Last chance for Canadians to claim part of $8.5M TD settlement on Thursday
It’s the final day for Canadians to claim part of a huge TD mutual funds settlement.
The Ontario Superior Court of Justice approved a class-action settlement with TD Asset Management Inc. for $8.5 million in March.
“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 from law firm Kalloghlian Myers LLP.
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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Anyone (no matter where they live) who held or holds units of a TD mutual fund trust at any time on or before Sept. 11, 2024, is eligible to claim part of the settlement.
This does not include investors who held mutual funds through a discount broker, as there is a separate settlement for them.
How do you claim the settlement?
Canadians who are eligible for the settlement and still own units of a TD mutual fund aren’t required to submit a compensation claim. 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 a TD mutual fund will need to submit a claim form by Thursday, Aug. 28, 2025, if they want to cash in on this settlement.
What if you held units of mutual funds through a discount broker?
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A $70.25-million class-action settlement was reached with TD Asset Management last year.
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.
Eligible Canadians can now cash in on this settlement. The deadline to submit a claim is Dec. 20, 2025.
With files from Irish Mae Silvestre.
This article was originally published on Aug. 25, 2025. It has since been updated.