TORONTO, Nov. 13, 2014 /CNW/ - The Ontario Securities Commission (OSC) today approved a no-contest settlement agreement with TD Waterhouse Private Investment Counsel Inc., TD Waterhouse Canada Inc. and TD Investment Services Inc. (TD Entities) in relation to four separate matters that the TD Entities discovered and self-reported to OSC Staff.
This settlement follows allegations by OSC Staff that, with respect to these four matters, there were inadequacies in the TD Entities' systems of controls and supervision which resulted in clients paying excess fees, which were not detected or corrected in a timely manner.
While having neither admitted nor denied the accuracy of the facts and conclusions of OSC Staff, the TD Entities have agreed to the settlement and will pay compensation of more than $13.5 million to clients. In addition, the TD Entities have made a payment of $600,000 to advance the OSC's mandate of protecting investors, plus a further payment of $50,000 to be allocated toward the costs of the investigation.
After reporting the four matters, the TD Entities provided prompt, detailed and candid co-operation to OSC Staff, Staff of the Investment Industry Regulatory Organization of Canada and Staff of the Mutual Fund Dealers Association of Canada.
"Registrants are required to have robust and effective compliance systems in place and to deal fairly with clients with regard to fees," said Tom Atkinson, Director of Enforcement at the OSC. "A clear message from today's settlement is that we expect registrants to establish and maintain robust and effective systems to ensure compliance with securities law, including the requirement to deal fairly with clients with regard to fees."
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets.
SOURCE: Ontario Securities Commission
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