If you invest in mutual funds with RBC or PH&N Investment Services, you could be included in a class-action lawsuit.
On Wednesday, Toronto-based law firm Siskinds LLP announced that the Superior Court of Justice of Ontario had certified a class action against RBC Global Asset Management Inc. and RBC Investor Services Trust.
“It is alleged that the defendants paid excessive, inflated, and/or unearned trailing commissions to Discount Brokers out of the assets of the RBC and PH&N Mutual Fund trusts,” reads the announcement.
According to Siskinds, trailer commissions (also known as trailer fees) paid on mutual funds are intended to compensate mutual fund dealers for investment advice they provide to investors.
Those commissions are also paid to discount brokers, who primarily operate online and 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.
The allegations made in the class action haven’t been proven and are contested by RBC and PH&N.
T. Schneider Related searches/Shutterstock
Who’s eligible for this class action against RBC and PH&N?
Siskinds says that any customer, whether they live in Canada or elsewhere, who held or currently holds units of an RBC or PH&N mutual fund trust through a discount broker any time before the conclusion of the trial is part of the class action.
The lawsuit seeks monetary damages on behalf of the class; however, no specifics yet exist as to how much Canadians could get if there is a settlement.
You don’t have to do anything if you want to be included in the class action. You can get updates on the case if you fill out a form here.
If you don’t want to participate in the class action or receive any benefits from it, you have to opt out by sending the necessary form to RicePoint Administration Inc. by November 12, 2024.
You can get that form here or call toll-free at 1-800-461-6166 ext. 1615 (North America) and 416-594-4390 (outside North America).
If you’re looking for class-action settlements that you might be eligible for, read this.