TORONTO, April 19, 2017 /CNW/ - Home Capital Group Inc.
(the "Company", TSX: HCG) made the following statement after
receiving notification that staff of the Ontario Securities
Commission (OSC) intend to pursue an administrative proceeding
against the Company and three individuals:
Home Capital Group has always carefully considered its
disclosure obligations. The Company believes that its
disclosure satisfied applicable disclosure requirements, and the
allegations are without merit. The allegations will be vigorously
defended.
"Home Capital remains focused on serving our customers, carrying
on our business and executing on our strategy of creating prudent,
profitable growth," said Kevin P.D.
Smith, chair of the Home Capital board of directors. "Home
Capital has made significant progress in strengthening an already
solid business, and we are confident in our prospects. We will
share our accomplishments when we report our first-quarter results
on May 3."
"Because this is a regulatory matter, we will not be commenting
further on the OSC proceeding at this time," Mr. Smith added.
Background
On February 10, 2017, the Company
disclosed it had received an enforcement notice from staff of the
Ontario Securities Commission relating to the Company's disclosure
in 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 brokers and brokerages.
Earlier this afternoon, staff of the OSC issued a statement of
Allegations and a Notice of Hearing relating to that disclosure,
against the Company and three current and former officers and
directors of the Company: Martin K.
Reid, the Company's former President and Chief Executive
Officer; Gerald M. Soloway, the
Company's former President and Chief Executive Officer and
currently a director of the Company; and Robert Morton, the Company's Chief Financial
Officer.
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.