CIBC mutual fund settlement deadline for claims is Nov. 18

Time is running out for former CIBC mutual fund holders to submit a claim for compensation from an $11 million class action settlement. Eligible claims must be filed by Nov. 18, 2026, to qualify for a payout. The settlement resolves allegations that CIBC and Renaissance mutual funds paid excessive trailing commissions to discount brokers. CIBC and its affiliates have denied any wrongdoing, and the settlement is not an admission of liability.

The lawsuit alleged that the mutual funds paid commissions to discount brokers that were "excessive, inflated and/or unearned." It argued these fees are typically intended to compensate for personalized investment advice, a service that discount brokers generally do not provide. The settlement documents state these brokers typically provide "order-execution only services." Examples of discount brokers listed include BMO InvestorLine, RBC Direct Investing, Scotia iTRADE, TD Direct Investing, Questrade and Wealthsimple.

Current mutual fund holders through CIBC and current or former Renaissance fund holders will be compensated automatically without needing to file a claim. Their compensation will be deposited through their respective mutual funds. However, former CIBC mutual fund holders who no longer have those investments with the firm must file a claim by the deadline to receive compensation. Those eligible claims will be paid by cheque or e-transfer. The total settlement amount is about $11 million, but the final sum distributed to claimants will be lower after legal fees, administrative expenses and other costs are deducted. The number of potential claimants has not been disclosed, so the exact value of individual claims is unclear. A plan of allocation document suggests each eligible claim could be entitled to about $32.

"If the Net Former Holder CIBC Fund is sufficient to make payment of $32.00 to each eligible Claimant, the Administrator shall issue payment of $32.00 by e-transfer or cheque to each eligible Claimant," the document says.

If the available funds are insufficient to pay $32 to each claimant, the payments will be pro rated to a lower amount. The document states, "If the Net Former CIBC Holder Fund is insufficient to make payment of $32.00 to each eligible Claimant, the Administrator shall calculate each Former CIBC Holder's payment by pro rating the Net Former CIBC Holder Fund between each eligible Claimant." Investors who believe they may be entitled to compensation can file a claim online before the deadline. Investors eligible for a payout generally would have held, or still hold, eligible mutual funds outside of discount brokerage accounts. This includes holdings through bank branches or full-service advisors. The settlement involves mutual fund holdings up to or before Sept. 5, 2025. A similar class action settlement involving trailing commissions was reached with TD last year.

With files from Global News