Eligibility for TD Mutual Fund Class-Action Settlement: Key Information
Canadians who invested in TD Mutual Funds may be eligible for compensation from a recent class-action settlement worth over $70 million. This agreement was sanctioned by the Ontario Superior Court of Justice to address allegations against TD Asset Management regarding unfair fees charged to investors.
Class-Action Lawsuit Against TD Asset Management
The lawsuit claimed that many investors were subjected to excessive fees for services that were not adequately rendered, particularly focusing on trailing commissions. These commissions are intended to compensate mutual fund dealers who provide financial advice.
Siskinds Law Firm, representing the plaintiffs, stated that discount brokers, which primarily operate online, do not offer investment advice. Therefore, investors using these brokers do not receive the anticipated value from the trailing commissions they pay.
Understanding Discount Brokers
Discount brokers allow clients to purchase investment products without offering personalized advice. Examples include:
- BMO InvestorLine
- TD Direct Investing
- RBC Direct Investing
- CIBC Investor’s Edge
- Scotia iTRADE
- National Bank Direct Brokerage
The class action contended that investors receive no benefit from trailing commissions when utilizing discount brokers, which lack the advisory elements provided by traditional financial advisors.
Eligibility for Settlement Compensation
Individuals who held investment products with TD Mutual Funds on or before September 11, 2024, may be eligible for a share of the settlement. To qualify, claimants must have used discount brokers, as described by Siskinds Law Firm.
Claims must be submitted along with relevant documentation to support the request for compensation. The total compensation will vary based on several factors, including the amount invested and the duration the products were held.
What Can Claimants Expect?
While it is challenging to predict the exact compensation amount, eligible claimants can expect a minimum payout of $25. The final distribution will depend on the total claims filed and the amount of trailing commissions attributed to each claimant.
Claimants must submit their claims by the deadline set for December 20, 2025. For further details and to file a claim, individuals should visit the settlement claims website administered for this case.
