CIBC to repay $73 million after overcharging clients for 14 years

TORONTO – Canadian Imperial Bank of Commerce (TSX:CM) has agreed to compensate clients a total of $73.3 million after collecting excess fees for certain mutual funds and investment services over 14 years.

The bank will also pay $3 million to the Ontario Securities Commission toward its mandate of protecting investors, while a further payment of $50,000 will go to cover the costs of the investigation.

The OSC approved the no-contest settlement Friday with CIBC World Markets Inc., CIBC Investor Services Inc., and CIBC Securities Inc. after the bank agreed to the deal without admitting or denying the conclusions of the OSC staff.

The OSC alleged that short-comings in systems and controls at the CIBC dealers resulted in some customers being overcharged from as early as Jan. 1, 2002 until as recently as Jan. 31, 2016.

The OSC says its staff have found no evidence of dishonest conduct by CIBC, which self-reported the problem.

It also says CIBC has implemented additional controls and supervision to prevent a recurrence.