OSC, Man­ulife reach pre­lim­i­nary deal

The Guardian (Charlottetown) - - BUSINESS -

TORONTO — The On­tario Se­cu­ri­ties Com­mis­sion says it has reached a pre­lim­i­nary set­tle­ment deal with Man­ulife Se­cu­ri­ties Inc. af­ter a num­ber of clients were in­ad­ver­tently charged ex­ces­sive investment fees.

Ac­cord­ing to a state­ment of al­le­ga­tions, Man­ulife no­ti­fied the pro­vin­cial fi­nan­cial reg­u­la­tor in June 2015 that it dis­cov­ered “in­ad­e­qua­cies” in its pay­ment sys­tems that led to cer­tain clients di­rectly or in­di­rectly be­ing billed ex­cess fees.

The ex­tra­ne­ous fees, which were paid from 2005 and into 2007, went un­de­tected by the com­pany.

The state­ment says that Man­ulife has taken “cor­rec­tive ac­tion” and has since im­ple­mented ad­di­tional con­trols and mon­i­tor­ing sys­tems to pre­vent the in­ad­e­qua­cies from oc­cur­ring in the fu­ture. It also told the OSC that it plans to pay ap­pro­pri­ate com­pen­sa­tion to those af­fected clients. The OSC has sched­uled a hear­ing to ap­prove the no-con­test set­tle­ment agree­ment on July 13.

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