The Ontario Securities Commission today announced that settlements have been reached between staff of the commission and three mutual fund managers concerning market timing activities.

The three fund managers are CI Mutual Funds Inc., AGF Funds Inc. and I.G. Investment Management, Ltd. OSC staff allege that the conduct of the three fund managers in failing to protect fully the best interests of the relevant funds was contrary to the public interest.

The OSC will convene hearings on Thursday, December 16 to consider the settlements. Terms are confidential until approved by an OSC panel.

The OSC also said that settlement negotiations with AIC Ltd. are ongoing and that it expects to announce the results of these discussions early next week.

“From the beginning, our focus has been on investors who have been harmed by the activities of market timing traders,” said Michael Watson, OSC enforcement director, in a release.

“This is the largest investigation ever undertaken by the OSC,” Watson said. “We have applied significant resources in a short period of time because we believe this probe is of the utmost importance in terms of restoring investors’ trust.”

Watson added that the probe into market timing activities at other fund managers is also nearing completion. “Phase three of our probe is virtually complete and you will hear from us shortly,” he said.

No evidence of ongoing market timing activity has been found since the review of the Canadian mutual fund industry began in November 2003. In the probe, OSC staff did not uncover any evidence of late trading.