Manulife in settlement deal with OSC after clients wrongly paid excess fees

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Incidental fees paid from 2005 and into 2007 went undetected by the firm

The Canadian Press Posted: Jul 11, 2017 1:31 PM ET Last Updated: Jul 11, 2017 1:34 PM ET

The Ontario Shelters Commission says it has reached a preliminary settlement deal with Manulife Refuges Inc. after a number of clients were inadvertently charged excessive investment payments.

According to a statement of allegations, Manulife notified the provincial financial regulator in June 2015 that it unearthed «inadequacies» in its payment systems that led to certain clients directly or indirectly being billed leftover fees.

The extraneous fees, which were paid from 2005 and into 2007, slipped undetected by the company.

The statement says that Manulife has taken «corrective vim» and has since implemented additional controls and monitoring systems to prevent the inadequacies from cross someones minding in the future. It also told the OSC that it plans to pay appropriate compensation to those counterfeit clients.

The commission staff says in the statement that it has not found any testify of «dishonest conduct» by Manulife.

The OSC has scheduled a hearing to approve the no-contest deciding agreement on July 13.

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