The Ontario Securities Commission (OSC) will hold a hearing on Dec. 21 to consider a proposed no-contest settlement with investment dealer Assante Capital Management Ltd. and mutual fund dealer Assante Financial Management Ltd. in connection with alleged client overcharging.
Each of the Assante dealers is a subsidiary of Toronto-based Assante Wealth Management (Canada) Ltd.
According to the OSC’s statement of allegations (SOA), the Assante dealers self-reported in March 2015 that an internal review discovered certain clients were not advised they qualified for lower-fee versions of certain mutual funds managed by an affiliated firm.
The Assante dealers are paying compensation to affected clients, according to the SOA, and have made changes to their processes to ensure that eligible clients are automatically shifted into lower-cost products once they meet the required asset threshold.
OSC enforcement staff do not allege any dishonest conduct by the firms.
The terms of the settlement will only be revealed once agreement is approved by the commission.
The OSC has already reached similar no-contest settlements with several large, bank-owned dealers and other firms, for allegedly overcharging clients in various ways.
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