Proposed $26M CIBC settlement could soon put money in Canadians' pockets

Canadians could soon claim a part of a multimillion-dollar proposed CIBC mutual funds settlement.

Law firm Siskinds LLP announced on Friday that a $26-million settlement has been reached with CIBC and CIBC Trust Corporation to resolve a class action against various mutual fund trustees and managers, challenging the trailing commissions they have paid to discount brokers on mutual funds under their management.

Trailing commissions, also known as trailer fees, are compensation for mutual fund dealers who advise investors. However, over the years, these commissions were also paid to discount brokers, who are not allowed to provide investment advice.

"It is alleged by the plaintiffs that, since no advice is provided to investors who purchase mutual funds through discount brokers, these investors receive no value for the trailing commissions that reduce the value of their mutual fund investments," reads the class action.

This settlement is still subject to approval by the Ontario Superior Court of Justice. An approval hearing will be held on Nov. 5, 2025.

Who's eligible for the proposed CIBC mutual funds settlement?

According to Siskinds LLP, the class action is on behalf of all people, wherever they reside, who held or hold units of a CIBC Mutual Fund trust or a Renaissance Mutual Fund trust through a discount broker from Sept. 18, 2003, to Jan. 25, 2024.

If you want to object to the settlement, you'll need to do so by Oct. 15.

Class members who held units of a Renaissance mutual fund through a discount broker between the periods stated above, who do not want to be a part of the class action, must opt out by submitting a form by Oct. 27. This only applies to people who didn't also hold units of a CIBC mutual fund through a discount broker during that period.

Class members who held both types of mutual funds within that period had until May 26, 2024, to opt out.

For more information on the proposed settlement, check out the class action site.

Canadians who held units of a CIBC mutual fund or a Renaissance mutual fund, other than through a discount broker (for example, through an investment advisor), may be eligible for a separate settlement.

The claim submission period for the $8.5-million TD mutual funds settlement recently closed. A different $70.25-million TD mutual funds settlement is still accepting claims until Dec. 20, 2025.