Michel Fragasso, the chairman of the Investment Funds Institute of Canada, stepped down abruptly Thursday following RCMP police raids at various Montreal and Toronto offices of Norbourg Asset Management, where he is a senior vice president.

While the police look for falsified documents, Quebec regulators, meanwhile, have ordered Norbourg to cease operation and have frozen its assets. In its latest financial results, Norbourg's assets came up $70.7 million short of its previous financial results, with $84 million remaining, regulators said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.