TD Asset Management $70.25M Investor Settlement

Late claims are being considered for compensation, subject to approval.

$70,250,000

Cash Settlement

CV-18-595380-00CP

Case number

11/01/2002

Class period Start

05/31/2022

Class period End

12/20/2025

Claim deadline

TD Asset Management has agreed to settle CAD $70.25 million with investors in Canada to resolve claims that it improperly used fund assets to pay trailing commissions to discount brokers.

Outline:

TD Asset Management paid trailing commissions from certain mutual fund assets to discount brokers. Investors later alleged those brokers did not provide the investment advice typically associated with those fees. The payments affected investors who held certain TD Mutual Funds through discount brokerage platforms. TD Asset Management later agreed to a CAD $70.25 million settlement to resolve the claims.

Timeline:
2017–2024: TD Asset Management paid trailing commissions to discount brokers on certain TD Mutual Funds.
October 5, 2023: TD agreed to a national class settlement with affected investors.
June 6, 2024: The Ontario Superior Court approved the CAD $70.25 million settlement.
Background:

TD Asset Management manages a range of TD Mutual Funds offered to retail investors in Canada. Some of these funds included series that paid trailing commissions, which are fees typically intended to compensate financial advisors for providing ongoing investment guidance.

Investors alleged that these trailing commissions were also paid to discount brokers such as TD Direct Investing. These platforms allow investors to purchase funds without receiving investment advice from an advisor.

According to the claims, investors who held certain mutual fund series through discount brokers still paid trailing commission fees from fund assets even though no advisory services were provided. These payments allegedly reduced the net asset value of the affected funds.

The settlement covers investors who held certain TD Mutual Funds through discount brokerage platforms between 2017 and 2024. TD denied wrongdoing but agreed to a CAD $70.25 million settlement to resolve the claims.

What Can Investors Expect Now?

TD Asset Management agreed to a CAD $70.25 million settlement with investors to resolve claims that it improperly paid trailing commissions to discount brokers using mutual fund assets.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

Canadian Securities Class Action

Case Status

Accepting Late Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Breach of Fiduciary duty

Suspected Party

Management,

Investment Bank

Security Type

Other

Trade Direction

Long

Plaintiffs

Peter Westwood

Attorneys

Siskinds LLP

Defendants

TD Asset Management

Judge

J.T. Akbarali

Administrator

Verita Global

Trades matching type

FIFO

Frequently Asked Questions

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