TORONTO, March 14, 2017 /CNW/ - Home Capital Group Inc.
(the "Company", TSX: HCG) today made the following disclosure
regarding legal and regulatory matters.
On February 10, 2017 the Company
disclosed it had received an enforcement notice from staff of the
Ontario Securities Commission (OSC) relating to the Company's
disclosure in 2014 and 2015 regarding the impact of the Company's
findings that income information submitted on some loan
applications had been falsified, and the subsequent remedial steps
taken by the Company, including the suspension of mortgage brokers
and brokerages.
Subsequently, staff of the OSC has issued enforcement notices to
several current and former officers and directors of the Company,
relating to that disclosure and, in some instances, trades in the
Company's shares. The individuals have the opportunity to respond
to the notices before OSC staff determines whether to commence
proceedings.
As previously stated, the Company believes that its disclosure
satisfied applicable disclosure requirements.
The Company also announced that a Statement of Claim and Notice
of Action have been filed with the Ontario Superior Court of
Justice against the Company and three of its officers or former
officers regarding a proposed class action lawsuit. The Statement
of Claim seeks permission of the Court to commence a class action
proceeding for alleged misrepresentations in the Company's public
disclosure in 2014 and 2015. This proposed class action has been
previously disclosed by the law firm seeking to pursue it.
The Company believes the claim is unfounded and intends to
vigorously defend the claim.
Home Capital Group Inc. is a public company, traded on the
Toronto Stock Exchange (HCG), operating through its principal
subsidiary, Home Trust Company. Home Trust is a federally regulated
trust company offering residential and non-residential mortgage
lending, securitization of insured residential first mortgage
products, consumer lending and credit card services. In addition,
Home Trust offers deposits via brokers and financial planners, and
through its direct to consumer deposit brand, Oaken Financial. Home
Trust also conducts business through its wholly owned subsidiary,
Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.