Regulators have released details of settlements reached over the 2007 collapse of the asset backed commercial paper market. Seven securities firms have agreed to pay a total of $138.8 million in administrative penalties and investigation costs.
The probe centered on the distribution of ABCP issued by Coventree, and was a joint effort undertaken by Quebec’s Autorité des marchés financiers, the Ontario Securities Commission and the Investment Industry Regulatory Organization of Canada.
The heaviest penalty will be paid by National Bank Financial, which agreed to pay $75 million to the AMF. The Quebec regulator also agreed to a settlement with Laurentian Bank Securities, which will pay $3.2 million.
CIBC and CIBC World Markets and HSBC Bank Canada reached a settlement with the OSC, agreeing to pay $22 million and $6 million, respectively.
The Investment Industry Regulatory Organization of Canada agreed to three settlements, with Scotia Capital paying $29.27 million, and Canaccord Financial and Credential Securities paying $3.1 million and $200,000, respectively.
The OSC and IIROC have begun disciplinary hearings against Coventree and Deutsche Bank Securities Limited in this matter.
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