An Ontario court has approved a plan submitted by the OSC and IIROC to distribute funds to investors burned in the third-party Asset-Backed Commercial Paper (ABCP) fiasco that began in 2007.
The Superior Court of Justice of Ontario – Commercial List ruled that the order dated June 5, 2008 by the Honourable C. Campbell J. does not preclude the OSC and IIROC from distributing $59.875 million received from five investment dealers in settling ABCP enforcement actions.
Those dealers include Canadian Imperial Bank of Commerce/CIBC World Markets and HSBC Bank of Canada, which agreed to pay $21.7 million and $5.925 million, respectively, to the OSC, and Scotia Capital, Canaccord Financial and Credential Securities, which 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.