Case name:
Group Registered Education Savings Plans (“RESP”) class action settlement with the following Defendants:
- Children’s Education Funds Inc. and Children’s Educational Foundation Canada
- Knowledge First Financial Inc. (personally and in continuance of proceedings for Heritage Education Funds Inc.) and Knowledge First Foundation
- Heritage Education Funds Inc. and Heritage Education Foundation
Quebec Superior Court file #:
500-06-000932-182
What this case was about:
The plaintiff sued six (6) Group RESP providers in Quebec, namely CST, Kaleido, Global, Children’s, Knowledge First and Heritage (the “Defendants“). Plaintiff alleges that the Defendants acted unlawfully by charging a fee exceeding $200 per plan for each Group RESP in contravention of section 1.1 (7) of Regulation No. 15 respecting Conditions Precedent to Acceptance of Scholarship or Educational Plan Prospectuses, RLRQ, c. V-1.1, r. 44. Plaintiff further alleged that for the individuals that cancelled their plans before maturity (i.e. the “Subclass Members“), the fees charged and forfeited in excess of 20% upon early termination of the are abusive under Quebec law.
On April 20, 2021, the Superior Court of Quebec authorized the Class Action against all of the Defendants (judgment accessible here).
A settlement has been reached with 3 groups of Defendants, namely Children’s, Knowledge First and Heritage, which will be presented for approval on August 29, 2025. A copy of the settlement and its summary are accessible below.
The class action is proceeding on the merits as against the other Defendants, namely CST, Kaleido and Global (you can follow updates concerning that case at www.lpclex.com/resp).
Settlement Class and Subclass Members:
Settlement Main Class (Children’s, Knowledge First and Heritage Settlement only):
All persons residing in Quebec who, at any time from July 19, 2013 to December 31, 2024, signed a contract with any of the Defendants in which they were a subscriber and/or contributor (either primary or joint) for a Registered Education Savings Plan (“RESP”), and who were charged a fee (referred to as “Enrolment Fee,” “Sales Charge” and/or “Membership Fee”), including the commissions of the distributor and its salesmen, exceeding $200.00 per plan.
Settlement Subclass (Children’s, Knowledge First and Heritage Settlement only):
All persons residing in Quebec: (1) who at any time from July 19, 2013 to December 31, 2024, signed a contract with any of the Defendants in which they were a subscriber and/or contributor (either primary or joint) for an RESP; (2) who cancelled their RESP after that date; and (3) lost more than 20% of their contributions on account of Enrolment Fees, Sales Charges or Membership Fees
Terms of the Settlement:
The Settlement provides for a settlement amount of $634,072.93. This amount, less court-approved fees and expenses, will be distributed to eligible Class and Subclass members in accordance with a plan of distribution, to be approved by the Court. If the settlement is approved, it will resolve all the Plaintiff’s claims against Children’s, Knowledge First and Heritage relating to this matter. For more details concerning the compensation amount and the distribution, please consult the Notice, the Settlement and the Distribution Protocol, all of which are accessible in the “Documents” section below.
The distribution process of the compensation will only commence if the Settlement is approved by the Court after the hearing on August 29, 2025. For any questions concerning the distribution process, we invite you to contact the Settlement Administrator appointed by the Court:
Concilia Services Inc.
1-888-770-6892
resp@conciliainc.com
Status:
On July 14, 2025, the Plaintiff and Children’s, Knowledge First and Heritage signed the Settlement Agreement. On July 21, 2025, the Superior Court of Quebec notably approved the pre-approval notices, modified the class descriptions and scheduled the Settlement approval hearing for August 29, 2025, at 9:15 a.m., in room 15.04. You may attend the hearing in-person or virtually via TEAMs by clicking here.
A copy of the settlement and judgment are accessible below.
Documents
