Discount Broker Trailing Commission Class Action


Investigation Counsel PC, along with co-counsel Koskie Minsky LLP and Paul Bates, Barrister, have brought a class proceeding concerning the payment of trailing commissions to Canadian discount brokers, also known as online brokers or order-execution-only brokers.

The defendants, Canadian discount brokers, operate online investment platforms, and sell mutual fund products to investors.  Trailing commissions are paid to these discount brokers by companies that manage and operate mutual funds, and are paid out of the value of an investor’s mutual fund investments. 

It is alleged that trailing commissions are designed to compensate a broker for advice and related services that the broker has provided to the investment client. However, discount brokers cannot and do not provide advice or services to investors, and in fact are prohibited from doing so under applicable regulations in Canada.

It is alleged that the trailing commissions received and retained by discount brokers are inappropriate and unlawful and that these funds should be returned to investors.

The class action is brought on behalf of all persons who held mutual funds in their accounts with any discount broker in Canada.

Inquiries regarding this class action can be directed to Investigation Counsel at 1-800-887-5611 or jarchibald@investigationcounsel.com

 

In order for Investigation Counsel PC to notify you of important developments in this action when permitted or required to do so by the Court, please fill out the Contact Form below.

* This Is Not A Claim Form You are not obligated to fill in this form and, if you choose to do so, you are not retaining Investigation Counsel P.C. to act on your behalf. Your personal information will not be disclosed to a third party without your consent or unless it is required by law.
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