Publications
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Bill 30 – legislative changes concerning insurance
On June 7, 2023, the Minister of Finance of Quebec tabled and presented Bill 30 before the National Assembly, an omnibus bill entitled An Act to amend various provisions mainly with respect to the financial sector (hereinafter the “Bill”). The Bill includes certain amendments to the provisions of (…)
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Clarifications regarding insurance products offered on the Internet
In early 2022, the Autorité des marchés financiers (the “AMF”) conducted specific consultations on financial products offered on the Internet. Further to these consultations, the AMF published explanations on the Regulation respecting Alternative Distribution Methods (the “RADM”) in late (…)
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Amendments to the Charter of the French Language: Impacts on the Insurance Sector
Bill 96 – An Act respecting French, the official and common language of Québec (the “Act”) - was adopted on May 12, 2022 and assented to on June 1, 2022, its effective date. Certain provisions are already in force; for other provisions, a transitional period ranging from several months to three (…)
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Complaint processing: New framework to come for financial institutions and financial intermediaries
Last September, the AMF published its draft Regulation respecting complaint processing and dispute resolution in the financial sector (the “Draft Regulation”). The consultation period for it ended on December 8, 2021. The AMF is currently reviewing the many comments it received. The Draft (…)
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Three key points about the Regulation respecting damage insurance brockerage
On December 13, 2019, the Regulation respecting damage insurance brokerage (the “Regulation”), adopted under the Act respecting the distribution of financial products and services (“ARDFPS”), came into force. The Regulation includes the following changes: New titles for firms and qualification (…)
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Bill 141: Checklist on insurance products offered via the internet and distribution without a representative
Download your checklist A major reform of the financial sector and, more specifically, of the standards surrounding the practice of professionals governed by the Autorité des marchés financiers (the “AMF”) is now applicable under the Act mainly to improve the regulation of the financial sector, (…)
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Builders’ Risk Insurance: Interpreting the Usual Faulty Workmanship and “LEG” Exclusions in connection with Ledcor and Acciona
Ledcor The issue in Ledcor1 was whether the builder’s risk policy taken out by the contractor that was contractually responsible for cleaning the windows of a building, covered damage to the windows caused by its poor cleaning work. The financial impact was significant since the cost of re-doing (…)
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Bill 150 and the distribution of financial products and services
On October 31, 2017, Québec’s Finance Minister, Carlos J. Leitão, introduced Bill 150, An Act respecting mainly the implementation of certain provisions of the Budget Speeches of 17 March 2016 and 28 March 2017 (“Bill 150”). In this newsletter we will discuss the changes made to the Civil Code of (…)
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Bill 150 and damage insurance brokerage
On October 31, 2017, Québec’s Finance Minister, Carlos J. Leitão, introduced Bill 150, An Act respecting mainly the implementation of certain provisions of the Budget Speeches of 17 March 2016 and 28 March 2017 (“Bill 150”). In this article, we will discuss the changes made to the Act respecting the (…)
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Comprehensive reform of the rules governing the regulation
and operations in the Québec financial sectorOn October 5, 2017, Québec's Minister of Finance, Carlos J. Leitão, has tabled Bill 141 in Québec's National Assembly. The Bill, which is 470 pages long and includes some 750 sections, is entitled An Act mainly to improve the regulation of the financial sector, the protection of deposits of money (…)
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Managing potential conflicts of interest in investment funds
The high level of information asymmetry between investment fund managers and their investors1 can give rise to significant conflicts of interest which must be adequately managed. This article discusses the main conflicts of interest encountered in standard private equity, venture capital and hedge (…)
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Press release from the ministère des Finances of Québec
Consultation on the 20% RuleOn April 18, 2017, the ministère des Finances of Québec announced a public consultation on the rules enacted in An Act respecting the distribution of financial products and services to limit the ownership of damage insurance firms by financial institutions. This consultation’s objective is to (…)
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CRS: Be ready for July 1st, 2017
CRS entry into force: July 1st, 2017 The Common Reporting Standard (“CRS”) will impose new obligations on financial institutions, including investment funds, as of July 1st, 2017. These rules are an addition to the existing Foreign Account Tax Compliance Act (“FATCA”), which applies to Canadian (…)
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Artificial Intelligence and the 2017 Canadian Budget: is your business ready?
The March 22, 2017 Budget of the Government of Canada, through its “Innovation and Skills Plan” (http://www.budget.gc.ca/2017/docs/plan/budget-2017-en.pdf) mentions that Canadian academic and research leadership in artificial intelligence will be translated into a more innovative economy and (…)
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The Supreme Court of Canada reinforces the protection of litigation privilege by elevating it to class privilege status
Ten years after Blank v. Canada (Minister of Justice),1 the leading case regarding litigation privilege, the Supreme Court of Canada has seized the opportunity to reaffirm and expand on the principles set out in that important decision. Indeed, in its most recent case, Lizotte v. Aviva Insurance (…)
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Honesty of financial advisors and discretion of the Autorité des marchés financiers: the Québec Court of Appeal rules
In a decision issued last May 20,1 the Québec Court of Appeal affirmed a judgment2 of the Superior Court of Québec rendered on October 28, 2013, which dismissed the action in damages for more than $7 million brought by a former representative in insurance of persons and in group savings plan (…)
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The Court of Appeal: The liability of the life insurance broker is not limited to the framework of the contractual relationship
The facts of the Roy v. Lefebvre case On June 25, 2014, the Superior Court1 allowed the action of an insured against a life insurance broker and his firm. The context of the subscription of the insurance policy is somewhat unusual and deserves explanations. In 1992, the purchaser of an immovable (…)
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IIROC White Paper — Proposed changes to the current structure for distributing mutual funds in Canada
On November 25, 2015, the Investment Industry Regulatory Organization of Canada (IIROC) published a White Paper for consultation. It is seeking comment on two proposals which, if approved and implemented, would change the current structure for distributing mutual funds in Canada. A “restricted (…)
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Equity crowdfunding - The Autorité des marchés financiers adopts a new prospectus exemption for startups
The Lavery GO inc. Program team is happy to inform you that the Autorité des marchés financiers(AMF) announced yesterday the implementation of an equity crowdfunding exemption which allows startups to raise up to $500,000 in capital per year. Under this exemption, startups whose head office is (…)
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The cooperative capital markets regulatory system: Publication oF the legislative Drafts – a new stage is reached
On September 8, the Canadian Department of Finance announced the signature of a memorandum of agreement (the "Agreement") between the provinces of British Columbia, Ontario, Saskatchewan and New Brunswick, and the federal government (the "Participating Jurisdictions") formalizing the terms and (…)
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What precautions should a proposed director take prior to accepting to act as a corporate director? / What are the duties of a member of a board of directors?
This Need to Know Express is part of a series of newsletters which each answers one or several questions in a practical and concrete way. These bulletins have been or will be published over the next few weeks. In addition, a consolidated version of all the Need to Know Express newsletters published (…)
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Self-evaluation process of financial institutions regarding the Sound Commercial Practices Guideline: What is the objective and what will be the impacts?
The Sound Commercial Practices Guideline (the “Guideline”) published by the Autorité des marchés financiers (the “AMF”) in June 2013 and intended for insurers of persons or damages, holding companies controlled by an insurer, trust and savings companies or financial services (…)
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Is a director required to be a shareholder or member of the legal person? / Who is eligible to become a director?
This Need to Know Express is part of a series of newsletters which each answers one or several questions in a practical and concrete way. These bulletins have been or will be published over the next few weeks. In addition, a consolidated version of all the Need to Know Express newsletters published (…)
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Capital requirements of life insurance companies : Where do we stand ?
AT THE INTERNATIONAL LEVELOn December 16, 2013, the International Association of Insurance Supervisors (the “IAIS”), which groups the regulators of 140 countries, including Canada, published a consultation document proposing to the international community a series of regulatory capital (…)
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Regulatory Offences in the Distribution of Insurance Products: A Call for Diligence
On November 21, 2013, the Supreme Court of Canada issued its judgment in the case of La Souveraine, Compagnie d’assurance générale v. Autorité des marchés financiers, 2013 SCC 63, a decision which is now critically important in the context of the distribution of insurance products in Quebec. (…)
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The Office of the Superintendent of Financial Institutions published its draft guideline Liquidity Adequacy Requirements
On November 28, 2013, the Office of the Superintendent of Financial Institutions (OSFI) published its draft guideline entitled Liquidity Adequacy Requirements1 which set out the new liquidity requirements that may eventually apply to federal deposit-taking institutions, that is, the banks, bank (…)
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New measures to protect consumers of prepaid credit cards: The follow-up
This publication was authored by Luc Thibaudeau, former partner of Lavery and now judge in the Civil Division of the Court of Québec, District of Longueuil. In November 2012, Lavery published a newsletter concerning the announcement made by the Harper government on October 24, 2012 of the adoption (…)
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Electronic commerce in insurance products: The CCIR adopts the final version of its position paper
Over the last few years, the Canadian Council of Insurance Regulators1 (“CCIR”) has taken an active interest in the issue of the electronic commerce of insurance products and the necessity of ensuring the adequate protection of the interests of consumers in this context. In May 2013, the (…)
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Legal newsletter for business entrepreneurs and executives, Number 18
CONTENTS Easing the financing rules while waiting for crowdfunding Avoiding disputes by entering into a shareholders’ agreement Tenth anniversary of Bill 72 : Land protecton and rehabilitationEASING THE FINANCING RULES WHILE WAITING FOR CROWDFUNDINGJosianne BeaudryThere is no doubt (…)
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E-Distribution of Insurance Products: the CCIR Publishes its Recommendations
In January 2012, the Electronic Commerce Committee of the Canadian Council of Insurance Regulators (CCIR)1 released an issue paper entitled “Electronic Commerce in Insurance Products”, through which it invited insurers and intermediaries to provide feedback on certain targeted issues (…)
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Amendments made to the Act respecting insurance of Quebec to allow transfers between participating funds and non-participating funds
On June 14, 2013, the Act respecting insurance (Quebec) (the "Act") was amended by sections 1 to 5 of An Act to amend various legislative provisions mainly concerning the financial sector. The new sections, 66.1.1 to 66.1.6, have been added to the Act in order to henceforth allow an (…)
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To What Extent are Insurers Required to Cover Premises where Criminal Activities are Conducted?
In a recent decision by the Court of Appeal of Québec, the Honourable Jacques Chamberland, J.C.A. reviewed the application of exclusion clauses contained in a home insurance policy in the context of criminal activities1.THE FACTSThe Appellant, Union canadienne compagnie d’assurance insured the (…)
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The Court of Appeal confirms that the policyholder and the insurer may agree to modify the provisions of a group insurance contract without consulting the participants
The decision of the Court of Appeal in the La Capitale case has been expected since February 2012 when the Superior Court dismissed the class action taken against an insurer who, with the consent of the policyholder, had unilaterally modified the waiver of premiums clause in a group insurance (…)
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Domestic Systematically Important Banks
On March 26, 2013, the Office of the Superintendent of Financial Institutions (“OSFI”), the Canadian bank regulator, issued an Advisory in which it identified the banks considered to be systematically important for Canada in accordance with the framework set out by the Basel Committee on (…)
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OSFI’s new expectations with respect to the governance of federally-regulated financial institutions
The quality of corporate governance practices increasingly represents a key factor to maintaining the trust of depositors, policyholders and most stakeholders who are active on capital markets. Considering the unique features of financial institutions and the risks arising from their (…)
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Interpretation of the Code of Conduct for the Credit and Debit Card Industry in Canada: The Financial Consumer Agency of Canada provides some clarification
This publication was authored by Luc Thibaudeau, former partner of Lavery and now judge in the Civil Division of the Court of Québec, District of Longueuil. On February 13, 2013, the Financial Consumer Agency of Canada (the “Agency”) issued a new guidance (the “Guidance”) to clarify the (…)
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Relaxing of the liquidity coverage ratio under Basel III
On January 6, 2013, the Basel Committee on Banking Supervision announced that it was relaxing the liquidity rules that will be applied to banks beginning in 2015. The Group of Central Bank Governors and Heads of Supervision (“GHOS”), the oversight body of the Basel Committee, then (…)
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Francization – Bill No 14 amending the Charter of the French language
This publication was authored by Luc Thibaudeau, former partner of Lavery and now judge in the Civil Division of the Court of Québec, District of Longueuil. The title of this newsletter gives a good summary of the explanatory notes that serve as an introduction to Bill 14, entitled An Act to amend (…)
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AMF Investigations: The duty to answer an investigator and his jurisdiction to rule on objections (continued)
With regard to our In Fact and In Law Express newsletter of July 2012, entitled ‘‘AMF Investigations: The duty to answer an investigator and his jurisdiction to rule on objections’’, please be informed that, on December 20, 2012, the Supreme Court dismissed Fournier’s (…)
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New consumer protection measures for prepaid credit cards
This publication was authored by Luc Thibaudeau, former partner of Lavery and now judge in the Civil Division of the Court of Québec, District of Longueuil. On October 24, 2012, the Harper government announced its intentions to enact new regulations to protect consumers who use prepaid credit cards (…)
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Investment and Financial Security Advisors: Respect your clients’ goals and document your files!
Two recent decisions of the Court of Appeal remind us of the duty on investment advisors and financial security advisors to know their client and the correlative duty of information. In both cases, the Court of Appeal held that the advisor had breached his duty to know his client, assess the (…)
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AMF Investigations: The duty to answer an investigator and his jurisdiction to rule on objections (continued see In Fact and In Law Express, December 2012)
The Securities Act [SA] allows the Autorité des marchés financiers [the “AMF”] to order investigations to ensure compliance with the SA and to repress contraventions which may be committed. This is the context in which the Court of Appeal handed down a decision on June 22, 2012 going to (…)
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E-Distribution of Insurance Products: the AMF Wants Your Input!
On February 24, 2012, the Autorité des marchés financiers published, on its website, a notice of consultation entitled Notice and Request and Comment on Internet Insurance Offerings in Québec.This process follows the AMF’s analysis, initiated a few years ago of the issues relating to (…)
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OCRCVM v. Beaudoin and AMF (C.A.) – Courts of justice cannot homologate a disciplinary decision in the absence of a specific legislative provision to that effect
The Investment Industry Regulatory Organization of Canada (IIROC, formerly known as the Investment Dealers Association of Canada (IDA)) is a self-regulatory organization recognized by the Autorité des marchés financiers (AMF), which mainly deals with disciplinary complaints against its members. For (…)
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Supervising the Use of Social Networking Websites by Financial Sector Intermediaries
The use of social media, discussion forums and other websites for business purposes, as a means of communicating with the public, raises increasingly significant compliance issues for regulated entities of the financial sector. Such use may expose registered or certified representatives and, (…)
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BILL 7 – SECTION 115 of the Act Respecting the Distribution of Financial Products and Services
On May 4, 2011, an important Bill was presented by the Minister for Finance, Mr. Alain Paquet.The effect of Bill 7, entitled An Act to amend various legislative provisions concerning the financial sector, is, among other things, to amend section 115 of the Act respecting the distribution of (…)
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Change in Corporate Culture: New Expectations of the AMF for Insurer’s “Commercial Practices”
On March 11, 2011, the Autorité des marchés financiers (the “AMF”) published a draft Commercial Practices Guideline, which is available for public consultation on the website of the AMF until April 22, 2011.This Guideline constitutes a statement of principle on the expectations of the (…)