If you have invested in CIBC mutual funds, you may qualify for a share of an $11-million settlement, with the application deadline approaching quickly.
Individuals who owned units in a CIBC mutual fund or a Renaissance mutual fund as of September 5, 2025, are eligible for compensation, excluding those who held these funds through discount brokers. (Renaissance Investments operates as a subsidiary of CIBC.)
The class-action lawsuit claims that trailing commissions were improperly disbursed to discount brokers, such as Scotia iTRADE or Wealthsimple, which allow investors to make trades but typically do not offer personalized financial advice.
Trailing commissions serve as compensation for mutual fund dealers or advisors for their guidance. The lawsuit contends that since discount brokers do not provide advice, the fees are deemed “excessive, inflated, and/or unearned.”
Additionally, it is claimed that CIBC was using its mutual fund assets to pay these trailing commissions. The settlement does not represent an admission of wrongdoing by CIBC or the CIBC Trust Corporation, which is also named in the lawsuit.
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Eligible individuals who currently possess CIBC or Renaissance mutual funds will be automatically refunded their share of the settlement, with no claim needed. The settlement amount will be directly credited to their existing mutual funds.
However, individuals who previously held CIBC mutual funds must submit a claim form by November 18 to qualify. This can be completed online at the class-action website.
Those who have owned both CIBC and Renaissance mutual funds may be eligible for compensation for both claims, according to the class-action website.
While it remains uncertain how much claimants may receive from the settlement, the allocation plan indicates the potential amount could be approximately $32, provided there are sufficient funds to compensate all eligible claimants.