Canadians who held mutual funds with RBC through discount brokers could be getting some money back in their pockets if a proposed class-action settlement gets approved.

This comes after Canada’s largest commercial bank agreed to pay $45 million to settle a lawsuit alleging it charged unfair fees known as “trailing commissions” to its customers who held certain RBC mutual funds through discount brokers.

Details of the proposed class-action settlement were shared in a release Tuesday by the law firm Siskinds LLP, and it was originally brought forward by Peter Ross in 2018, who is the plaintiff.

Specifically, it was filed against two of RBC’s subsidiaries — RBC Global Asset Management Inc. and RBC Investor Services Trust — which are classified as defendants in the case.

The firm filed similar lawsuits against other Canadian commercial banks for similar claims, including a $70 million settlement with TD Bank in December.

The allegations in the class action focused on RBC’s trailing commissions, which were allegedly paid to discount brokers that did not provide investment advice.

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Discount brokers “are not allowed to provide investment advice,” the firm says, and that’s because discount brokers, generally, offer customers a do-it-yourself investment strategy and are not allowed to collect those fees.

“Since no advice is provided to investors who purchase mutual funds through discount brokers, these investors receive no value for the trailing commissions that reduce the value of their mutual fund investments,” said Siskinds LLP in a release.

The lawsuit alleges those trailing commissions were still paid to discount brokers by RBC and deducted from customers’ mutual funds, covering the period between Dec. 28, 2003, and July 25, 2024.

“The Defendants paid trailing commissions out of the assets of the RBC Mutual Funds and PH&N Mutual Funds to Discount Brokers, and that the Defendants breached their duties as trustees and fiduciaries because the trailing commissions paid to Discount Brokers were excessive, inflated and/or unearned,” the class action says.

The class action also states that RBC denied and continues to deny the allegations, and agreeing to the settlement is not an admission of liability, wrongdoing or fault.

By agreeing to the class-action settlement, including the proposed $45 million payout, RBC would resolve the litigation without a trial if approved by the court.

The settlement agreement is scheduled for review by an Ontario Superior Court on Sept. 8, 2026.

If the class action is approved, customers, or “class members,” may be entitled to receive compensation related to the trailing commissions.

According to the proposed settlement, class members are those who meet the following class definition:

“All persons, wherever they may reside or be domiciled, who held or hold, from Dec. 28, 2003 to July 25, 2024, units of an RBC Mutual Fund or a PH&N Mutual Fund through a Discount Broker, except for the Excluded Persons [the defendants, and those who opt out].”

Those who meet the class definitions are automatically considered class members, although it is not yet clear if any further action, including submitting a claim, is required to receive compensation.

Siskinds says a Distribution Protocol, which details who gets paid and how much they will receive, will be posted online by July 28, 2026, and class members can register for updates on the settlement by visiting the settlement claims website and filling in the required information.

Siskinds also says that anyone who believes they are a class member and wants to comment on or make an objection to the settlement agreement must file a written submission by Aug. 18, 2026.

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