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.
- British Columbia