Proposed distribution of ABCP settlement funds permitted by Court Order

March 13, 2012 (Toronto, ON) - The Ontario Securities Commission (OSC) and Investment Industry Regulatory Organization of Canada (IIROC) today received confirmation from the Superior Court of Justice of Ontario – Commercial List that their proposed plan to distribute funds to investors who purchased third-party Asset-Backed Commercial Paper (ABCP) is permitted by an earlier court order.

The Court ruled that the Order dated June 5, 2008 by the Honourable C. Campbell J. (the “ABCP Order”) does not preclude the OSC and IIROC from distributing $59.875 million received from the following five investment dealers in settling ABCP enforcement actions:

• Canadian Imperial Bank of Commerce/CIBC World Markets Inc. and HSBC Bank of Canada agreed to pay $21.7 million and $5.925 million, respectively, to the OSC.
• Scotia Capital Inc., Canaccord Financial Ltd. and Credential Securities Inc. agreed to pay $28.95 million, $3.1 million and $200,000, respectively, to IIROC.

Details of the distribution plan will be announced and posted on the web sites of the OSC and IIROC in the near future.

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The OSC is the regulatory body responsible for overseeing Ontario’s capital markets. The OSC administers and enforces Ontario’s securities and commodity futures laws. Its mandate is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets.

IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

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