What happens when your “financial advisor” does not hold a valid licence

Par Bin Zeng, Gowling WLGavec l’aide d’Isabelle Senécal, étudiante en droit In Allyson Taylor Partners Inc. v. Peloton Pharmaceuticals Inc., 2016 QCCS 2580, the Court of Québec determined whether a “financial advisor” could still claim remuneration for services rendered even if they did not hold the necessary licence. The Court first looked at whether the company providing advisory services was truly acting as “financial advisor” without a valid licence, and subsequently considered whether the defendant had acted in good faith and suffered serious prejudice in order to claim nullity of its contract.Context The plaintiff, Allyson Taylor Partners Inc. (“ATP”), an advisory and business consulting enterprise, made a claim against Peloton Pharmaceuticals Inc. (“Peloton”) for its failure to pay ATP in full for services rendered. Following the “Financial Advisory Agreement” between the two parties, ATP’s owner and operator, Sean Budnik, had introduced prospective investors to Peloton’s executives, generating investments of $3,205,000… Lire la suite