Canadians will soon be able to cash in $8.5 million TD investment fund deal

On November 2, 2024By Karl

Canadians may soon demand part of the proposed deal on TD mutual funds.
TD Asset Management Inc., Kalloghlian Myers LLP announced Friday. announced that a class action settlement of $8.5 million was reached with.

The class-action lawsuits allege that the defendants’ subsequent commission payments to underwriters in mutual funds were “improper” and resulted in investors’ “reduced returns on mutual fund units.” According to the law firm.

Accordingly tank destroyerMutual funds are a type of investment in which “money collected from various investors is pooled to invest in different assets, including bonds, stocks, and/or money market investments.” Mutual funds are managed by fund managers who allocate fund assets to provide higher returns to investors.

Trailing commissions, or trailing fees, are compensation for mutual fund salesmen who make recommendations to investors. Over the years, these commissions were also paid to discount brokers.

Who can benefit from the proposed solution?

The proposed settlement would resolve claims made on behalf of any person (regardless of where they live) who owned or held a TD investment fund trust at any time on or before September 11, 2024.

The law firm notes that class members do not include investors who held mutual funds through a discount broker.

The deal is still subject to approval by the Ontario Superior Court of Justice. The hearing was postponed to January 23, 2025.

If you want to object to the TD mutual fund settlement, attorneys’ fees and expenses, honorarium payment, or the distribution protocol that determines how settlement funds will be distributed among group members, the law firm recommends you do so by December 23.

If you don’t want to be part of the class-action lawsuit and be bound by the terms of the settlement, the law firm says you have to opt-out by submitting a form by December 31.

More information about the agreement and waiver form can be found here or by calling the class advisor at 647-969-4472.

What if you hold TD mutual fund units through a discount broker?

A $70.5 million class action settlement was reached with TD Asset Management in October.

This lawsuit was brought on behalf of Canadians who held TD mutual funds through discount brokers.

These discount brokers operate online, including BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge, Scotia iTRADE and National Bank Direct Brokerage.