NO EVIDENCE OF DISHONEST CONDUCT BY THE SCOTIA DEALERS.

No-contest settlements are a procedure the OSC adopted in 2014 in which respondents are not required to make formal admissions of misconduct. The process is designed to speed up proceedings and recover funds for harmed investors more quickly.

According to the OSC allegations, some Scotia clients paid excessive management fees on various mutual funds between Jan. 1, 2009 to Dec. 31, 2015. Some of the funds were supposed to charge lower management fees to clients who met a minimum investment threshold, but this didn’t happen.

The OSC alleges the Scotia dealers failed to establish, maintain and apply procedures to establish controls and supervision over the accounts in breach of both the public interest and a nation-wide policy followed by Canada’s provincial securities regulators, National Instrument 31-103–Registration Requirements, Exemptions and Ongoing Registrant Obligations.