July 10, 2017 09:45
Thefinancial markets Authority has recently concluded agreements with six financial institutions in connection with the payment of excess fees by some of their customers. The institutions involved are National Bank Investments inc., National Bank financial inc., Industrial Alliance securities inc., Investia Financial Services inc., Laurentian Bank Securities inc. and BLC Financial Services, inc.
As of February 2015, the Authority had conducted an investigation with respect to the two issues identified in the canadian industry, focusing on the inadequacy of the controls and of the internal policies of the registered.
The Authority has concluded that the targeted institutions have failed to maintain and apply adequate systems of control and supervision of their activities to provide reasonable assurance that they were acting in accordance with the provisions of the securities Act and its regulations.
Over-billing of management fees
In the framework of the agreements, the institutions concerned have proceeded to the payment of compensation to all customers affected by the problems of over-billing of management fees, the total payable compensation to customers affected between 50 000 and $ 650 000 $ according to the institutions concerned and the problems encountered. They have also put in place various control measures to address deficiencies and avoid the repetition of failures.
Considering the shortcomings, the admissions made and the reimbursements made to the affected consumers, the institutions concerned have agreed to pay penalties of $ 65,000 (National Bank Investments inc. and National Bank Financial inc.), of $ 87 500 (Industrial Alliance securities inc. and Investia Financial Services inc.) and 65 000 $ (Laurentian Bank Securities inc. and BLC Financial Services, inc.).