Hearings were held in Ontario and Quebec during which Class Counsel obtained court approval of a protocol for distributing the aggregate settlement funds, plus accrued interest, less a reserve fund, court approved legal fees and other expenses (the “Distribution Protocol”). The reserve fund will be held in a trust account for the benefit of Settlement Class Members. Class Counsel applied to and received approval from the Ontario and Quebec courts to have the reserve funds applied against future disbursements and/or adverse costs awards.
In August 2019, the Ontario and Quebec Courts approved amendments to the Distribution Protocol. Among other things, the amendments extended the claims deadline to January 15, 2020. The Ontario and Quebec Courts’ orders can be found on the Documents section of this website.
A copy of the Amended Distribution Protocol is also available on the Documents section of this website or from Class Counsel.
Although settlements have only been reached with certain Defendants, Settlement Class Members can make claims for transactions with any Defendant or other financial institution, provided they entered into an FX Instrument, either directly or indirectly through an intermediary, and/or purchased or otherwise participated in an investment or equity fund, mutual fund, hedge Fund, pension fund or any other investment vehicle that entered into an FX Instrument between January 1, 2003 and December 31, 2013.
Direct Claimants
Direct Claims will be advanced by Class Members against the Direct Claims Fund.
A Direct Claimant is not required to document their eligible transaction volume unless and until the Claims Administrator chooses to audit said claim.
The Claims Administration will undertake the following steps to value a claim, with assistance from the Consulting Expert as necessary:
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Analyze transaction volume based on information submitted by the Claimant;
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If any volumes submitted are rejected, send a deficiency notice to the Claimant and provide an opportunity to cure;
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Adjust the transaction volume to yield the Claimant’s Settlement Transaction Volume1;
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Adjust the Settlement Transaction Volume to yield the Eligible Participation Amount2; and
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Determine the damages calculation and the payment to the Claimant, having regard to any compensation received in other jurisdictions, including the U.S. Proceeding or private settlements.
Subject to further order of the courts, the settlement funds allocated to Direct Claimants will be distributed proportionally based on the value of an approved claim relative to the value of all approved claims. The value of a claim will depend on the quantum of the Eligible Participation Amounts. Trades between January 1, 2003 and November 30, 2007 will be discounted by 40%.
Indirect Claimants
Indirect Claims will be advanced by Class Members against the Indirect Claims Fund.
An Indirect Claimant is not required to document their holdings of Investment Vehicles available in Canada that entered into FX Instruments unless and until the Claims Administrator chooses to audit said claim. Upon auditing of any claim, the Claims Administrator has discretion to determine what documentation is sufficient for the purposes of establishing an Indirect Claimant’s holdings of Investment Vehicles. Such acceptable supporting documents may include, but are not limited to, the following: account statements, print outs of online account balances, trade confirmation reports, and any other document that shows the value of an Investment Vehicle.
The Claims Administrator will determine if the Indirect Claimant’s holdings are included on a list of Investment Vehicles available in Canada that entered into FX Instruments. Such list of Investment Vehicles will be posted online by the Claims Administrator. If the investment is not on the list, then the Claims Administrator will notify Class Counsel who will confirm the claims should be denied for that reason, or whether the investment should be added to the list.
Damages will only be paid out if the cumulative volume of investment is above a minimum threshold approved by the Courts. Trades between January 1, 2003 and November 30, 2007 will be discounted by 40%.
This FAQ only summarizes the Distribution Protocol. More information about the Distribution Protocol is available on this website. Questions about the Distribution Protocol or any other matters contained in this notice may be directed to Class Counsel:
1 Settlement Transaction Volume is the gross transaction volume in eligible instruments adjusted by Conversion Ratios that account for an instrument’s sensitivity to the spot rate.
2 Eligible Participation Amount is the Claimant’s Settlement Transaction Volume adjusted by Relative Damage Factors that account for two transaction characteristics that affect damages: currency pair traded and trade size.
