(Reuters) - BMO Capital Markets agreed to pay more than $40 million to settle U.S. Securities and Exchange Commission charges it failed to properly supervise employees who sold mortgage-backed bonds, the regulator said on Monday.

The payment includes disgorgement, prejudgment interest and a civil penalty, the SEC said. BMO did not admit or deny wrongdoing in agreeing to settle.

(Reporting by Jonathan Stempel in New York)