Quick Read
- TD Asset Management reached a $70.25-million settlement over trailing commission payments to discount brokers.
- Eligible Canadians must claim by December 20, 2025, if they held TD mutual funds through a discount broker before September 11, 2024.
- The settlement was approved by the Ontario Superior Court of Justice in December 2024.
- Claims are submitted online at trailingcommissionssettlement.ca.
- Major discount brokers involved include BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge, Scotia iTRADE, and National Bank Direct Brokerage.
Understanding the Settlement: What Sparked the $70 Million TD Mutual Funds Case?
In the world of personal finance, few stories make as many ripples as a major class action settlement. This year, thousands of Canadians are facing a critical deadline: December 20, 2025, marks the last day to claim their share of a $70.25-million settlement involving TD Asset Management and mutual fund investors. But how did we get here, and what does it mean for ordinary investors?
The case centers on trailing commissions—fees paid by mutual fund companies to brokers for ongoing service. These payments are common in the industry and are intended to compensate financial advisors for support and advice. However, the lawsuit, launched by Siskinds Law Firm, alleged that TD Asset Management paid these trailing commissions not only to traditional advisors but also to discount brokers—platforms like BMO InvestorLine, TD Direct Investing, RBC Direct Investing, CIBC Investor’s Edge, Scotia iTRADE, and National Bank Direct Brokerage. Unlike full-service brokers, discount brokers typically do not provide investment advice.
The heart of the issue: Plaintiffs argued that investors who bought TD mutual funds through discount brokers received no advice, but still saw trailing commissions deducted from their investments. As a result, the value of their mutual fund holdings was reduced—without any added benefit. This sparked a wave of concern about transparency and fairness in Canada’s investment landscape.
Who Is Eligible—and What Do You Need to Know?
If you’re a Canadian who held TD mutual fund trusts through a discount broker at any time on or before September 11, 2024, you are eligible to make a claim. This includes current and former investors, regardless of the size of their holdings. The settlement covers accounts managed by the major discount brokerages mentioned earlier.
Claims must be submitted online at trailingcommissionssettlement.ca by Saturday, December 20, 2025. The process is designed to be straightforward: eligible investors simply need to provide documentation proving their holdings during the relevant period. The total amount each claimant will receive depends on the number of valid claims and the extent of their investments, but the overall fund—$70.25 million—is set and will be distributed among all approved applicants.
What Does the Settlement Mean for Canadian Investors?
The TD mutual funds settlement is more than just a financial windfall for affected investors. It represents a pivotal moment in how investment fees are handled, especially in the discount brokerage space. For years, trailing commissions have been a controversial topic in Canada. Critics argue that these fees often lack transparency and can erode investment returns—especially when paid to brokers who provide little or no service.
By resolving the lawsuit and agreeing to the settlement, TD Asset Management has taken a step towards addressing these concerns. The company has not admitted wrongdoing but has agreed to compensate investors who may have been impacted by trailing commission payments to discount brokers. For many, this signals a move towards greater accountability and transparency in the financial services industry.
Looking Forward: Will This Change How Mutual Funds Are Sold?
This class action may have ripple effects beyond TD Asset Management. The case has drawn attention to the broader practice of paying trailing commissions to discount brokers, prompting regulators and industry leaders to reconsider how mutual funds are distributed and how investors are compensated. While the settlement applies specifically to TD mutual funds, it underscores the need for investors to understand exactly what fees they’re paying—and what services they’re receiving in return.
Some experts believe this could lead to changes in disclosure requirements, or even the elimination of trailing commissions in certain channels. For investors, it’s a reminder to review account statements and question any fees that aren’t clearly explained.
How to Claim: Simple Steps, But Time Is Running Out
For eligible Canadians, the process is clear but the window is narrow. The official website provides step-by-step instructions for submitting a claim, and applicants are encouraged to act quickly. With the December 20, 2025, deadline looming, procrastination could mean missing out on compensation that’s rightfully theirs.
The settlement is the result of months of negotiation and judicial review. It was reached in October 2024 and approved by the Ontario Superior Court of Justice two months later. Now, the final phase is underway: distributing the funds to those impacted.
For many, this is not just about money—it’s about fairness, transparency, and holding financial institutions accountable. The TD mutual funds case is a stark reminder that, in the complex world of investing, every fee matters and every investor deserves clarity.
While the $70-million TD settlement marks a significant moment for Canadian investors, it also exposes the need for ongoing vigilance around investment fees and broker practices. As the deadline approaches, the story serves as both a cautionary tale and a call to action: informed investors are empowered investors.