Last chance for Canadians to cash in on $70M TD settlement

Canadians have one more week to claim a part of a massive class-action settlement involving TD mutual funds.

A settlement was reached with TD Asset Management Inc. for $70.25 million to resolve claims that the financial institution paid trailing commissions (or trailer fees) to discount brokers of mutual funds.

According to TD, mutual funds are a type of investment where "the money collected from various investors is pooled together to invest in different assets, including bonds, stocks, and/or money market investments." Mutual funds are managed by fund managers who allocate the fund's assets to produce higher returns for investors.

Trailing commissions paid on mutual funds compensate mutual fund dealers who advise investors. However, over the years, these trailer fees were also allegedly paid to discount brokers.

Discount brokers mainly operate online and include BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor's Edge, Scotia iTRADE and National Bank Direct Brokerage. According to the class-action lawsuit, they are not allowed to provide investment advice.

The settlement was reached in October 2024 and was approved by the Ontario Superior Court of Justice in December that year.

"It is alleged by the plaintiffs that, since no advice is provided to investors who purchase mutual funds through discount brokers, these investors receive no value for the trailing commissions that reduce the value of their mutual fund investments," reads the class action.

Who's eligible to cash in on the TD settlement?

The settlement was reached on behalf of anyone (no matter where they live) who held or hold units of a TD mutual fund trust through a discount broker at any time on or before Sept. 11, 2024.

Discount brokers include BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor's Edge, Scotia iTRADE and National Bank Direct Brokerage.

If you think you're eligible, you'll need to submit a claim form to the administrator online by this Saturday, Dec. 20, 2025.

The claim site notes that some people may have received multiple emails or mail notifications about the claims filing process.

"This occurs in situations where a class member has multiple accounts with TD Direct Investing and the details for those accounts are not identical (e.g. different names, additional account holders, differing mailing addresses, etc.)," it reads.

This settlement is strictly for Canadians who held units of a TD mutual fund trust through a discount broker.

If you held units other than through an investment advisor, for example, there was a separate $8.5-million settlement that closed its claim deadline in August.

This isn't the only settlement deadline approaching. The Loblaw bread price-fixing deadline is also nearing, so don't forget to submit a claim if you're eligible.