U.S. investors now have the high court on their side when it comes to taking legal action against mutual fund companies that charge exhorbitantly high fees. See story
The U.S. Supreme Court has rejected a controversial lower ruling limiting investors' rights to sue mutual fund over the fees they charge. The high court ruled that the lower court ruling went too far in deciding mutual fund managers could not be liable for charging excessive fees unless there is fraud involved.
The latest ruling ordered a Chicago-based federal appeals court to take another look at a case where a group of investors alleged Harris Associates LP charged them excessively high fees for managing a family of Oakmark funds, compared with other clients.
The U.S. Securities and Exchange Commission called it "welcome news for mutual fund investors, who can continue challenging funds fees they believe to be excessive." See story
While there hasn't been similar anger among investors in Canada - at least that I can recall - such court decisions across the border will likely keep our domestic fund industry on its toes.