A significant sum – $70.25 million – is awaiting claim by eligible Canadians, a result of a class-action settlement concerning TD mutual funds. The deadline to participate is fast approaching, and many investors may be unaware they have a right to a portion of this substantial fund.
The core of the case revolves around trailing commissions, payments made to financial dealers for ongoing service related to mutual fund investments. The lawsuit alleged that these commissions were also directed to discount brokers, even though those brokers provided no advice to investors – essentially, investors were paying for a service they didn’t receive.
Mutual funds, in essence, are pooled investments managed by professionals aiming to generate returns for their investors. However, the plaintiffs argued that the undisclosed commissions eroded the value of those returns for individuals using discount brokerage platforms.
A settlement was reached in October and subsequently approved by the Ontario Superior Court of Justice in December. This legal victory now translates into a potential financial benefit for a wide range of Canadian investors.
Are you eligible? The criteria are straightforward: if you held TD mutual fund trusts through any of the major discount brokers – including BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge, Scotia iTRADE, or National Bank Direct Brokerage – at any point on or before September 11, 2024, you likely qualify.
This isn’t about large, active trading accounts; even small or past holdings could entitle you to a claim. The funds are intended to compensate those who unknowingly bore the cost of unreceived advisory services.
The final date to submit your claim is December 20th. Don't miss this opportunity to potentially recover funds that were improperly deducted from your investments.
