OSC Approves No-Contest Settlement Agreement with Quadrus Investment Services Ltd.

TORONTO – The Ontario Securities Commission (OSC) today approved a no-contest settlement agreement with Quadrus Investment Services Ltd. (Quadrus) in relation to a matter that Quadrus discovered and self-reported to the OSC and that resulted in certain clients paying excess fees. 

This settlement follows allegations by OSC Staff that there were inadequacies in Quadrus’ systems of controls and supervision, which resulted in clients paying excess fees that were not detected or corrected in a timely manner. Staff do not allege, and have found no evidence of, dishonest conduct by Quadrus.

While having neither admitted nor denied the accuracy of the facts and conclusions of OSC Staff, Quadrus has agreed to the settlement and intends to compensate clients a total of $8 million, including opportunity costs on fees.

In addition, Quadrus has made a payment of $250,000 to advance the OSC’s mandate of protecting investors, plus a further payment of $20,000 to be allocated toward the costs of the investigation.

After reporting this matter, Quadrus provided prompt, detailed and candid co-operation to OSC Staff and Staff of the Mutual Fund Dealers Association of Canada. Quadrus has also implemented additional controls and supervision to prevent a re-occurrence of this matter.

“It is important that clients are treated fairly with respect to fees. When this does not happen, we will continue to take enforcement action,” said Tom Atkinson, Director of Enforcement at the OSC.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in the capital markets. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca

 

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