Consensual Agreement and Undertaking Between The Complaints and Investigation Committee of The Life Insurance Council of Saskatchewan ( the Committee )
and Paul Jerome Edmond And Edmond Financial Group Inc.
The Committee is authorized under Bylaw 7, Section 5, subsection 3, subparagraph (b), to enter into consensual resolutions of complaints.
Bylaw 5, Section 1, subsection 1 reads: The administrator shall, in addition to the requirements for the contents of a register required by The Saskatchewan Insurance Act, ( the Act ) and the regulations, record on the register the existence and results of all disciplinary decisions or orders, court orders, alternative dispute resolution agreements, undertakings and mediation agreements involving a licensee or a person to whom the Life Insurance Council of Saskatchewan ("Council") has the authority to issue a licence. Disciplinary actions as described above are reported on the Insurance Councils of Saskatchewan website and the Canadian Insurance Regulators Disciplinary Actions ( CIRDA ) database.
Paul Jerome Edmond ( Edmond ) acknowledges and agrees that: 1. Edmond violated Council Bylaws when: A. Contrary to Bylaw 8, Section 2 (d) he failed to exercise due diligence, resulting in a material mis-statement in an application for licence or report to continue a licence;
i. When he failed to disclose on his Life including Accident and Sickness ( Life A&S ) licence application that he was currently under investigation
Consensual Agreement and Undertaking Page 2 by the Mutual Fund Dealers Association of Canada ( MFDA ) for his violation of the MFDA Rules.
ii. When on August 4, 2014, he declared all statements and answers on his application were true and correct.
B. Contrary to Bylaw 8, Section 2 (g) a licencee may be guilty of misconduct if the licencee: violates any provisions of the Act, the Regulations or the Bylaws;
i. As per Bylaw 2, Section 1, subsection (4)(c)(ii) he failed to notify Council within 30 days of commencement of any professional, occupational or regulatory body proceedings.
Edmond Financial Group Inc. ( EFG ) acknowledges and agrees that: 2. EFG violated Council Bylaws when: A. Contrary to Bylaw 8, Section 2 (d) it failed to exercise due diligence, resulting in a material mis-statement in an application for licence or report to continue a licence;
i. When it failed to disclose on the Life A&S agency application form that Edmond as an officer, partner or director of EFG was under investigation by the MFDA for violation of their Rules.
ii. When on September 9, 2014 it declared all statements and answers on the application were true and correct.
B. Contrary to Bylaw 8, Section 2 (g) a licencee may be guilty of misconduct if the licencee: violates any provisions of the Act, the Regulations or the Bylaws;
i. As per Bylaw 2, Section 1, subsection (4)(c)(ii) it failed to notify Council within 30 days of commencement of any professional, occupational or regulatory body proceedings.
3. Edmond and EFG s rights to appear before a Discipline Committee of Council have been explained to them and they fully understand their rights and/or obligations under Council Bylaw 10;
4. Edmond and EFG waive their rights to appear before a Discipline Committee and undertake not to exercise any appeal rights they may have under Council Bylaw 10, Section 3 or the Act as it relates to matters set out in this Consensual Agreement and Undertaking (Agreement).
5. This Agreement does not preclude the Council from pursuing any other investigation against Edmond and/or EFG for activities not identified in this Agreement that may be in violation of Council Bylaws or the Act.
Consensual Agreement and Undertaking Page 3 6. They have been advised by the Committee that it is in their interests to obtain independent legal advice before entering into this Agreement.
a. Edmond and EFG have obtained such independent legal advice and are satisfied with the same, prior to executing this Agreement.
7. Edmond and EFG hereby affirm that they have read and understood the terms of this Agreement, and are signing it voluntarily and of their own free will.
Edmond, having waived his rights, undertakes to: 1. Pay a fine in the amount of $500.00 EFG, having waived it s rights, undertakes to: 1. Pay a fine in the amount of $500.00 Edmond and EFG, jointly or severally agree to: 1. Reimburse Council s investigation costs in the amount of $550.00 2. Pay all fines and investigative costs within 30 days of receipt of this Agreement. The Committee s Agreement: 1. The Committee agrees to accept from Edmond and EFG either jointly and/or severally the payment of $1,550.00 as full and final resolution of their violation of Council s Bylaws as outlined in this Agreement; and
2. The Committee further agrees to take no further action against Edmond and EFG for the acknowledged violations of Council s Bylaws that are set out in this Agreement.
Consensual Agreement and Undertaking Page 4 Dated at Winnipeg, in the Province of Manitoba, this 11th day of February, 2016. Originally Signed by Paul Jerome Edmond
Dated at Winnipeg, in the Province of Manitoba, this 11th day of February, 2016. Originally Signed by Paul Edmond for Edmond Financial Group Inc.
Dated at Saskatoon, in the Province of Saskatchewan, this 29th day of February, 2016. Originally Signed by Roderick Baxter, Chair, Complaints and Investigation Committee Life Insurance Council of Saskatchewan