RRSP Class Action
| IMPORTANT NOTE:
This website has been developed to provide general information
to potential class members on a number of class actions that
have been commenced by Paliare Roland Rosenberg Rothstein LLP.
The site is not designed to answer questions about your individual
situation or entitlement. Do not rely upon the information
provided on this website as legal advice in respect of your
individual situation nor use it as a substitute for individual
legal advice.
The information collected about potential class members will
assist counsel in prosecuting the class action and assessing
what damages were suffered by the class as a whole. Providing
the information requested does not make you the client of Paliare
Roland Rosenberg Rothstein LLP. The court
will ultimately decide who will be included as a class member.
|
UPDATE
The defendants brought a motion to stay this action because another proposed class action is pending that alleges that BMO Nesbitt Burns has breached its agency agreements with its customers by charging undisclosed foreign currency conversion fees. On September 24, 2007, on consent, the Court ordered that this action will be held in abeyance until the certification motion in the other proceeding, “Skopit”, has been determined;. In the meantime, class counsel will proceed to prepare the action for certification and the anticipated common issues trial.
CASE SUMMARY
This proposed class action was commenced on August 2, 2006 and amended on March 6, 2007. It is brought on behalf of a proposed class of individuals with registered accounts administered by BMO Nesbitt Burns Inc., BMO Trust Company, BMO Bank of Montreal and BMO Investorline Inc. in respect of foreign exchange transactions in RRSP,
RRIF and RESP accounts.
The proposed class includes all present and former clients of
the defendants who held or hold RRSP(s), RRIF(s) or RESP(s) and
who, since June 14, 2001, have incurred foreign currency conversion
charges in these accounts.
The claim alleges that the defendants have systematically
converted foreign currency in these accounts to Canadian currency
without instructions from the customers, and without there being
any need to do so, based upon revisions to the Income Tax Act which
came into effect on June 14, 2001. Also, in effecting all currency
conversions, the defendants levy an undisclosed conversion fee in
addition to the amount that they actually pay to buy or sell currency. The
claim alleges that the defendants failed to change their operational
practices after the June 14, 2001 change to the Income Tax Act which
allows RRSPs, RRIFs and RESPs to hold foreign currency as an investment,
and further alleges that the reason for the defendants’ failure
to effect a change was so that they could continue to earn profits
from the foreign exchange fees, at the expense of the class members.
The claim seeks damages for all the fees charged in association
with the unauthorized conversion of foreign currency to Canadian
funds during the claim period. It also seeks repayment of all the
hidden foreign exchange fees levied by the defendants on transactions
where the customer did authorize a conversion of funds from Canadian
to a foreign currency; but had no notice and did not agree to payment
of the hidden fee. Each time a foreign exchange fee is
charged by the defendants it depletes the funds in the customer’s
retirement or education fund.
FOR MORE DETAILS:
Frequently Asked Questions
For further information on this class action, or if you have experienced
a similar problem with other financial institutions and would like
to speak to a lawyer, please contact us:
Paliare Roland Rosenberg Rothstein LLP
Attention: RRSP Class Action
250 University Avenue, Suite 501
Toronto ON, M5H 3E5
Toll Free: 1-888-569-4526
e-mail: info@rrspclassaction.com
