OSC grants fundcos extra year for refund

AIC: $58.8 million AIC: $58.8 million AGF: $29.2 million CI: $49.3 million IG: $19.2 million Franklin Templeton: $49.1 million The original orders were based on OSC findings that the five fund companies had allowed certain investors to move assets in and out of their funds on a short-term basis. Such movements are not prohibited, but […]

By Steven Lamb | July 2, 2008 | Last updated on July 2, 2008
2 min read
  • AIC: $58.8 million
  • AGF: $29.2 million
  • CI: $49.3 million
  • IG: $19.2 million
  • Franklin Templeton: $49.1 million

    The original orders were based on OSC findings that the five fund companies had allowed certain investors to move assets in and out of their funds on a short-term basis.

    Such movements are not prohibited, but the fund companies all had policies in place to penalize trades of funds held for less than a minimum period, usually 60 days. Despite these policies, the fund companies did not charge the stipulated penalties.

    Investors who bought and held the funds were deemed to have been harmed by the frequent trading, as the large sums being shifted in and out of funds resulted in the accrual of additional trading costs by the fund managers.

    Any person who believes they may have invested in one of the relevant funds and has an inquiry related to the matter should contact the Inquiries and Contact Centre at the OSC by phone at 1-877-785-1555, or e-mail at inquiries@osc.gov.on.ca.

    Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

    (07/02/08)

    Steven Lamb

    • AIC: $58.8 million
    • AGF: $29.2 million
    • CI: $49.3 million
    • IG: $19.2 million
    • Franklin Templeton: $49.1 million

    The original orders were based on OSC findings that the five fund companies had allowed certain investors to move assets in and out of their funds on a short-term basis.

    Such movements are not prohibited, but the fund companies all had policies in place to penalize trades of funds held for less than a minimum period, usually 60 days. Despite these policies, the fund companies did not charge the stipulated penalties.

    Investors who bought and held the funds were deemed to have been harmed by the frequent trading, as the large sums being shifted in and out of funds resulted in the accrual of additional trading costs by the fund managers.

    Any person who believes they may have invested in one of the relevant funds and has an inquiry related to the matter should contact the Inquiries and Contact Centre at the OSC by phone at 1-877-785-1555, or e-mail at inquiries@osc.gov.on.ca.

    Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com

    (07/02/08)