Big Six bank to repay mutual fund clients

After coming to an agreement with the OSC, the bank will repay $21.8 million to clients who were incorrectly charged fees

Big Six bank to repay mutual fund clients

The Royal Bank of Canada (TSX:RY) has agreed to a deal with Ontario's securities watchdog to repay $21.8 million to clients who were mistakenly charged some investment fees.

The Ontario Securities Commission approved Tuesday the no-contest settlement agreement with RBC Dominion Securities Inc., Royal Mutual Funds Inc., and RBC Philips, Hager and North Investment Counsel Inc.

The settlement follows allegations by OSC Staff that there were inadequate systems of controls and supervision, which resulted in clients paying, directly or indirectly, fees they should not have been charged.

RBC discovered and self-reported the problem to the OSC, which said it found no evidence of dishonest conduct.

In addition to the money to be paid to investors, RBC agreed to pay $925,000 to fund the OSC's mandate of protecting investors, plus $50,000 toward the costs of the investigation.

The regulator said RBC has also implemented additional controls and supervision to prevent a re-occurrence.

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