TD Asset Management $70.25M Investor Settlement
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.
Frequently Asked Questions
All persons who held or hold units of a TD Mutual Fund through a discount broker at any time on or prior to September 11, 2024, and were damaged thereby, excluding the Defendant and other Excluded Persons.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.