Royal Mutual Funds Inc., a subsidiary of Royal Bank of Canada, was successful in having a class action claim regarding enhanced compensation that was paid to a category of RBC financial advisors for a period of time dismissed. The plaintiffs allege that a commission compensation structure with different commission rates for different mutual fund products created a conflict of interest, in breach of the advisors’ fiduciary, equitable and contractual duties to their clients.
This matter attempted to re-define the duties owed by financial advisors in Canada, which would have a significant impact on the retail investment industry.
Tracey M. Cohen, Q.C., Andrew Borrell, and Maud Rozee were the lead members of the Fasken team that represented Royal Mutual Funds Inc.
Jurisdiction
- British Columbia
