TORONTO (Reuters) - Royal Bank of Canada (RY.TO) on Tuesday agreed to pay C$21.8 million ($16.5 million) in compensation to clients who were charged excess fees for mutual fund products and fee-based accounts.
Canada’s biggest lender agreed to make the payments as part of a settlement with the Ontario Securities Commission, the country’s biggest securities regulator.
A number of other Canadian financial institutions have agreed to similar settlements.
Canadian Imperial Bank of Commerce (CM.TO) agreed to pay out C$73.3 million in compensation for excess fees last October. Bank of Montreal (BMO.TO) agreed to pay C$49.9 million to customers last December.
Fund manager CI Investments agreed to a C$156 million settlement last February and Bank of Nova Scotia (BNS.TO) agreed to a C$20 million settlement last July. Toronto-Dominion Bank (TD.TO) agreed to pay C$13.5 million to customers in 2014.
RBC will also make voluntary payments totaling C$975,000 to the OSC under the terms of the settlement, the regulator said.
Reporting by Matt Scuffham; Editing by Leslie Adler, Bernard Orr