Scotia Capital, Scotia Securities and HollisWealth Advisory Services have agreed to pay almost $20 million in client compensation as part of a no-contest settlement with the Ontario Securities Commission.
The OSC has alleged that there were inadequacies in the Scotia Dealers’ controls and supervision, resulting in some clients paying excess fees. However, the agency found no evidence that the Scotia Dealers engaged in willful dishonesty.
Scotia neither admitted nor denied the accuracy of the OSC’s conclusions. However, the Scotia Dealers have agreed to compensate clients a total of $19,997,821. The Scotia Dealers have also paid $800,000 toward the OSC’s efforts to protect investors and $50,000 to defray the costs of the investigation.
The Scotia agreement marks the fifth no-contest settlement approved by the OSC. The settlements have resulted in about $200 million in compensation to investors. Earlier this year, the agency approved a no-contest settlement with CI Investments. In that case, an administrative error understated the value of client investments, resulting in mutual- and segregated-funds clients being owed a total of $156.1 million.
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