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Home Capital Group Inc.

Exchange: TSX Exchange | Apr 28, 2017, 4:15 AM EDT

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Home Capital Group Makes Statement on OSC Administrative Proceeding Against the Company and Three Individuals
Home Capital Group Makes Statement on OSC Administrative Proceeding Against the Company and Three Individuals

Canada NewsWire

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.

View original content: http://www.newswire.ca/en/releases/archive/April2017/19/c3967.html

Media: Boyd Erman, Longview Communications Inc., (416) 649-8007, berman@longviewcomms.ca; Investors: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652, laura.lepore@hometrust.caCopyright CNW Group 2017

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