Mutual Fund Fees
Mutual funds pay trailing commissions (also known as trailing fees) to discount brokers. Trailing commissions are intended to compensate mutual fund dealers, such as discount brokers, for investment advice they provide to investors. However, discount brokers are prohibited from providing investment advice under the law. Since no advice is provided to investors who purchase mutual funds through discount brokers, these investors receive no value for the trailing commissions they pay. Quite simply, they are overcharged.
Siskinds LLP and Bates Barristers P.C. have filed proposed class actions against mutual fund trustees and managers challenging the trailing commissions they paid to discount brokers on mutual funds under their management. Discount Brokers operate online and include BMO Investorline, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge and Scotia iTrade. They are not allowed to provide investment advice.
Do you hold mutual funds in a discount brokerage account? Did you buy mutual funds through a discount broker? Do you pay trailing commissions for services you didn’t receive? We want to hear from you. Click the “Receive Updates on this Case” button below and complete the form to learn about our cases. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds LLP or Bates Barristers P.C., nor do you incur any obligations in connection with this lawsuit.
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