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4 BMO units to pay clients nearly C$50M in no-contest settlement

Four Bank of Montreal units reached a no-contest settlement with the Ontario Securities Commission, whereby BMO Nesbitt Burns Inc., BMO Private Investment Counsel Inc., BMO Investments Inc. and BMO InvestorLine Inc. will pay about C$49.9 million to compensate investors, plus a C$2.1 million voluntary payment to the regulator and an additional C$90,000 in costs of the investigation.

The firms were accused of having inadequate internal controls that resulted in certain clients getting overcharged without detection or due correction, according to a Dec. 15 news release.

The settlement did not indicate any admission of wrongdoing, nor did the OSC allege that the firms engaged in dishonest conduct; the OSC also noted that the firms reported the issue voluntarily, cooperated with the resulting investigation and have since improved their internal controls.