Bmo Private Investment Counsel Inc.

Allegations: BETWEEN MAY 2015 AND MAY 2016, FINRA ALLEGED THAT NBSL INCORRECTLY CALCULATED ITS NET CAPITAL. Status: Final Sanction Detail: N.A. Summary: BETWEEN MAY 2015 AND MAY 2016, FINRA ALLEGED THAT NBSL INCORRECTLY CALCULATED ITS NET CAPITAL. WE ENTERED INTO AN AWC AND CHANGED THE WAY WE CALCULATED NET CAPITAL.THE ONTARIO SECURITIES COMMISSION CLOSED THIS FILE ON JUNE 20TH, 2019.

Allegations: BETWEEN SEPTEMBER 2014 AND MARCH 2016, IIROC ALLEGES THAT NB PERMITTED A REGISTERED REPRESENTATIVE TO USE AN ORDER EXECUTION PROCEDURE CONTRARY TO UNIVERSAL MARKET INTEGRITY RULE 6.3. Status: Final Sanction Detail: BMO NESBITT BURNS INC. AGREED TO A FINE OF $50,000 AND COSTS OF $5000. PAYMENT WAS ISSUED ON OCTOBER 25, 2019. Summary: SETTLEMENT AGREEMENT IN WHICH, BETWEEN SEPTEMBER 2014 AND MARCH 2016, BMO NESBITT APPROVED AND PERMITTED AN ORDER EXECUTION PROCEDURE FOR A REGISTERED REPRESENTATIVE WHICH RESULTED IN SMALL ORDERS BEING ACCUMULATED OVER A ONE HOUR PERIOD BEFORE THEY WERE ENTERED ON A MARKETPLACE, IN ORDER TO GET A BETTER PRICE FILL FOR THE CLIENT.

Allegations: IN ITS STATEMENT OF ALLEGATIONS, OSC STAFF ALLEGED TO THE OSC COMMISSION THAT THERE WERE INADEQUACIES IN THE BMO REGISTRANTS' SYSTEMS OF CONTROLS AND SUPERVISION WHICH FORMED PART OF THEIR COMPLIANCE SYSTEMS WHICH RESULTED IN CERTAIN CLIENTS OF THE BMO REGISTRANTS PAYING, DIRECTLY OR INDIRECTLY, EXCESS FEES THAT WERE NOT DETECTED OR CORRECTED BY THE BMO REGISTRANTS IN A TIMELY MANNER. AS THIS WAS A NO CONTEST SETTLEMENT AGREEMENT, NO DETERMINATIONS WERE MADE REGARDING THE ALLEGATIONS. BMO AGREED TO MAKE THE PAYMENTS AND ISSUE THE REPORTS AND ATTESTATION LETTERS DESCRIBED ABOVE IN "PRINCIPAL SANCTION". Status: Final Sanction Detail: SEE DETAILS IN "PRINCIPAL SANCTION". Summary: ON DECEMBER 31, 2018, THE BMO REGISTRANTS COMPLETED MAKING PAYMENTS TO AFFECTED CLIENTS AND REMITTED TO THE CANADIAN FOUNDATION FOR ECONOMIC EDUCATION THE AMOUNTS OWED TO FORMER CLIENTS THAT COULD NOT BE LOCATED, EXCEPT FOR THE PORTION OF THOSE UNPAID AMOUNTS THAT IS BEING REMITTED IN ACCORDANCE WITH UNCLAIMED PROPERTY LEGISLATION.

Allegations: FAILURE TO ADOPT ADEQUATE POLICIES AND PROCEDURES TO PREVENT THE SUBMISSION OF ERRONEOUS ORDERS IN TO THE TMX MARKET ON CLOSE FACILITY Status: Final Sanction Detail: TOTAL AMOUNT $50,000 PAID AS FINE AND $5,000 IN INVESTIGATION COST. THE FINE WAS PAID ON 04/17/2012. Summary: SETTLEMENT AGREEMENT WHEREIN BMO NESBITT BURNS INC. ADMITTED THAT IT FAILED TO ADOPT ADEQUATE POLICIES AND PROCEDURES TO PREVENT THE SUBMISSION OF ERRONEOUS ORDERS INTO THE TMX MARKET ON CLOSE FACILITY.

Allegations: BETWEEN JANUARY 2011 AND MARCH 31, 2017, BMO NBI FAILED TO ADEQUATELY SUPERVISE THE ACTIVITIES OF AN RR IN RELATION TO THE ACCOUNTS BOTH ON THE TIER 1 AND TIER 2 COMPLIANCE LEVELS CONTRARY TO DEALER MEMBER RULES 38.1 AND 2500. Status: Final Sanction Detail: N/A Summary: SETTLEMENT AGREEMENT IN WHICH BMO NBI ADMITTED TO FAILING TO ADEQUATELY SUPERVISE THE ACTIVITIES OF AN REGISTRANT IN RELATION TO TWO CLIENT ACCOUNTS THAT INVOLVED HIGH NEW ISSUE COMMISSIONS AND HIGH TURNOVER RATIOS WHICH SHOULD HAVE RAISED SUITABILITY AND CONFLICT OF INTEREST CONCERNS.

Allegations: THE U.S. COMMODITY FUTURE TRADING COMMISSION ("CFTC") ALLEGED THAT, FROM AT LEAST 2019 THROUGH THE DATE OF THE ORDER, BANK OF MONTREAL ("BMO") (I) FAILED TO KEEP CERTAIN REQUIRED RECORDS IN VIOLATION OF SECTIONS 4S(F)(1)(C) AND 4S(G)(1) AND (3) OF THE COMMODITY EXCHANGE ACT ("CEA") AND CFTC REGULATIONS 23.201(A) AND 23.202(A)(1) AND (B)(1), (II) FAILED TO KEEP RECORDS IN THE MANNER REQUIRED BY CFTC REGULATION 1.31, AND (III) FAILED TO SUPERVISE ITS SWAP DEALER BUSINESS ACTIVITIES DILIGENTLY IN VIOLATION OF SECTION 4S(H)(1)(B) OF THE CEA AND CFTC REGULATION 23.602(A). Status: Final Sanction Detail: BANK OF MONTREAL ("BMO") ADMITTED TO THE FACTS IN THE CFTC'S ORDER, ACKNOWLEDGED ITS CONDUCT VIOLATED THE COMMODITY EXCHANGE ACT ("CEA") AND CFTC REGULATIONS, AND AGREED TO (I) THE ENTRY OF THE CFTC'S FINDINGS; (II) CEASE AND DESIST FROM VIOLATING SECTIONS4S(F)(1)(C), 4S(G)(1) AND (3), AND 4S(H)(1)(B) OF THE CEA AND CFTC REGULATIONS 1.31, 23.201(A), 23.202(A) Summary: ON AUGUST 8, 2023, THE U.S. COMMODITY FUTURES TRADING COMMISSION ("CFTC") ALLEGED THAT BANK OF MONTREAL ("BMO") (I) FAILED TO KEEP CERTAIN REQUIRED RECORDS IN VIOLATION OF SECTIONS 4S(F)(1)(C) AND4S(G)(1) AND (3) OF THE COMMODITY EXCHANGE ACT ("CEA") AND CFTC REGULATIONS 23.201(A) AND 23.202(A)(1)AND (B)(1), (II) FAILED TO KEEP RECORDS IN THE MANNER REQUIRED BY CFTC REGULATION 1.31, AND (III) FAILED TO SUPERVISE ITS SWAP DEALER BUSINESS ACTIVITIES DILIGENTLY IN VIOLATION OF SECTION 4S(H)(1)(B) OF THE CEA AND CFTC REGULATION 23.602(A). BMO ADMITTED TO THE FACTS IN THE CFTC'S ORDER, ACKNOWLEDGED THAT ITS CONDUCT VIOLATED THE CEA AND CFTC REGULATIONS, AND AGREED TO (I) THE SERVICE OF THE CFTC'S ORDER;(II) CEASE AND DESIST FROM VIOLATING SECTIONS 4S(F)(1)(C), 4S(G)(1) AND (3), AND 4S(H)(1)(B) OF THE CEA AND CFTC REGULATIONS 1.31, 23.201(A), 23.202(A)(1) AND (B)(1), AND 23.602(A); (III) PAY A CIVIL MONETARY PENALTY IN THE AMOUNT OF $35,000,000; AND (IV) COMPLY WITH CERTAIN UNDERTAKINGS.