More than 6,000 clients in fee-based accounts were charged a higher fee than they should have been
The dealers’s approach to supervisory reviews effectively excluded fee-based accounts with large, uninvested cash holdings
More than 250,000 clients have overpaid on fees
The dealers allegedly overcharged fee-based client accounts about $6 million and mutual fund accounts $5.7 million between 2005 and 2016
The OSC has now reached no-contest settlements with all of the big banks and several other firms, generating about $342 million in compensation
The BMO subsidiaries will also make a $2.1-million payment to the OSC and pay $90,000 in costs for overcharging certain retail clients
Going to a fee-based structure has contributed to positive growth in AUM and revenue for advisors as well as increased clients’ satisfaction and trust in these advisors
The three firms also agreed to make a $3-million payment to the OSC and to pay $50,000 in costs for their role in overcharging clients
The firm had discovered that some clients in fee-based accounts were also paying trailer fees as a result of problems within its systems of control and supervision
Regulatory change is not only the biggest trend in the financial services business, but also presents one of the biggest challenges for advisors, survey finds