More class action lawsuits filed against discount brokersBy The IJ Staff | February 05 2019 01:30PM
Siskinds LLP and Bates Barristers P.C. say three additional proposed class action lawsuits have been filed against financial services companies over the payment of trailing commissions to discount brokers.
The most recent lawsuits involve online/discount brokers RBC/PH&N, BMO and National Bank mutual funds.
The lawyers allege investors paid trailing commissions to discount brokers “through which the mutual funds were sold or held, and that these payments were improper because the investors in these mutual funds received no value (such as professional investment advice) for the trailing commissions paid.”
The lawsuits seek undisclosed compensation for the affected investors. The allegations have not yet been tested in court.
This brings the total number of class actions challenging the payment of trailing commissions to seven. Siskinds LLP and Bates Barristers P.C. previously filed proposed class actions regarding trailing commissions paid to online/discount brokers on TD, Scotia/Dynamic, CIBC and Mackenzie mutual funds.
The two law firms continue to evaluate potential claims on behalf of individuals who held or hold mutual funds through another discount broker.