn is guilty of an offence.

1998, c. 37, s. 481.

482. Every insurer that helps or, by encouragement, advice or consent or by an authorization or order, induces a firm or an independent representative or independent partnership through which it offers insurance products or an executive officer, director, partner, employee or representative of such a firm or independent partnership to contravene any provision of this Act or the regulations is guilty of an offence.

The same applies to any director, executive officer, employee or mandatary of an insurer.

1998, c. 37, s. 482.

483. Every director, partner, executive officer, employee or mandatary of a legal person or partnership who helps or, by encouragement, advice or consent or by an authorization or order, induces the legal person or partnership to commit an offence under any of sections 461 to 480 is guilty of an offence.

1998, c. 37, s. 483; 2002, c. 45, s. 485.

484. (Repealed).

1998, c. 37, s. 484; 2002, c. 45, s. 486.

485. A natural person convicted of an offence under any of sections 461, 462, 465 to 473 and 484 is liable to a fine of not less than $500 and not more than $10,000 and, for every subsequent offence, to a fine of not less than $1,000 and not more than $20,000.

1998, c. 37, s. 485.

486. A natural person convicted of an offence under any of sections 463, 464, 477 and 478 is liable to a fine of not less than $2,000 and not more than $20,000 and, for every subsequent offence, to a fine of not less than $4,000 and not more than $50,000.

1998, c. 37, s. 486.

487. A legal person convicted of an offence under any of sections 461, 462, 465 to 473 and 484 is liable to a fine of not less than $1,000 and not more than $25,000 and, for every subsequent offence, to a fine of not less than $2,000 and not more than $50,000.

1998, c. 37, s. 487.

488. A legal person convicted of an offence under any of sections 463, 464, 477 and 478 is liable to a fine of not less than $4,000 and not more than $40,000 and, for every subsequent offence, to a fine of not less than $8,000 and not more than $80,000.

1998, c. 37, s. 488.

489. An insurer convicted of an offence under any of sections 474 to 476 and 481 is liable to a fine of not less than $1,000 and not more than $25,000 and, for every subsequent offence, to a fine of not less than $2,000 and not more than $50,000.

1998, c. 37, s. 489.

490. An insurer convicted of an offence under section 480 or 482 is liable to a fine of not less than $10,000 and not more than $50,000 and, for every subsequent offence, to a fine of not less than $20,000 and not more than $100,000.

1998, c. 37, s. 490.

491. A person convicted of an offence under section 483 is liable to the same penalty as that prescribed for the offence the person helped or induced to commit.

1998, c. 37, s. 491.

492. Proceedings for an offence under any of sections 461 to 483 may be instituted by the Authority.

When the Authority has taken charge of the prosecution, the fine imposed to punish the offence belongs to the Authority.

1998, c. 37, s. 492; 2002, c. 45, s. 487; 2004, c. 37, s. 90.

493. (Repealed).

1998, c. 37, s. 493; 2002, c. 45, s. 488.

494. Penal proceedings for an offence under any of sections 461 to 483 are prescribed one year after the date of the opening of the record of inquiry relating to the offence. However, no proceedings may be instituted if more than five years have elapsed since the date on which the offence was committed.

A certificate from the secretary of the Authority stating the date on which the record of inquiry was opened is conclusive proof of that fact in the absence of any evidence to the contrary.

1998, c. 37, s. 494; 2002, c. 45, s. 489; 2004, c. 37, s. 90.

TITLE IX.1 REGULATORY POWERS OF THE GOVERNMENT

2002, c. 45, s. 490.

494.1. The Government may, by regulation,

(1)  determine the policy that firms must adopt pursuant to section 103 or elements of such policy ;

(2)  determine the policy that independent representatives must adopt pursuant to section 103 or elements of such policy ;

(3)  determine the policy that independent partnerships must adopt pursuant to section 103 or elements of such policy.

2002, c. 45, s. 490.

TITLE X AMENDING PROVISIONS

495. (Amendment integrated into c. A-25, s. 93).

1998, c. 37, s. 495.

496. (Amendment integrated into c. A-30, s. 82).

1998, c. 37, s. 496.

497. (Amendment integrated into c. A-32, s. 1).

1998, c. 37, s. 497.

498. (Amendment integrated into c. A-32, s. 10).

1998, c. 37, s. 498.

499. (Amendment integrated into c. A-32, s. 57).

1998, c. 37, s. 499.

500. (Amendment integrated into c. A-32, s. 93.79).

1998, c. 37, s. 500.

501. (Amendment integrated into c. A-32, s. 93.86).

1998, c. 37, s. 501.

502. (Amendment integrated into c. A-32, s. 93.160.1).

1998, c. 37, s. 502.

503. (Amendment integrated into c. A-32, s. 93.165.1).

1998, c. 37, s. 503.

504. (Amendment integrated into c. A-32, s. 93.214).

1998, c. 37, s. 504.

505. (Amendment integrated into c. A-32, s. 93.226).

1998, c. 37, s. 505.

506. (Amendment integrated into c. A-32, s. 93.229).

1998, c. 37, s. 506.

507. (Amendment integrated into c. A-32, s. 130).

1998, c. 37, s. 507.

508. (Amendment integrated into c. A-32, s. 174.8).

1998, c. 37, s. 508.

509. (Amendment integrated into c. A-32, s. 204).

1998, c. 37, s. 509.

510. (Amendment integrated into c. A-32, s. 222, English text).

1998, c. 37, s. 510.

511. (Amendment integrated into c. A-32, s. 303).

1998, c. 37, s. 511.

512. (Amendment integrated into c. A-32, s. 304).

1998, c. 37, s. 512.

513. (Amendment integrated into c. A-32, s. 406.1).

1998, c. 37, s. 513.

514. (Omitted).

1998, c. 37, s. 514.

515. (Amendment integrated into c. A-32, s. 406.4).

1998, c. 37, s. 515.

516. (Amendment integrated into c. B-1, s. 136).

1998, c. 37, s. 516.

517. (Amendment integrated into c. C-4.1, s. 213).

1998, c. 37, s. 517.

518. (Amendment integrated into c. C-4.1, s. 367.1).

1998, c. 37, s. 518.

519. (Amendment integrated into c. C-4.1, s. 378).

1998, c. 37, s. 519.

520. (Amendment integrated into c. C-4.1, s. 451.1).

1998, c. 37, s. 520.

521. (Amendment integrated into c. C-4.1, s. 462).

1998, c. 37, s. 521.

522. (Amendment integrated into c. C-73.1, s. 20).

1998, c. 37, s. 522.

523. (Amendment integrated into c. C-73.1, s. 25).

1998, c. 37, s. 523.

524. (Amendment integrated into c. C-73.1, s. 26).

1998, c. 37, s. 524.

525. (Amendment integrated into c. C-73.1, ss. 27, 28).

1998, c. 37, s. 525.

526. (Amendment integrated into c. C-73.1, s. 74).

1998, c. 37, s. 526.

527. (Amendment integrated into c. C-73.1, s. 155).

1998, c. 37, s. 527.

528. (Amendment integrated into c. I-11.1, Schedule I).

1998, c. 37, s. 528.

529. (Amendment integrated into c. N-1.1, s. 77).

1998, c. 37, s. 529.

530. (Amendment integrated into c. P-30, s. 62).

1998, c. 37, s. 530.

531. (Amendment integrated into c. R-2.2, s. 6).

1998, c. 37, s. 531.

532. (Amendment integrated into c. S-29.01, s. 170).

1998, c. 37, s. 532.

533. (Amendment integrated into c. V-1.1, s. 148).

1998, c. 37, s. 533.

TITLE XI TRANSITIONAL PROVISIONS

534. A natural person who, on 18 July 1999, holds a certificate issued under the Act respecting market intermediaries (chapter I‐15.1) is entitled to be issued a certificate corresponding to the certificate previously held.

Moreover, a natural person who, on 18 July 1999, holds a certificate of market intermediary in insurance of persons issued under the Act respecting market intermediaries is entitled to be issued a certificate authorizing the natural person to act both as a representative in insurance of persons and as a group insurance representative.

A natural person who, on 18 July 1999, is registered as the representative of a restricted practice broker in group savings plans, investment contracts or scholarship plans in accordance with the Securities Act (chapter V‐1.1) is entitled, subject to the same conditions and restrictions, to be issued a certificate corresponding to that registration.

1998, c. 37, s. 534.

535. From 19 July 2002, every group insurance representative must, in order to obtain a certificate authorizing the pursuit of activities as a group insurance representative, possess the skills, schooling and experience determined by a regulation made by the Authority under paragraphs 1 to 4 of section 200.

1998, c. 37, s. 535; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

536. A person referred to in section 534 who, on 18 July 1999, is under a suspension, shall remain similarly suspended.

1998, c. 37, s. 536.

537. When issuing a first certificate to a natural person referred to in section 534, the Bureau shall grant a reduction in the fees payable, calculated on a monthly basis, to offset the fees previously paid by the person that apply to the period after the certificate takes effect.

1998, c. 37, s. 537.

538. A natural person referred to in paragraph 1 of section 4 of the Act respecting market intermediaries (chapter I‐15.1) who, on 18 July 1999, acts as a damage insurance agent is entitled to be issued a certificate authorizing the person to act as a damage insurance agent.

1998, c. 37, s. 538.

539. A damage insurance broker that, on 18 July 1999, pursues activities as a claims adjuster may, on making a first application for a certificate under this Act, include any document proving that the broker was authorized to pursue such activities on that date.

Notwithstanding section 534, where the Authority grants the application, the certificate shall indicate that the broker is authorized to act as a claims adjuster with regard to policies effected by the firm to which the broker is attached.

1998, c. 37, s. 539; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

540. A natural person who, on 18 July 1999, as part of that person’s principal activity, pursues activities as a claims adjuster as the employee of an insurer, and who has a Bachelor’s degree in administration with a major in insurance, a diploma of college studies in administrative techniques in the field of insurance, an attestation of college studies in damage insurance, or an attestation establishing passage of the examinations of the Associate of the Insurance Institute of Canada (AIIC) program, is entitled to be issued a certificate authorizing that person to act as a claims adjuster.

An employee of an insurer who, on 18 July 1999, has pursued activities as a claims adjuster for at least one year but who is not in possession of an attestation or diploma referred to in the first paragraph is entitled, on presenting a statement of his or her employer certifying that the employee has pursued such activities for at least one year, to be issued a certificate authorizing the employee to act as a claims adjuster.

An employee of an insurer who has pursued activities as a claims adjuster for less than one year but who is not in possession of such an attestation must, to obtain a certificate, pass the examination prepared by the Authority for that purpose.

1998, c. 37, s. 540; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

541. A natural person who, on 18 July 1999, holds a diploma in financial planning issued by the Institut québécois de planification financière is entitled to be issued a certificate authorizing the use of the title of financial planner.

1998, c. 37, s. 541.

542. A natural person who, on 18 July 1999, holds a certificate as a real estate broker or agent restricted to loans secured by immovable hypothec may, if the person is an insurance representative or securities representative, continue to pursue such activities.

1998, c. 37, s. 542.

543. A natural person who, on 20 June 1998, holds a certificate authorizing the person to pursue activities as a market intermediary under the Act respecting market intermediaries (chapter I‐15.1) and who, within two years from that date, establishes a legal person in order to act as a firm within the meaning of this Act is exempted from the payment of the fees payable for the filing of articles of constitution and for the related research report.

1998, c. 37, s. 543.

544. Notwithstanding paragraph 2 of section 223, a representative referred to in section 128 who, on 18 July 1999, held a certificate issued under the Act respecting market intermediaries (chapter I‐15.1) may register as an independent representative or be a partner in or employee of an independent partnership.

1998, c. 37, s. 544.

545. Notwithstanding section 128 and paragraph 2 of section 223, a natural person who, on 20 June 1998, holds a certificate issued under the Act respecting market intermediaries (chapter I‐15.1) authorizing that person to act as an agent in insurance of persons or a damage insurance agent may, within two years from 19 July 1999, register as an independent representative.

An insurer whose products are distributed through an independent representative referred to in the first paragraph is not required, by virtue of that fact, to register with the Authority.

1998, c. 37, s. 545; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

546. A person referred to in the first paragraph of section 545 whose registration is cancelled or withdrawn may not re-register as an independent representative.

1998, c. 37, s. 546.

547. Persons who were employed by a market intermediary in damage insurance and who were, pursuant to the By-law of the Conseil des assurances de dommages respecting market intermediaries in damage insurance and the Regulation respecting multidisciplinary firms, declared on or before 12 June 1998 on the lists forwarded to the Inspector General of Financial Institutions or the Conseil des assurances de dommages may exercise the activities they were permitted to exercise.

1998, c. 37, s. 547.

548. Notwithstanding section 224 and subject to section 97, an agreement to authorize the operation of a franchise that is in force on 20 June 1998 may continue to apply in its existing form.

1998, c. 37, s. 548.

549. A legal person that, on 18 July 1999, holds a certificate as a multidisciplinary firm issued by the Inspector General of Financial Institutions authorizing the pursuit of activities in the field of real estate brokerage may register with the Authority as a multi-sector firm in that field. For the purposes of this Act, that field is deemed, in respect of that person, to be a sector.

The legal person may, in such a case, pursue that activity through the holder of a real estate agent’s certificate or an affiliated real estate broker’s certificate issued under the Real Estate Brokerage Act (chapter C‐73.1).

For the purposes of Title II, such certificate holders are deemed to be representatives. However, the firm and its executive officers must ensure that the representatives also comply with the Real Estate Brokerage Act and the regulations under it.

1998, c. 37, s. 549; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

550. Upon the registration of a firm that, on 18 July 1999, has paid fees to act as a market intermediary or restricted practice securities broker, the Bureau shall reduce the fees payable, calculated on a monthly basis, to offset the fees previously paid by the firm that apply to the period after the registration takes effect.

1998, c. 37, s. 550.

551. The Inspector General of Financial Institutions and the Commission shall remit to the Bureau the amounts corresponding to the fee reductions granted by the Bureau in respect of previously paid fees pursuant to sections 537 and 550.

The sums required to enable the Inspector General to fulfil the requirements of the first paragraph shall be taken out of the Consolidated Revenue Fund.

1998, c. 37, s. 551.

552. The Bureau may, before 1 October 1999, issue representative’s certificates and restricted certificates, and register legal persons as firms, or register representatives or partnerships as independent representatives or independent partnerships. Such certificates, restricted certificates and registrations shall take effect on 1 October 1999.

1998, c. 37, s. 552.

553. Notwithstanding section 96, an insurance representative may not pursue brokerage activities relating to loans guaranteed by immovable hypothec on behalf of a firm unless on 20 June 1998, the representative was authorized to pursue such activities or unless the Government, by order, authorizes the pursuit of such activities.

The Government shall, before making an order under the first paragraph, give the Authority 60 days’ advance notice.

1998, c. 37, s. 553; 2002, c. 45, s. 492; 2004, c. 37, s. 90.

554. Every insurance broker that, on 30 September 1999, is authorized to use the title of “chartered insurance broker” or “associate insurance broker” may, so long as authorized by the Authority to act as a damage insurance broker, continue to use such a title.

Every market intermediary in insurance of persons that, on 30 September 1999, is authorized to use the title of “chartered life underwriter” or the title of “registered life underwriter” may, so long as authorized by the Authority to act as an insurance representative in insurance of persons, continue to use such a title.

1998, c. 37, s. 554; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

555. The property, rights and obligations of the Association des intermédiaires en assurance de personnes du Québec and the Association des courtiers d’assurances de la province de Québec are transferred, respectively, to the Chambre de la sécurité financière and the Chambre de l’assurance de dommages, and the two associations are dissolved.

1998, c. 37, s. 555.

556. The property, rights and obligations of the Conseil des assurances de personnes and the Conseil des assurances de dommages, established under section 58 of the Act respecting market intermediaries (chapter I‐15.1), are transferred to the Bureau and the two councils are dissolved.

1998, c. 37, s. 556.

557. Subject to section 562, the register of financial planners and multidisciplinary firms holding a certificate issued by the Inspector General of Financial Institutions, together with the files and other documents concerning them, in whatever the medium they are stored, shall become the register, files and documents of the Bureau.

The same applies to the register, files and other documents of the Commission relating to restricted practice brokers in group savings, investment contracts and scholarship plans, and their representatives.

1998, c. 37, s. 557.

558. The property, rights and obligations of the Fonds d’indemnisation en assurance de personnes, the Fonds d’indemnisation en assurance de dommages and the Fonds d’indemnisation des planificateurs financiers, established under section 161 of the Act respecting market intermediaries (chapter I‐15.1), are transferred to the Fonds d’indemnisation des services financiers, and the funds are dissolved.

The sums of money deriving from the funds shall be kept separate from the other assets of the Fonds d’indemnisation des services financiers and shall be allocated exclusively to the payment of claims arising from acts referred to in section 175 of the Act respecting market intermediaries that occurred between 1 September 1991 and 30 September 1999 and to the payment of the amounts required for their operation.

1998, c. 37, s. 558.

559. The Authority shall rule on the admissibility for payment of claims arising from acts occurring between 1 September 1991 and 30 September 1999 in accordance with section 175 and paragraph 2 of section 176 of the Act respecting market intermediaries (chapter I‐15.1) as those provisions read on 30 September 1999.

1998, c. 37, s. 559; 2002, c. 45, s. 493; 2004, c. 37, s. 90.

560. Should the sums of money from the Fonds d’indemnisation en assurance de personnes and the Fonds d’indemnisation en assurance de dommages prove insufficient to meet the claims made on them, the Authority shall impose a special contribution on representatives in insurance of persons or, as the case may be, on damage insurance agents, damage insurance brokers and claims adjusters.

A representative referred to in the first paragraph must, not later than 30 days after the notice of assessment is mailed, pay the special contribution.

1998, c. 37, s. 560; 2002, c. 45, s. 494; 2004, c. 37, s. 90.

561. The Government may, from 1 October 2004, authorize the Authority to integrate into the Fonds d’indemnisation des services financiers the amounts deriving from the three separate funds referred to in section 558.

1998, c. 37, s. 561; 2002, c. 45, s. 495; 2004, c. 37, s. 90.

562. The Inspector General may validly pursue the hearing of a case begun before 1 October 1999 concerning the holder of a certificate issued by the Inspector General, and render a decision.

The same applies to the Commission where it has begun to hear a case relating to an offence committed by a restricted practice broker in group savings, investment contracts or scholarship plans, or a representative of such a broker.

1998, c. 37, s. 562.

563. (Repealed).

1998, c. 37, s. 563; 2002, c. 45, s. 496.

564. The discipline committee referred to in section 352 is competent to hear and decide any complaint filed with a disciplinary committee referred to in section 148 of the Act respecting market intermediaries (chapter I‐15.1) before 30 September 1999.

1998, c. 37, s. 564.

565. The syndic may file a complaint before the discipline committee against a market intermediary who has committed an offence under the Act respecting market intermediaries (chapter I‐15.1) or a regulation thereunder. The discipline committee has jurisdiction to hear the complaint.

The same applies to the co‐syndic in connection with an offence under the Securities Act (chapter V‐1.1) or a regulation thereunder committed by the representative of a restricted practice broker in group savings, investment contracts or scholarship plans. The discipline committee has jurisdiction to hear the complaint.

1998, c. 37, s. 565.

566. The Authority has jurisdiction to cancel, suspend or impose restrictions or conditions on registration in a given sector where it considers that a firm has, before 30 September 1999, infringed a provision of the Act respecting market intermediaries (chapter I‐15.1), the Securities Act (chapter V‐1.1) or the Real Estate Brokerage Act (chapter C‐73.1) or of a regulation under those Acts.

Sections 117, 119, 121, 122, 124, 126 and 127 apply to such a case heard by the Authority.

1998, c. 37, s. 566; 2002, c. 45, s. 497; 2004, c. 37, s. 90.

567. The Authority has jurisdiction to institute or continue proceedings relating to a penal offence under Chapter X of the Act respecting market intermediaries (chapter I‐15.1).

1998, c. 37, s. 567; 2002, c. 45, s. 499; 2004, c. 37, s. 90.

568. The members of the first boards of directors of the Chambre de la sécurité financière and the Chambre de l’assurance de dommages shall be appointed by the Minister. They shall be appointed for a term of two and a half years.

The Minister shall designate, from among the members the Minister appoints to the board of directors of the Chambre de la sécurité financière, the members who are to fill the positions of president, of vice-president, insurance, and of vice-president, securities.

The Minister shall also designate, from among the members the Minister appoints to the board of the Chambre de l’assurance de dommages, the members who are to fill the positions of president and vice-president.

1998, c. 37, s. 568; 2000, c. 29, s. 641.

568.1. Notwithstanding the first paragraph of section 568, a Chamber may, by amending its internal management by-laws, not later than three months before the end of the term of office of the members of its first board of directors who were elected to the board under sections 289 and 290, extend the term of three such members for a one-year period and the term of three other such members for a two-year period.

2000, c. 29, s. 642.

569. The Minister shall determine the amount of the first dues that firms, independent representatives and independent partnerships must pay to the Bureau for the account of each Chamber. The amount shall remain applicable until a new amount is determined in accordance with section 320.

1998, c. 37, s. 569.

570. The Chambre de l’assurance de dommages may, during the first two years following 20 June 1998, collect special annual contributions of $100 from damage insurance brokers for the financing of the broker identification campaign managed by the Insurance Brokers Association of Canada.

The special contributions shall be remitted to the organization having its head office in Québec that has been authorized to receive them by the manager of the broker identification campaign.

1998, c. 37, s. 570.

571. The Minister shall determine the amount of the first contribution that firms, independent representatives and independent partnerships must pay to the Bureau for the account of the compensation fund. The amount shall remain applicable until a new amount is determined in accordance with section 278.

1998, c. 37, s. 571.

572. Notwithstanding section 177, the board of directors of the Bureau may appoint its personnel before adopting a by-law under that section. However, as soon as the by-law is adopted, the remuneration, employment benefits and other conditions of employment of the persons so appointed shall be revised, where necessary, in accordance with the by-law.

1998, c. 37, s. 572.

573. In addition to the insurance products referred to in sections 424 and 426, a credit union may, in accordance with the provisions of Title VIII, continue to distribute the insurance products it distributed on 20 June 1998.

The Government shall, by order, identify those products.

1998, c. 37, s. 573.

574. The provisions of Chapter III of Title II, adapted as required, apply to a firm acting through a representative in insurance of persons or a group insurance representative during the year following 1 October 1999.

During that period, the Bureau may, by regulation, create a class of agents and a class of brokers in the sectors of insurance of persons and group insurance of persons, and determine the requirements of each class.

A regulation made under the second paragraph shall be submitted to the Government for approval with or without amendment.

1998, c. 37, s. 574.

575. When a regulation made under the second paragraph of section 574 is approved, the provisions of the first paragraph of that section shall continue to apply while the regulation remains in force.

1998, c. 37, s. 575.

576. In addition to the amounts to be paid by the Bureau to the Commission pursuant to section 250, the Commission may claim from the Bureau an amount representing a share of the surplus the Commission pays into the Consolidated Revenue Fund pursuant to section 26 of the Act to amend the Securities Act (Statutes of Québec, 1997, chapter 36).

1998, c. 37, s. 576.

577. In addition to the transitional provisions provided for in this Title, the Government may, in a regulation made before 1 July 1999, make any other transitional provision needed to supply any deficiency and ensure the application of this Act.

A regulation made pursuant to the first paragraph is not subject to the publication requirements prescribed by section 8 of the Regulations Act (chapter R‐18.1).

1998, c. 37, s. 577.

TITLE XII MISCELLANEOUS PROVISIONS

578. In Acts and the statutory instruments under them, and in contracts or other documents, unless otherwise indicated by the context,

(1)  a reference to the Act respecting market intermediaries (chapter I‐15.1) is a reference to this Act;

(2)  the expressions “market intermediary in insurance business”, “market intermediary in damage insurance” and “market intermediary in insurance of persons” mean, respectively, “insurance representative”, “agent or broker in damage insurance or claims adjuster” and “representative in insurance of persons” within the meaning of this Act.

1998, c. 37, s. 578.

579. The Government may, on the conditions and to the extent it determines, guarantee any loan contracted by the Bureau during fiscal years 1998-1999 and 1999-2000.

Where the Government guarantees such a loan, the Bureau must, at the request of the Minister, either directly or through the financial institutions with which it does business, provide the Minister with any information concerning its financial situation in the manner and within the time indicated by the Minister.

The sums required for the purposes of this section shall be taken out of the Consolidated Revenue Fund.

1998, c. 37, s. 579.

580. The Minister must, on or before 1 October 2004, and every five years thereafter, report to the Government on the application of this Act and, if need be, on the advisability of maintaining it in force or amending it.

The report shall be tabled in the National Assembly within 15 days or, if the Assembly is not sitting, within 15 days of resumption.

1998, c. 37, s. 580.

580.1. The Autorité des marchés financiers is responsible for the administration of this Act.

2002, c. 45, s. 498; 2004, c. 37, s. 90.

581. The Minister of Finance is responsible for the administration of this Act.

1998, c. 37, s. 581.

582. (Omitted).

1998, c. 37, s. 582.

583. (Omitted).

1998, c. 37, s. 583.

REPEAL SCHEDULES

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 37 of the statutes of 1998, in force on 1 April 1999, is repealed, except section 583, effective from the coming into force of chapter D-9.2 of the Revised Statutes.

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), section 12, the first paragraph of section 13, sections 14 to 16, 18 to 25, 27, 29, 30, 33 to 39, 41 to 57, 60, 66 to 69, 71, 73 to 157, 186 to 188, 191, 192, 197 to 199, 218 to 222, 230, the second paragraph of section 233, sections 234 to 243, 249, 250, the third paragraph of section 256, the first and second paragraphs of section 274, sections 275 to 278, the second paragraph of section 288, sections 289 to 295, the first paragraph of section 296, the first paragraph of section 297, sections 298, 300, 301, the first paragraph of section 315, sections 317, 318, 320, 329, 330, 334 to 350, 353, 354, 359 to 363, 367 to 369, 371 to 407, the first paragraph of section 408, sections 409, 410, 415, 417 to 422, 425, 427 to 439, 441, 442, 444 to 502, 507 to 509, 511 to 542, 544 to 567, 569 to 571, the first paragraph of section 573, sections 574 to 576, 578, 580 and 582 of chapter 37 of the statutes of 1998, in force on 1 April 2000, are repealed effective from the coming into force of the updating to 1 April 2000 of chapter D-9.2 of the Revised Statutes.

In accordance with section 9 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), sections 17, 26, 31 and 32 of chapter 37 of the statutes of 1998, in force on 1 April 2003, are repealed effective from the coming into force of the updating to 1 April 2003 of chapter D-9.2 of the Revised Statutes.