(Adds more details, comments from regulator)
TORONTO Dec 15 Bank of Montreal has
agreed a no-contest settlement with the Ontario Securities
Commission that will see the bank compensate customers a total
of C$49.9 million ($37.4 million) for charging excess fees.
The OSC said the settlement follows allegations by OSC staff
that there were inadequacies in BMO's systems of controls and
supervision which resulted in some clients paying excess fees
that were not detected or corrected in a timely manner.
In addition to the compensation, BMO has agreed to make a
payment of C$2.1 million to the OSC, Canada's largest securities
regulator, to help fund investor education and C$90,000 toward
the cost of the investigation.
A number of other Canadian financial institutions have
agreed to similar settlements. Canadian Imperial Bank of
Commerce said in October it had agreed to pay out C$73.3
million in compensation for excess fees.
Fund manager CI Investments agreed to a C$156 million
settlement in February. Toronto-Dominion Bank agreed to
pay C$13.5 million to customers in 2014. Bank of Nova Scotia
agreed to a C$20 million settlement in July.
"The no-contest settlement is a strong enforcement tool that
has resulted in more than a quarter of a billion dollars in
compensation to investors, through seven no-contest
settlements," said Jeff Kehoe, the OSC's Director of
($1 = 1.3346 Canadian dollars)
(Reporting by Matt Scuffham; Editing by Lisa Shumaker, Bernard