Royal Bank of Canada (RBC) has agreed to pay CAD21.8m ($16.7m) to customers as compensation for charging excess investment fees due to inadequate controls and supervision.

The compensation is part of a no-contest settlement agreed between the Ontario Securities Commission and RBC Dominion Securities, Royal Mutual Funds, and RBC Philips, Hager & North Investment Counsel.

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In addition, the RBC entities have also agreed to pay CAD925,000 to OSC to fund the mandate of protecting investors, and $50,000 for costs of the investigation.

RBC self-reported the matter and the regulator did not find the company to be involved in dishonest conduct in the matter.

RBC agreed to the settlement without admitting or denying the findings of the regulator.

OSC director of enforcement Jeff Kehoe said: “Our no-contest settlement program continues to deliver results. More than $340 million has been returned to investors since the inception of the no-contest settlement program, and we will continue to use this strong enforcement tool in appropriate cases that meet our strict criteria.”