{"id":350991,"date":"2018-06-05T14:30:37","date_gmt":"2018-06-05T18:30:37","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/?p=350991"},"modified":"2019-11-13T19:56:03","modified_gmt":"2019-11-14T00:56:03","slug":"osc-to-consider-no-contest-settlement-with-ipc-dealers","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/from-the-regulators\/osc-to-consider-no-contest-settlement-with-ipc-dealers\/","title":{"rendered":"OSC to consider no-contest settlement with IPC dealers"},"content":{"rendered":"

The Ontario Securities Commission (OSC) will hold a hearing on June 7 to consider a proposed no-contest settlement agreement with IPC Securities Corp. (IPCSC) and IPC Investment Corp. (IPCIC) in connection with alleged client overcharging, the regulator announced on Tuesday.<\/p>\n

The details of the settlement will only be revealed if the agreement is approved at the hearing.<\/p>\n

IPCSC is a member of the Investment Industry Regulatory Organization of Canada and is registered as an investment dealer. IPCIC is a member of the Mutual Fund Dealers Association of Canada and is registered as a mutual fund dealer and an expemt market dealer.<\/p>\n

According to the statement of allegations, the dealers self-reported weaknesses in their controls and supervision to their respective self-regulatory organizations in 2015.<\/p>\n

These inadequacies “resulted in certain clients of the IPC dealers paying, directly or indirectly, excess fees that were not detected or corrected by the IPC dealers in a timely manner,” it states.<\/p>\n

\u201cCommission staff do not allege, and have found no evidence of dishonest conduct by any of the IPC dealers,\u201d it adds.<\/p>\n

The alleged overcharging concerns clients in fee-based accounts, which held assets that also included embedded trailer fees and clients that qualified for a lower management expense ratio (MER) series of certain proprietary funds, but paid excess fees by being invested in the higher MER series of the same funds.<\/p>\n

The OSC has resolved a number of similar cases of overcharging with a variety of dealers under its no-contest rules, which allows firms to settle allegations without admitting any wrongdoing, provided they meet certain conditions \u2014 typically including self-reporting, the firm paying client restitution, and other voluntary corrective action.<\/p>\n

\n