Canadians who invested in CIBC and Renaissance mutual funds may be eligible to receive compensation through an $11-million class-action settlement approved by the Ontario Superior Court of Justice. The lawsuit alleged that excessive, inflated, and unearned trailing commissions were paid to discount brokers who are not permitted to provide investment advice.
What is the Settlement About?
The lawsuit claimed that trailing commissions, also known as trailer fees, were paid to discount brokers out of management fees collected from the mutual funds. Trailer fees are typically paid to fund dealers who advise investors, but discount brokers are not allowed to give such advice. The court notice states that the defendants breached their duties as trustees and fiduciaries because the trailing commissions paid to discount brokers were excessive, inflated, or unearned. It also alleged misrepresentations about the nature of these payments. The defendants—Canadian Imperial Bank of Commerce, CIBC Trust Corporation, and CIBC Asset Management—denied all allegations and their agreement to the settlement is not an admission of liability.
Who is Eligible for Compensation?
Eligibility extends to individuals who currently hold or previously held units in CIBC mutual funds or Renaissance Funds on or before September 5, 2025, provided those investments were not held through a discount broker. Class members who hold or held both types of funds may receive compensation for both holdings.
How Much Will Claimants Receive?
According to court documents, 38.11% of the $11 million settlement will go to current CIBC mutual fund holders, 59.05% to former CIBC mutual fund holders, and 2.84% to Renaissance fund holders. Eligible claimants could receive approximately $32 per claim.
How to Submit a Claim
Current CIBC or Renaissance mutual fund holders do not need to submit a claim; compensation will be automatically deposited into their fund. Former Renaissance fund holders with existing accounts will also see direct deposits. However, those who previously held CIBC mutual fund units but no longer hold any must submit a claim form via the settlement website by November 18, 2026. Payments will be made by e-transfer or cheque.
