June 27, 2017 / 6:31 PM / in 4 months

RBC to pay $16.5 million to clients in regulatory settlement

A Royal Bank of Canada (RBC) logo is seen on Bay Street in the heart of the financial district in Toronto, January 22, 2015. REUTERS/Mark Blinch/File Photo

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

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