Canadians who invested in CIBC and Renaissance mutual funds may be eligible to receive compensation through an $11-million class-action settlement approved by the Ontario Superior Court of Justice.
The settlement applies to people who currently hold or previously held units in one or both of the mutual funds. A mutual fund is a professionally managed investment fund that pools money from investors to purchase a mix of assets, including stocks and bonds.
What is the settlement about?
The lawsuit alleged that trailing commissions were paid to discount brokers out of management fees collected from the mutual funds.
Trailing commissions, sometimes called trailer fees, are fees paid to fund dealers who advise investors. They are paid out of the mutual fund’s pool.
However, the lawsuit alleged these fees were also paid to discount brokers, who are not permitted to provide investment advice.
The court notice states: “It is alleged that the Defendants breached its duties as a trustee and fiduciary because the trailing commissions paid to discount brokers are excessive, inflated and/or unearned.
“It is further alleged that the Defendants made misrepresentations about the nature of the trailing commission payments.”
The defendants, Canadian Imperial Bank of Commerce, CIBC Trust Corporation and CIBC Asset Management, denied the allegations. Their agreement to the settlement is not an admission of liability or wrongdoing.
Who is eligible for compensation?
To receive compensation, individuals must either currently hold CIBC mutual fund or Renaissance Fund units, or have previously held units on or before September 5, 2025 — provided those investments were not held through a discount broker.
How much will claimants receive?
According to court documents , 38.11 per cent of the $11 million settlement will be paid to current CIBC mutual fund holders, 59.05 per cent will be paid to former CIBC mutual fund holders, and 2.84 per cent will be paid to Renaissance fund holders.
Eligible claimants could receive $32 per claim.
Class Members who hold or held both CIBC and Renaissance mutual fund units may receive compensation for both of their holdings.
How do claimants submit a claim?
Current CIBC or Renaissance mutual fund holders don’t need to submit a claim. For these investors, compensation will be automatically deposited into the mutual fund in which they hold units.
Class members who previously held Renaissance mutual fund units will also see a portion of the settlement amount deposited directly into their existing Renaissance mutual funds.
However, those who previously held CIBC mutual fund units but no longer hold any must submit a claim form via the settlement website . The deadline for claims to be submitted is November 18, 2026.
Payments will be made by e-transfer or cheque.
Previously, a separate $26 million settlement was approved for people who held or hold units of a CIBC Mutual Fund trust or a Renaissance Mutual Fund trust through a discount broker from September 18, 2003, to January 25, 2024.
The deadline to file a claim for compensation in this settlement is October 21, 2026 and can be submitted via the settlement website .
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.
