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The Ontario Securities Commission will hold an enforcement hearing on July 3 to consider allegations that  Toronto-based Caldwell Investment Management Ltd. (CIM) failed to “provide best execution of equity and bond trades for its clients which resulted in overpayments by its clients.”

The statement of allegations dated June 12 outlines three alleged breaches of securities law by the portfolio and investment fund manager:

  • CIM didn’t have adequate policies in place to manage the conflicts of interest that arose when it executed most of its trades through an affiliated investment dealer, Caldwell Securities Ltd.
  • CIM didn’t regularly evaluate whether best execution was obtained for clients; and,
  • the firm’s independent review committee (IRC) was unable to properly monitor best execution practices “because CIM provided inaccurate and insufficient information to the IRC.”

The OSC’s allegations have not been proven.