We are reviewing this judgement with our legal counsel to determine our next steps and to get more information from the Receivers on the time line going forward, but we wanted to update you on this development, even though we are still working through the details.
In essence, the decision has largely supported the position that NLAR and the Receivers had been putting forward; that post-receivership commissions are trust funds due to the former 50549 salespeople. It also confirms that there is a contractual obligation to pay the commissions due to external brokers and salespeople out of those trust funds. We are glad to see that vendors and purchasers with documented claims to amounts in the trust account for transactions that have not closed are protected as well. Another key piece of the decision says that AccessEasy Funds is not entitled to any post-receivership commissions, except in one instance where a salesperson had already assigned that commission to AccessEasy.
Unfortunately, it also confirmed that amounts due to members from sales that closed prior to February 5 are unsecured and will not receive anything.
This decision was filed yesterday and is subject to a ten-day appeal period. Barring any appeal, the Receivers should soon have a proposed distribution schedule that they will share with us. We will keep you posted with any further information as it is available.
201601G1645 - PWC. v. Bank of Montreal - Mar. 6, 2017 (FINAL) RPS.pdf