The Canadian Press

Two major financial institutions accused of misdealings in the asset-backed commercial paper market will have to dole out $28 million in fines and costs, in a settlement reached with the Ontario Securities Commission on Monday.

CIBC World Markets (TSX:CM) will pay a fine of $21.7 million, plus $300,000 for the cost of the investigation, while HSBC Bank Canada will pay $5.925 million, plus another $75,000 in investigation costs.

The settlement came as securities regulators across the country reviewed several proposed settlements in connection with the ABCP meltdown.

Scotia Capital Inc. (TSX:BNS) appeared before a Investment Industry Regulatory Organization of Canada panel hearing on similar allegations.

In Vancouver Monday, IIROC heard the terms of settlements for Canaccord Financial Ltd. (TSX:CCI) and Credential Securities Inc., both accused of not taking steps to ensure their staff understood the complexities and risks involved with the controversial investments.

The Canadian $32-billion ABCP market ground to a halt in August 2007 amid fears that the assets behind the notes included U.S. subprime mortgages and other high-risk loans.