Canadian Imperial Bank of Commerce (TSX:CM) has consented to compensate customers a total of $73.3 million in the wake of gathering excess fees for certain mutual funds and investment benefits more than 14 years.
The OSC affirmed the no-contest settlement on Friday with CIBC World Markets Inc., CIBC Investor Services Inc., and CIBC Securities Inc. And the OSC says its staff have found no proof of exploitative manner by CIBC, which self-reported the issue.
According to an announcement of allegations discharged recently by the OSC, CIBC’s investment brokers erroneously charged some of their client’s excess fees for mutual funds, ETFs and other investment items going back to 2002.
The bank consented to the arrangement without conceding or disagreeing the conclusions from securing the OSC staff.
“We will begin reaching out to affected current and former clients to compensate them,” CIBC spokesperson Caroline Van Hasselt said in an email statement.
“We regret the inconvenience this has caused our clients and have taken corrective action by implementing additional controls to prevent it from occurring again.”
CIBC has implemented additional controls and supervision to prevent a recurrence.
CIBC has executed extra controls and supervision to avoid any such from relaping.
“Strong compliance systems are critical to investor protection and market confidence,” Jeff Kehoe, director of enforcement at the OSC, said in statement. “We expect registrants to have effective controls in place to deal fairly with clients with regard to fees, and to correct non-compliant conduct in a timely manner.”
The bank will also pay $3 million to the Ontario Securities Commission toward its mandate of protecting investors, while a further payment of $50,000 will go to cover the costs of the investigation.
The bank will likewise pay $3 million to the Ontario Securities Commission toward its command of ensuring investors, while a further payment of $50,000 will go to take care of the expenses of the investigation.