(June 23 – 17:30 ET) – In a joint statement, the Royal Bank Financial Group and RT Capital Management Inc. spoke to the Ontario Securities Commission investigation securities transactions undertaken by RT Capital — but didn’t say much.
The transactions involved “two portfolio managers and two traders employed by RT Capital who executed orders on behalf of accounts managed by RT Capital,” says RBFG and RT. “The orders were executed on the Toronto Stock Exchange by various independent brokers. These transactions had the effect of overstating the value of certain portfolios for the quarters in question.”
“The transactions in question involved the trading of 26 stocks on eight trading days between October 30, 1998 and March 31, 1999. Although the impact on portfolio values and fee revenues was small, RT Capital and Royal Bank Financial Group still regard the matter as very serious,” say the companies in their statement.
“RT Capital is in discussions with the OSC to resolve the matter and is cooperating in the investigation. No resolution has yet been reached. To our knowledge, the OSC investigation does not involve any other unit of Royal Bank Financial Group.”
RT Capital says it is not planning to make further comment at this point while the discussion with OSC are in progress.
-IE Staff