Proposed class action lawsuit on trailing commissions filed against CIBC - NEWS 95.7
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Proposed class action lawsuit on trailing commissions filed against CIBC

Last Updated Sep 19, 2018 at 4:20 pm AST

A class action lawsuit regarding commissions paid to discount brokers on CIBC mutual funds has been proposed against the Canadian Imperial Bank of Commerce and CIBC Trust Corp. A CIBC sign is shown in the financial district in Toronto on Tuesday, August 22, 2017. THE CANADIAN PRESS/Nathan Denette

TORONTO – 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 and CIBC Trust Corp.

The lawsuit alleges investors who hold the mutual funds in discount brokerages receive no value for the trailing commissions paid. The allegations have not been proven in court.

The case filed by Siskinds LLP and Bates Barristers PC seeks compensation for those investors.

CIBC declined to comment as the matter is before the courts.

Siskinds and Bates Barristers have filed two other similar cases related to trailing commissions on mutual funds sold through the discount brokerage channel.

The firms have proposed a class action case against Scotiabank’s 1832 Asset Management LP as well as another against TD Asset Management Inc., the trustee and manager of TD mutual funds.

Companies in this story: (TSX:CM, TSX:BNS, TSX:TD)

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