Many Canadian investors who held TD mutual funds through discount brokerages are now in their final window to claim money from a major class-action settlement. The case centers on trailing commissions that were charged to investors even though discount brokers generally do not provide advice. These fees reduced returns for many people who were simply managing their own investments online.
The settlement, valued at more than $70 million, is now moving into its claims phase, and eligible investors have a limited period to submit the required information. This update is important for anyone who may have held TD mutual fund units in a self-directed account, as missing the deadline means losing the chance to receive compensation.
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What Led to the TD Settlement
The settlement stems from a class-action lawsuit filed against TD Asset Management Inc. The claim argued that certain TD mutual funds paid ongoing trailing commissions to discount brokers, even though those brokers did not provide the advisory services these fees were meant to cover. Trailing commissions are typically built into the cost of a mutual fund and are intended to compensate financial advisors for ongoing support. In a discount brokerage environment, the investor manages their own account, making the fee structure a point of concern.
The lawsuit stated that because discount brokerages do not offer personal investment advice, investors were paying charges that did not benefit them. TD Asset Management chose to resolve the matter through a settlement, which was later approved by the court.
Total Settlement Amount
The settlement fund totals about C$70.25 million. This amount will be used to compensate investors who were affected by the trailing commissions issue. Payouts will vary based on guidelines set by the settlement administrators and on the number of claims received during the filing window.
Who Is Eligible to File a Claim
Eligibility is focused on investors who held TD mutual fund trust units through a discount brokerage. This includes both current and former holders.
You may qualify if you:
- Held units of a TD mutual fund trust through a discount or self-directed brokerage.
- Held these units on or before September 11, 2024.
- Are a former holder who no longer owns the units and must file a claim to receive compensation.
Current holders
If your units are still held at a discount brokerage, you may not need to submit a claim form because compensation can be sent automatically through your account provider.
Former holders
If you previously owned qualifying TD mutual fund units but do not hold them anymore, you must file your claim to be included in the settlement distribution.
Deadline for Filing Claims
The filing deadline is December 20, 2025. This window gives former holders a final chance to secure their share of the settlement fund. Missing this deadline will remove the investor from eligibility entirely.
Why This Matters for Investors
Many Canadians who invest through online brokerages do so for lower fees and full control over their portfolios. The settlement highlights how certain hidden charges can affect self-directed accounts, especially when fees are designed for services that are not actually provided.
Investors who suspect they owned TD mutual fund units at any time before September 2024 should review their records or contact their brokerage to confirm eligibility.
How to Submit a Claim
A claim form is available through the official settlement administrator’s website. The form asks for basic information along with account details confirming past ownership. Submitting early helps ensure processing and reduces the risk of missing the final cutoff date.
Did you buy TD mutual funds through a discount broker? Deadline approaching to claim part of $70M class-action settlement https://t.co/3rQ8TCg18D via @stcatstandard
— The St. Catharines Standard (@StCatStandard) November 27, 2025