Deadline to make a claim in a CIBC class action settlement is days away

Résumé détaillé

Time is running out for those who qualify to submit a claim for compensation from an $11 million CIBC class-action settlement involving mutual fund commissions.

Time is running out for those who qualify to submit a claim for compensation from an $11 million CIBC class-action settlement involving mutual fund commissions paid to discount brokers.

Eligible claims need to be submitted by Nov. 18, 2026 to qualify for compensation.

The lawsuit alleged CIBC and Renaissance mutual funds paid trailing commissions to discount brokers that were “excessive, inflated and/or unearned,” as these brokers generally do not provide personalized investment advice – the service those fees are typically intended to compensate.

CIBC and its affiliates denied wrongdoing, and a settlement agreement is not necessarily an admission otherwise. Usually, a settlement agreement happens when legal parties negotiate satisfactory terms that avoids the need to fight the lawsuit in court.

Examples of discount brokers, according to the settlement website, are BMO InvestorLine, CIBC Investor’s Edge, National Bank Direct Brokerage, RBC Direct Investing, Scotia iTRADE, TD Direct Investing, CI Direct Trading, Qtrade, Desjardins Online Brokerage, HSBC InvestDirect, Laurentian Bank Discount Brokerage, Wealthsimple, Questrade, and Interactive Brokers. They may have had different names in the past.

CIBC and its asset management arm was allegedly using money from mutual fund assets to pay these trailing commissions to discount brokers.

This would be a normal practice provided the brokers were giving clients a service of personalized and sometimes ongoing investment advice and services, but the settlement documents say these brokers typically provide “order-execution only services.”

A similar class-action settlement involving trailing commissions involved TD last year.

Investors who qualify for a payout generally would have held, or are still holding eligible mutual funds outside of discount brokerage accounts, such as through bank branches or full-service advisors, starting up to or before Sept. 5, 2025.

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