IIROC releases Deutsche Bank settlement funds

IIROC releases Deutsche Bank settlement funds

IIROC releases Deutsche Bank settlement funds

The Investment Industry Regulatory Organization of Canada (IIROC) has released and distributed additional settlement funds to eligible investors who purchased third-party asset-backed commercial paper (ABCP) from Deutsche Bank Securities (DBS).

Cheques for their pro-rata share of settlement funds were mailed to investors on September 30, the industry body said in a statement.

Deutsche-Bank Securities in February agreed to pay $1-million in a settlement with Canada’s securities regulator over the freeze-up of Canada’s non-bank asset backed commercial paper market in 2007.

In May, IIROC appointed Ernst & Young Inc. to administer the distribution of the settlement funds to eligible investors who purchased ABCP issued by Coventree from DBS between July 25-August 10, 2007.

 A total of $1 million plus interest earned on these funds, net of administration fees, has been disbursed to eligible investors. The funds were collected in an enforcement settlement agreed to by DBS.