Trailer Fee Class Actions Allowed to Proceed
Proposed class action lawsuits against fund managers over trailing commissions to discount brokers can proceed, an Ontario court has ruled.
A trio of firms - BMO Investments Inc., Natcan Trust Co. and National Bank Investments Inc. - appealed a lower court ruling, which rejected their motions to dismiss new trailer fee class actions.
The firms were targeted by proposed class actions filed in 2018 over trailer fee payments to discount brokers.
The Ontario court upheld a lower court decision, allowing the lawsuits to proceed.
Author's summary: Lawsuits against fund managers proceed.