TORONTO, June 21, 2012 /CNW/ - A class action has been certified by the Ontario Superior Court of Justice in a class action brought by James Richard MacDonald and others, against BMO Nesbitt Burns, BMO Investorline and BMO Trust Company ("BMO"). In the class action, the plaintiffs allege that BMO breached their contracts with the Class Members, and that BMO acted in breach of the trust and fiduciary duties that they owed to the Class by automatically converting to Canadian dollars any foreign currency that was paid into registered accounts, even though the Income Tax Act allowed foreign currency to be held in a registered account after June 14, 2001.
In particular, the claim alleges that BMO made unauthorized foreign currency exchanges, and that they charged undisclosed or inadequately disclosed and unauthorized fees in respect of foreign currency transactions. The plaintiffs seek, on behalf of the class, reimbursement of the foreign exchange fees charged on the purchase and sale of foreign investments held in registered accounts, and in respect of the conversion of foreign currencies that have been paid into the registered accounts.
None of the allegations has been proven in court, and the defendants deny liability.
The Class is comprised of all current and former clients of BMO InvestorLine Inc. ("InvestorLine") and BMO Nesbitt Burns Inc. ("BMO NB") resident in Canada, who held one or more registered accounts administered by BMO Trust, BMO NB and/or Investor Line Inc. (the "Registered Accounts") and purchased or sold investments denominated in foreign currency in their Registered Accounts or were paid dividends or interest in a foreign currency in their Registered Account(s), or otherwise received foreign currency into their Registered Account(s) which was then converted to Canadian dollars by the defendants during the period between: (i) June 14, 2001 and September 6, 2011 for all clients and former clients of InvestorLine and the 14 clients of BMO NB who opted out of the Skopit v. BMO Nesbitt Burns Inc. action and (ii) October 1, 2002 and September 6, 2011 for all other clients of BMO NB.
Further information regarding the class action is available on Class Counsel's website at http://www.paliareroland.com/rrsp.asp
For further information: