Regulators to distribute $60 million in ABCP funds

The OSC and IIROC announced today that eligible investors who purchased third-party Asset-Backed Commercial Paper (ABCP) will be sent cheques for their pro rata shares of settlement funds by the end of March.

This disbursement is part of the ABCP settlement distribution plan announced in 2012.

Ernst & Young Inc., the Administrator appointed to administer the distribution, began notifying investors this week that their cheques will be sent later this month.

A total of $59.875 million, plus net interest earned on these funds, will be disbursed to eligible investors who purchased ABCP from the following five investment dealers during specified time periods:

• Canadian Imperial Bank of Commerce/CIBC World Markets Inc. and HSBC Bank of Canada, which paid $21.7 million and $5.925 million, respectively, to the OSC.
• Scotia Capital Inc., Canaccord Financial Ltd. and Credential Securities Inc., which paid $28.95 million, $3.1 million and $200,000, respectively, to IIROC.

The monies were collected in enforcement settlements agreed to by these investment dealers.

Also read:

Inching toward an ABCP resolution

Court approves distribution of ABCP funds

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.