If you have invested in CIBC mutual funds, you might qualify for a share of an $11-million settlement, with the application deadline approaching quickly.
Individuals who owned units of either a CIBC mutual fund or a Renaissance mutual fund before September 5, 2025, may be eligible for reimbursement, with the exception of those who purchased the funds through a discount brokerage. (Renaissance Investments operates as a subsidiary of CIBC.)
The class-action lawsuit claims that trailing commissions were improperly distributed to discount brokers, such as Scotia iTRADE or Wealthsimple, which facilitate trades for investors but typically do not offer personalized financial advice.
Trailing commissions are payments made to mutual fund dealers or advisors in return for their guidance. The lawsuit contends that, since discount brokers do not provide such advice, the associated fees are “excessive, inflated and/or unearned.”
Additionally, CIBC is accused of using its mutual fund assets to pay these trailing commissions. It is important to note that the settlement does not imply guilt on the part of CIBC or the CIBC Trust Corporation, which is also named in the lawsuit.
Go Public has heard from dozens of bank fraud victims who question why banks aren’t held liable for fraud losses. The government says it’s consulting, but won’t commit to holding banks financially responsible — as happens in some other countries.
For those eligible for the settlement who currently possess CIBC or Renaissance mutual funds, refunds will be processed automatically, with their portion of the settlement added directly to their existing mutual funds without the need for any claim submission.
However, individuals who previously held CIBC mutual funds must complete a claim form by November 18 to qualify for reimbursement. This can be submitted online via the class-action website.
Claimants who owned both CIBC mutual funds and Renaissance mutual funds may be eligible for compensation from both claims, according to the class-action website.
The exact compensation amount for claimants from the settlement remains uncertain, but the allocation plan suggests it could approximate $32, provided there are sufficient funds available to cover all eligible claimants.