June 5, 2018 09:45
Photo : Freepik
The administrative Tribunal of the financial markets (TMF) has endorsed an agreement between theAutorité des marchés financiers, the Service investment Peak, the CEO of the Peak financial Group, Robert Frances, and former chief of compliance Jean Carrier in which the company must pay administrative penalties of $ 220,000. An inspection of the Authority has identified various deficiencies related to securities legislation.
The agreement, signed last may 31, provides for penalties of $ 200 000 for all violations and $ 20,000 because Peak failed to comply with the commitments it had undertaken.
Gaps in the systems of control and supervision
If the specific breaches were not disclosed, the Authority explains that deficiencies have been found in the systems of control and supervision set up by Peak. The Group also wished to specify that the charges «do not involve any fraudulent conduct, or dishonest» or «illegal».
Meanwhile, Jean Carrier has agreed to pay an administrative penalty of $ 20,000, in addition to leaving his position. Since the signing of the agreement, Peak has changed to head of compliance. This is Martin Boileau, director of compliance, who has taken over the functions of Mr. Carrier in Service in the investment Peak, said Caroline Combes, director of marketing at Peak, in the Journal of the insurance. He joined the Group at the beginning of 2018. Mr. Carrier, however, remains chief compliance officer for securities Peak and vice-president of the compliance department.
No financial losses to the public
«In addition, the TMF has retained that there had been no financial loss caused to the investing public by the breaches identified,» added the company.
«We take note of the agreement ratified by the TMF. Additional investments of financial resources and time have been achieved in the areas of compliance and internal control of the company in order to quickly address the situation, » said Mr. Frances.
The breaches were found during an inspection of the Authority in April 2016. The Authority explains that Peak has implemented an action plan to respond to the concerns it has expressed in its inspection report and has appointed an independent auditor. It is the first Peak, which unveiled the agreement ratified.
«Even if we deplore the situation, it is important to remember that it is mistakes that we are already working to rectify quickly. This situation is an opportunity to enhance our work and our services to our advisers and their clients. This does not call into question our business model, quite the contrary. Our goal is to continue to serve the customers according to their best interest and independence «, concluded Mr. Frances.