A no-contest settlement means that Canadian Imperial Bank of Commerce (CIBC) has agreed to compensate clients a total of $73.3 million. CIBC also will pay $3 million to the Ontario Securities Commission (OSC) and $50,000 to cover the costs of the investigation.
CIBC had been charged with collecting excess fees for certain mutual funds and investment services for over 14 years (from as early as Jan. 1, 2002 until as recently as Jan. 31, 2016). CIBC reported the problem in their systems and controls. New controls and supervision have been implemented to prevent this.
A no-contest settlement was approved by the Ontario Securities Commission with CIBC World Markets Inc., CIBC Investor Services Inc., and CIBC Securities Inc. after the bank agreed to the deal without admitting or denying the conclusions of the OSC staff.