Canadians can now claim part of a huge settlement over TD mutual funds.
Kalloghlian Myers LLP announced on Monday that the Ontario Superior Court of Justice approved a class-action settlement with TD Asset Management Inc. for $8.5 million.
“This settlement is not an admission of liability or wrongdoing by the Defendant. It is an efficient compromise between the parties of their disputed positions,” reads the notice.
The class actions alleged that the defendants’ payments of trailing commissions to mutual fund dealers were “improper” and caused investors to “suffer diminished returns on their mutual fund units,” according to the law firm.
Trailing commissions, or trailer fees, are compensation for mutual fund dealers who advise investors. Over the years, these commissions were also paid to discount brokers.
Who’s eligible for the TD settlement?
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The settlement will resolve the claims made on behalf of anyone (no matter where they live) who held or holds units of TD mutual fund trust at any time on or before Sept. 11, 2024.
Class members do not include investors who held mutual funds through a discount broker, as there’s a separate settlement for them, the law firm notes.
How do you claim the settlement?
If you meet the eligibility requirements and still own units of a TD mutual fund, you’re not required to submit a claim for compensation. The law firm says it will direct the defendant to deposit a portion of the net settlement amount into each TD mutual fund trust, so keep an eye on your bank account.
Class members who no longer hold any units of TD mutual fund should submit a claim by Aug. 28, 2025, to receive compensation.
What if you held units of mutual funds through a discount broker?
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A $70.5-million class-action settlement was reached with TD Asset Management last October.
This lawsuit was brought on behalf of Canadians who held TD mutual funds through discount brokers.
These discount brokers operate online, including on BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge, Scotia iTRADE, and National Bank Direct Brokerage.
With files from Irish Mae Silvestre
