CHARGED – Toronto Freezes Pension Transfers to Royal Bank
The city, with $116.3 million ($78.6 million) under management with RT Capital, froze the transfer of $6 million in pension funds. It followed the advice by Frank Russell Canada to stop placing new money with the company while the city pension fund committee decides whether to take legal action or pull its funds out of RT Capital, the Globe and Mail newspaper reported.
RT Capital manipulated the closing price of 26 stocks over eight days in late 1998 and early 1999 through a practice known as high-closing. The manipulation boosted Canadian equity portfolios by about 0.04 per cent over the two quarters in question. Unnamed sources told the Globe RT Capital’s practices would have resulted in all clients combined paying $6,700 in extra fees.
The Ontario Securities Commission and the Toronto Stock Exchange have begun proceedings against 22 individuals and RT Capital Management.