TORONTO, Jan. 17, 2020 /CNW/ - Koskie Minsky LLP has commenced a class proceeding concerning the payment of trailing commissions to Canadian online trading brokers.
The defendants, Canadian discount brokerages, operate online investment platforms, and sell mutual fund products to investors. Trailing commissions are paid to the defendants by companies that manage and operate mutual funds, and are paid out of the value of an investor's investments.
It is alleged that trailing commissions are designed to compensate the broker for advice and services that the broker has provided to the investment client. However, discount brokers cannot and do not provide advice or services to investors. It is alleged that these commissions are inappropriate and unlawful and that these funds should be returned to investors.
The class action is brought on behalf of all persons who purchased mutual funds through a Canadian defendant discount brokerage.
Kirk Baert, a partner at Koskie Minsky, stated "Improper investment commissions whittle away the retirement savings of ordinary Canadians. The practice of collecting trailing commissions for no reason must stop".
SOURCE Koskie Minsky LLP
For further information: Demi Cartwright at Koskie Minsky LLP at: 416-595-2266