The Royal Bank of Canada has made an agreement with the Ontario Securities Commission to repay more than $21 million to clients who were wrongly charged investment fees.
The settlement follows claims by OSC Staff that there were inadequate systems of controls and supervision, which resulted in clients paying — directly or indirectly — fees they should not have been charged.
According to an article in the Financial Post, “RBC is the latest in a string of large financial institutions to enter a no-contest settlement with regulators after self-reporting the issue of excess fees on funds, along with a plan to reimburse clients.”
In addition to the money that will go to investors, RBC – which self-reported the issue in 2015 — will also pay $925,000 to fund the OSC’s mission to protect investors, plus an additional $50,000 toward the costs of the investigation.
According to the article, the panel says that, “Based on the facts alleged and on the parties’ submissions, in our view the compensation called for in the settlement agreement is appropriate” and that the settlement will save the “substantial costs and delay” of a full, contested hearing.
Also according to the article in the Post, the OSC has reached eight such settlements with companies, resulting in nearly $250 million in compensation to investors, since adopting the no-contest settlement just a few years ago.
See a list of other major Canadian banks that have reached no-contest settlements by reading the full article.Get more Info