If you’ve ever invested in TD mutual funds, you may be entitled to a portion of a multimillion-dollar class-action settlement—but time is running out.
In March 2025, the Ontario Superior Court of Justice approved an $8.5 million class-action settlement with TD Asset Management Inc., bringing resolution to allegations surrounding improper trailing commission payments. Here’s everything you need to know about who qualifies, how to claim your compensation, and important deadlines you don’t want to miss.
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Why Is There a Settlement With TD Asset Management?
The lawsuit alleged that TD Asset Management improperly paid trailing commissions—fees meant to compensate mutual fund dealers for providing advice—to discount brokers who do not offer advisory services.
As a result, investors may have seen diminished returns on their mutual fund investments.
Although TD has not admitted any wrongdoing, the company has agreed to settle to avoid further legal proceedings.
Who Qualifies for the $8.5M TD Mutual Fund Settlement?
You may be eligible for compensation from this settlement if:
- You currently hold or previously held units of a TD mutual fund trust at any time on or before September 11, 2024.
This includes residents of any province or territory in Canada—or even Canadians living abroad.
Important: Discount Broker Investors Are Not Included
If you purchased TD mutual funds through discount brokers like:
- TD Direct Investing
- BMO InvestorLine
- RBC Direct Investing
- Scotia iTRADE
- CIBC Investor’s Edge
- National Bank Direct Brokerage
You are not included in this $8.5 million settlement. However, a separate $70.25 million settlement was approved last year for those investors. The deadline to claim from that fund is December 20, 2025.
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How Do You Claim Your Settlement Money?
The process depends on whether you still own TD mutual funds:
For Current TD Mutual Fund Investors
If you still hold units in a TD mutual fund, you don’t need to do anything. The law firm Kalloghlian Myers LLP says the settlement funds will be automatically deposited into your investment account.
For Former TD Mutual Fund Investors
If you no longer hold any TD mutual fund units, you must submit a claim form to receive your share of the settlement.
Deadline to file a claim:
August 28, 2025
Be sure to submit your form on time to avoid missing out.
Why This Matters to Canadian Investors
This settlement is one of several recent class-action cases aimed at reforming how mutual fund fees are managed in Canada. With millions of Canadians holding mutual fund investments, these legal outcomes can have real impacts on long-term returns and financial transparency.
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Summary: Key Dates and Takeaways
- Settlement Amount: $8.5 million
- Eligible Investors: Anyone who held or holds TD mutual fund units on or before September 11, 2024
- Automatic Payouts: For current mutual fund holders
- Claim Deadline: August 28, 2025 (for former mutual fund investors)
- Separate Discount Broker Settlement: $70.25 million, claim by December 20, 2025
Don’t Leave Money on the Table
If you’ve invested with TD in the past, now is the time to check your eligibility and act. Whether your funds are still active or long since sold, you could be entitled to a payout. With deadlines approaching, make sure your claim is submitted before it’s too late.