Three more bank mutual fund subsidiaries face potential class action cases
Bank towers are shown from Bay Street in Toronto's financial district, on Wednesday, June 16, 2010. (Adrien Veczan/THE CANADIAN PRESS)
TORONTO -- Subsidiaries of three more Canadian banks face potential class action lawsuits regarding trailing commissions paid to discount brokerages by mutual funds.
The actions allege the defendants paid trailing commissions to discount brokers that do not provide mutual fund investors with services of value, such as professional investment advice, in return for the fees.
The allegations have yet to be tested in court.
Siskinds LLP of London, Ont. and Bates Barristers PC announced Monday that their latest suits are against units of the Bank of Montreal, National Bank and Royal Bank.
The two law firms have now filed a total of seven cases that seek class action status to collect compensation on behalf of investors who owned the funds.
The firms filed previous suits last year against units of Toronto-Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Mackenzie, part of the Power Financial group.
The most recent cases have been filed on behalf of anybody who held units of a BMO, National Bank, or RBC/PH&N mutual fund through a discount broker.
Companies in this story: (TSX:RY, TSX:BMO, TSX:NA, TSX:BNS, TSX:CM, TSX:TD, TSX:LB, TSX:PWF)