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DIY Investors Suing Over Trailing Commissions

A class-action lawsuit regarding trailing commissions paid to discount brokers on CIBC mutual funds has been proposed against the Canadian Imperial Bank of Commerce (CIBC) and CIBC Trust Corp. The lawsuit alleges investors who hold the mutual funds in discount brokerages receive no value for the trailing commissions paid. Class actions have also been launched against Scotiabank’s 1832 Asset Management LP as well as another against TD Asset Management Inc., the trustee and manager of TD mutual funds. None of the allegations in any of the proceedings have been proved in court.

September 20, 2018