Ontario Securities Commission levels allegations at firm owned by The Bank of Nova Scotia
1832 Asset Management has been accused of breaking mutual fund sales practice rules over the distribution of gift cards and the hosting of two sponsored conferences.
The Ontario Securities Commission has alleged that the firm, which is wholly owned by The Bank of Nova Scotia, also “failed to maintain adequate books, records and other documents in relation to its sales practices”.
The statement of allegations outlines breaches over excessive spending on dealer representatives on business promotional activities between November 2012 and October 2017.
The regulator also accused 1832 Asset Management, during this period, of permitting the provision of items to dealer representatives that were “not of minimal value and/or promotional in value” and that “1832 also provided monetary benefits to DRs in the form of gift cards that were not permitted”.
The OSC alleged that during the months of May 2015 and May 2016, 1832 hosted two mutual fund-sponsored conferences and provided non-monetary benefits to dealer representatives at these events.
