IPC Investment Corporation and IPC Securities Corporation will pay $10,970,518 in compensation to clients following a settlement agreement with the Ontario Securities Commission (OSC) announced June 7.
Clients paid excess fees that were not corrected in a timely manner due to alleged inadequate systems of controls and supervision, says the regulator.
The IPC dealers have not admitted nor denied the allegations made by OSC staff.
Paid additional $460,000 to the OSC
The IPC dealers also made a payment of $460,000 to the OSC to be designated for allocation or use by the OSC, plus a further payment of $30,000 to be allocated toward the cost of the investigation.
“OSC staff do not allege, and have found no evidence of, dishonest conduct by the IPC dealers,” added the regulator.
Expected to have appropriate controls
"Registrants are expected to have appropriate controls and supervision in place to protect against excess fees," said Jeff Kehoe, director of enforcement at the OSC. "Regular reviews of a company's internal compliance systems support the integrity of our financial markets and foster investor confidence.”
“After reporting this matter, the IPC dealers provided prompt, detailed and candid co-operation to OSC staff,” said the OSC. “The IPC dealers have taken corrective action designed to address inadequacies and prevent the re-occurrence of similar events in the future.”
To learn more, consult the Settlement Agreement on the OSC’s website.