Michel Fragasso, chair of the Canadian-equivalent to the ICI, the Investment Funds Institute of Canada (IFIC), resigned on Friday after Canadian regulators announced an investigation into a company that he chairs.

The Autorité des marchés financiers (AMF) announced on Thursday that it is investigating Norbourg Asset Management Inc. and the Fonds Evolution .

Fragasso is chair of Fonds Evolution Inc and a senior vice president at Norbourg Asset Management.

The Canadian Press reported that more than 100 police officers and related people raided the Montreal and Toronto offices of Norbourg as part of a "major fraud investigation."

The authorities are investigating a $70.7 million discrepancy between the company's reported assets and actual assets under management, as well as misreported financial results.

"[Fragasso] has been an integral voice at IFIC for more than a decade and has been well know for helping to build our industry in Quebec," said Brenda Vince, who was named acting chair of the trade group.  

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