Mutual Fund Fees

Active Action

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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Developments

In April 2018, Siskinds LLP and Bates Barristers P.C. filed a proposed class action against TD Asset Management Inc. (the "TD Action") regarding trailing commissions paid to discount brokers on TD mutual funds. The action claims damages of $200 million and other relief. The action is in the pre-certification stage of the litigation.

In the TD Action, the proposed class is "all persons, wherever they may reside or be domiciled, who held or hold, at any time prior to the conclusion of the trial of the common issues in this proceeding, units of a TD Mutual Fund through a Discount Broker, except for the Excluded Persons".

In June 2018, Siskinds LLP and Bates Barristers P.C. filed a proposed class action against 1832 Asset Management L.P. (the "Scotia Action") regarding trailing commissions paid to discount brokers on Scotia mutual funds and Dynamic mutual funds. The action claims $200 million and other relief. The action is in the pre-certification stage of the litigation.

In the Scotia Action, the proposed class is "all persons, wherever they may reside or be domiciled, who held or hold, at any time prior to the conclusion of the trial of the common issues in this proceeding, units of a 1832 Mutual Fund through a Discount Broker, except for the Excluded Persons".

In September 2018,  Siskinds LLP and Bates Barristers P.C. filed a proposed class action against the CIBC Trust Corporation and CIBC (the "CIBC Action") regarding trailing commissions paid to discount brokers on CIBC mutual funds. The action claims $200 million and other relief. The action is in the pre-certification stage of the litigation.

In the CIBC Action, the proposed class is "all persons, wherever they may reside or be domiciled, who held or hold, at any time prior to the conclusion of the trial of the common issues in the proposed class action, units of a CIBC mutual fund trust through a discount broker, except for the Excluded Persons".