{"id":290477,"date":"2015-11-10T14:45:00","date_gmt":"2015-11-10T19:45:00","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/uncategorized\/osc-approves-no-contest-settlement-with-quadrus\/"},"modified":"2017-12-19T12:20:40","modified_gmt":"2017-12-19T17:20:40","slug":"osc-approves-no-contest-settlement-with-quadrus","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/from-the-regulators\/osc-approves-no-contest-settlement-with-quadrus\/","title":{"rendered":"OSC approves no-contest settlement with Quadrus"},"content":{"rendered":"<p> Toronto-based Mutual fund dealer Quadrus Investment Services Ltd., expects to pay $8 million in restitution to clients who inadvertently paid higher MERs when they were entitled to lower-cost versions of their funds.<\/p>\n<p> The Ontario Securities Commission (OSC) on Tuesday approved a no-contest settlement agreement with Quadrus, which self-reported an apparent compliance issue that resulted in certain clients owning higher-MER versions of its funds when they could have been in cheaper funds based on the size of their holdings.<\/p>\n<p> OSC staff alleged that control and supervision inadequacies resulted in the clients paying excess fees.<\/p>\n<p> As part of the deal with the OSC, Quadrus agreed to pay approximately $8 milllion in compensation to the affected clients. It also agreed to make a voluntary payment of $250,000 to the regulator, along with $20,000 in costs.<\/p>\n<p> According to the settlement agreement, the issue came to light in the wake of the OSC&#8217;s first ever no-contest settlement, which was reached with several TD investment firms in November 2014. &#8220;Quadrus discovered the MER control and supervision inadequacy as part of a review of its internal practices and procedures prompted by the publication of a no-contest settlement agreement [with TD],&#8221; the settlement agreement says.<\/p>\n<p style=\"text-align: center;\"> See: <strong><a href=\"http:\/\/www.investmentexecutive.com\/news\/from-the-regulators\/td-to-repay-13-5-million-to-clients-it-overcharged\" target=\"_blank\">TD to repay $13.5 million to clients it overcharged<\/a><\/strong><\/p>\n<p> The agremeent with TD was the first use of a no-contest settlement by a Canadian regulator, which allows the firm to resolve an enforcement case without admitting to any wrongdoing. The case with Quadrus was also resolved on a no-contest basis.<\/p>\n<p> According to today&#8217;s settlement agreement, there was no evidence of dishonest conduct by Quadrus. The firm discovered and self-reported the issue; it also co-operated with OSC staff.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quadrus to pay clients $8 million in compensation<\/p>\n","protected":false},"author":38954,"featured_media":284259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2324],"tags":[2796],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/290477"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=290477"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/290477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media\/284259"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=290477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=290477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=290477"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=290477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}