Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceBankingRBC agrees to pay $45 million to settle trailer fee class actionA hearing will take place at the Ontario Superior Court of Justice on Sept. 8 to approve the settlementLast updated 13 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.The plaintiff alleged RBC's subsidiary improperly paid trailing commissions to discount brokers for services and advice that were never provided. Photo by Della Rollins/BloombergTwo Royal Bank of Canada subsidiaries have agreed to pay $45 million to settle a lawsuit that alleges some mutual fund investors paid fees they should not have been charged.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe class action settlement was reached with RBC Global Asset Management Inc. and RBC Investor Services Trust, Toronto-based law firm Siskinds LLP said in a notice on Tuesday.The case deals with commissions included in the fees charged by certain mutual funds that are paid to compensate dealers for the investment advice they provide.These commissions, however, were also paid to discount brokers that primarily operate online, such as RBC Direct Investing or CIBC Investor’s Edge, and are not allowed to provide investment advice, the notice said.Breaking business news, incisive views, must-reads and market signals. 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Please try againA discount broker provides only order execution services and is often referred to as a DIY broker, a court document related to the case that was filed on June 29 said.The plaintiff, Peter Ross, who started the legal action in December 2018, alleged RBC’s subsidiary improperly paid trailing commissions to discount brokers for services and advice that were never provided, according to the court document, which increased the management fees.RBC’s subsidiaries denied the allegations.Investors who can participate in this class action include those who held units of an RBC mutual fund or a PH&N mutual fund through a discount broker from Dec. 28, 2003, to July 25, 2024.A hearing will take place at the Ontario Superior Court of Justice on Sept. 8 to approve the settlement. The court will also consider a motion to approve the legal fees related to this case, which may not exceed $12.6 million.Siskinds has filed similar lawsuits against mutual fund trustees and managers of other banks and financial companies.For example, a settlement was reached with TD Asset Management Inc. for $70.25 million and approved by the court in 2024. A class action settlement was reached with Canadian Imperial Bank of Commerce for $26 million, which was approved through a court order last November. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.