The Ontario Securities Commission (OSC) will hold a hearing on June 13 to consider a settlement with Toronto-based Royal Mutual Funds Inc. concerning allegations that the fund dealer paid mutual fund reps higher commissions to sell its proprietary funds in violation of the mutual fund sales practices rule, the regulator announced on Friday.
The details of the settlement will only be revealed if the agreement is approved.
According to the statement of allegations, the fund dealer contravened the sales practices rule by offering and paying reps 10 basis points more in commissions for the sale of its RBC Portfolio Solutions suite of mutual funds than for the sale of third-party funds.
As a result, the OSC alleges that the fund dealer violated the sales practices rule and failed to adopt controls to prevent this sort of violation.
The allegations have not been proven.
Royal Mutual Funds is wholly owned by Toronto-based Royal Bank of Canada.