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)