A regulatory hearing panel will consider a settlement with Royal Mutual Funds Inc. regarding allegations that, for almost 20 years, the firm had inadequate systems for ensuring that RESP grant requests were being filed.
The Canadian Investment Regulatory Organization (CIRO) announced that a proposed settlement will be considered at a hearing on Oct. 15.
According to the hearing notice, the proposed settlement involves an allegation that the fund dealer violated self-regulatory rules between October 2001 and May 2021 by failing to “establish and maintain an adequate system of controls and supervision to ensure requests were submitted for Canada Education Savings Grant [CESG] payments on behalf of eligible client accounts.”
The CESG is a federal government grant of up to $500 per year that is triggered by annual RESP contributions, to a lifetime maximum of $7,200.
The allegation has not been proven.
A spokesperson for Royal Bank of Canada, of which Royal Mutual Funds Inc. is a subsidiary, said the institution does not comment on matters that are before the regulators.
The details of any settlement will be disclosed only if the hearing panel approves the deal between CIRO staff and the firm.
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