The deadline is approaching for eligible individuals to file for compensation under an $11 million CIBC class-action settlement related to mutual fund commissions paid to discount brokers.
Canadians who owned units of a CIBC or Renaissance mutual fund on or before Sept. 5, 2025, but no longer hold them and didn’t use a discount broker, must file a claim by Nov. 18 to be compensated, according to a class-action notice.
The case alleged that CIBC paid discount brokers “excessive” trailing commissions. Trailing commissions compensate mutual fund dealers or advisers for the advice they provide, but the class action alleged that, because discount brokers offer no advice, the fees were “inflated” and “unearned.”
CIBC was also accused of paying those trailing commissions using money from its mutual fund assets.
An Ontario court approved an $11-million settlement last December, ending the class-action proceedings.
CIBC and the CIBC Trust Corporation—CIBC’s asset management arm that is also named in the lawsuit—have denied claims of wrongdoing. The court documents indicated that “the settlement agreement is not an admission of liability, wrongdoing, or fault.”
Eligible holders of CIBC or Renaissance mutual funds will receive their share of the settlement automatically, with no claim required. The refund will be deposited into their existing mutual funds.
Former CIBC mutual fund holders will need to submit a claim to receive payment, however.
The class-action site says investors who held CIBC mutual funds as well as Renaissance mutual funds could receive compensation for both claims.
How Much Will the Compensation Be?
Although the settlement amount is $11 million, the funds distributed to eligible claimants will be calculated after related legal fees, administrative expenses, and other costs are deducted, the notice said.
Kalloghlian Myers LLP, the Toronto law firm that managed the class action, is set to receive more than $3.6 million in legal fees under the settlement.
Claimants who qualify for compensation can expect to receive approximately $32, but the final amount may change based on the total number of eligible payments, according to a plan of allocation.
Payments on eligible claims may be less than $32 if there are insufficient funds to cover the full amount.
Claims can be filed online through the class-action website.
