Scotia expedites ‘no contest’ settlement

Scotia Capital Inc., Scotia Securities Inc. and Holliswealth Advisory Services Inc. will ask an Ontario Securities Commission panel on Friday to approve a “nocontest” settlement that resolves a case in which the bank allegedly overcharged mutual fund investors.

In February 2015, the bank and its network of retail investment dealers contacted the OSC to report that it had found errors in its compliance system that resulted in clients paying excessive fees.

During a subsequent investigation, the OSC found the overcharge was unintentional, according to a statement of allegations released Tuesday.

“Commission Staff do not allege, and have found no evidence of dishonest conduct by the Scotia Dealers,” the statement says. “The Scotia Dealers are taking corrective action, including implementing additional controls, supervisory and monitoring systems, to prevent the re-occurrence of the Control and Supervision Inadequacies in the future.”