The lawsuit alleged that CIBC and its asset management arm, CIBC Trust Corporation, paid ongoing fees known as trailing commissions to dealers and advisors. Plaintiffs claimed these payments were made to discount brokerages, which offer order-execution-only services without providing financial planning or advice. Consequently, the plaintiffs argued the fees were “excessive, inflated and/or unearned.” CIBC denies wrongdoing, and the settlement agreement explicitly states it is not an admission of liability.
According to calculations by plaintiffs’ counsel cited in industry reports, CIBC funds paid $105.9 million in trailing commissions to discount brokers between 2007 and 2022. Renaissance funds, a subsidiary of CIBC, paid an additional $17.8 million over the same period. These fees were deducted directly from fund assets, reducing returns for all investors in those funds, regardless of whether they used a discount brokerage or a full-service advisor.
The settlement covers investors who held units of CIBC or Renaissance mutual funds on or before September 5, 2025. Eligibility is limited to those who held funds outside of a discount brokerage account, such as through a bank branch or a full-service advisor. Investors who held these funds through discount brokers fall under a separate $26-million settlement, for which the claims window is managed independently.
Payment mechanisms differ based on the investor’s current status. Current holders of CIBC or Renaissance mutual funds will receive their share automatically, with funds deposited directly into their existing holdings. Former CIBC fund holders must file a claim online by the November 18, 2026 deadline to receive payment via cheque or electronic transfer. The plan of allocation indicates that eligible claimants may receive approximately $32, provided the settlement fund is sufficient to cover all valid claims.
Regulatory changes have since addressed the practice at issue. The Canadian Securities Administrators (CSA), the umbrella group for provincial and territorial securities regulators, banned trailing commissions to discount brokers effective June 1, 2022. Despite this regulatory shift, the litigation sought compensation for the period during which such payments were allegedly made. Investors holding both CIBC and Renaissance funds may be eligible for compensation from both portions of the settlement.
The deadline for former holders to submit their claims is November 18, 2026. Failure to file by this date will result in the forfeiture of the individual’s share of the $11-million settlement pool. Claims can be submitted through the designated class-action website.
