Class action filed on behalf of investors in Scotia and Dynamic mutual funds regarding trailing commissions paid to discount brokers
June 28, 2018
Siskinds LLP and Bates Barristers P.C. have filed a proposed class action against 1832 Asset Management L.P. ("1832") regarding trailing commissions paid to discount brokers on Scotia and Dynamic mutual funds.
1832 is the trustee and manager of Scotia and Dynamic mutual funds. The action alleges that 1832 pays trailing commissions to discount brokers through which the Scotia and Dynamic mutual funds are sold, and investors who hold these funds in discount brokerages receive no value for the trailing commissions paid.
The action seeks to advance claims on behalf of all persons, wherever they may reside or be domiciled, who held or hold, at any time prior to the conclusion of the trial of the common issues in the proposed class action, units of a Scotia or Dynamic mutual fund trust through a discount broker.
This is the second proposed class action filed by Siskinds LLP and Bates Barristers P.C. relating to the practice of mutual fund managers paying trailing commissions in respect of mutual funds sold through the discount brokerage channel. A proposed class action has also been filed against TD Asset Management Inc., the trustee and manager of TD mutual funds.
The proposed class action against 1832 follows the recent announcement by securities regulators that they intend to introduce reforms to ban the payment of trailing commissions to discount brokers in connection with mutual fund sales. Consistent with the allegations in the proposed class actions, the securities regulators recently commented that there is "no justifiable rationale for the practice of paying discount brokerage dealers an ongoing trailing commission for the sale of a mutual fund."
Class Member Contacts:
If you hold or previously held units of a mutual fund that pays trailing commissions in a discount brokerage account, we encourage you to complete the information form on the website of Siskinds LLP at www.siskinds.com/mutual-fund-trailing-commissions/ by clicking on the "Receive Updates on this Case" link.
If you would like to contact Class Counsel, please direct your inquiries to Siskinds LLP at 1800-461-6166 x 4228 or firstname.lastname@example.org.