The Ontario Securities Commission (OSC) has reprimanded a scholarship plan firm over deficiencies in its compliance systems, and ordered it to provide a report detailing how well its beefed up systems are working.

The OSC said Friday it has approved a settlement agreement with scholarship plan dealer and investment manager, Knowledge First Financial Inc. (KFFI), concerning allegations of deficiencies in the firm’s compliance systems.

According to the settlement, the firm admitted that its compliance systems did need improvement. The deal also acknowledges that it has co-operated with OSC staff, and incurred substantial costs to improve its systems. Indeed, it reports that the firm has spent $4.3 million on consultants and other costs to comply with terms imposed by the OSC in an effort to improve its compliance systems as part of a process begun in 2012.

The deal to settle the regulator’s allegations involves the firm being reprimanded and requiring it to report to the commission on whether the revised policies and procedures and internal controls that it has adopted are being followed, working appropriately, and are being adequately administered and enforced by the firm. The report is required by May 7, 2015.