With the deadline fast approaching, Canadians have their last chance to partake in a massive class-action settlement involving TD mutual funds. A settlement was reached with TD Asset Management Inc. for $70.25 million over claims that the financial institution paid trailing commissions, or trailer fees, to discount brokers of mutual funds. This settlement is an opportunity for those impacted to reclaim some lost investment revenue.

Understanding the TD Settlement

The settlement was reached in October 2024 and approved by the Ontario Superior Court of Justice in December of that year. The lawsuit arose from allegations that TD paid trailer fees to discount brokers, who primarily operate online. These brokers 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, these brokers are not allowed to provide investment advice.

Trailing commissions on mutual funds typically compensate mutual fund dealers who advise investors. The plaintiffs alleged that since no advice was provided to investors who purchased mutual funds through discount brokers, these investors received no value for the trailing commissions which reduced the value of their mutual fund investments.

Eligibility for the TD Settlement

The settlement covers anyone, regardless of their location, who had or currently has units of a TD mutual fund trust through a discount broker at any point on or before Sept. 11, 2024. It’s therefore beneficial for those who think they may be eligible to submit a claim form to the administrator online by the deadline, Saturday, Dec. 20, 2025.

It’s important to note that some people may receive multiple notifications about the claims filing process. This can occur when a class member has multiple accounts with TD Direct Investing and the details for those accounts are not identical.

Note that this settlement is strictly for Canadians who held units of a TD mutual fund trust through a discount broker. If units were held other than through an investment advisor, a separate $8.5-million settlement that closed its claim deadline in August applies.

Other Settlements for Canadians

Apart from the TD settlement, there are other settlement deadlines that Canadians should be aware of. For instance, the Loblaw bread price-fixing deadline is also nearing. If you’re eligible, don’t forget to submit your claim.

Lead photo by Jack Landau

With additional input from Irish Mae Silvestre

Ethan Radcliffe

Ethan Radcliffe is a senior reporter and digital editor at The Toronto Insider, specializing in Canadian federal policy, GTA urban development, and national economic trends. With over a decade of experience in North American journalism, Ethan focuses on translating complex legislative and economic developments into clear, accessible reporting for Canadian readers. Ethan’s work emphasizes policy analysis, government accountability, and data-driven reporting, with a strong focus on how federal and provincial decisions impact communities across the Greater Toronto Area and beyond. He has covered infrastructure planning, housing policy, fiscal strategy, and regulatory changes affecting Canadian households and businesses. A graduate of Toronto Metropolitan University’s School of Journalism, Ethan brings expertise in investigative reporting, long-form analysis, editorial standards, and digital publishing best practices. His reporting is guided by verifiable sources, public records, and transparent sourcing. In addition to reporting, Ethan has experience in newsroom editing, fact-checking workflows, SEO-informed journalism, and audience analytics, ensuring stories meet both editorial integrity standards and modern digital discoverability requirements. Ethan is committed to objective, fact-driven journalism and adheres to established ethical guidelines, prioritizing accuracy, clarity, and public trust in all reporting.

See Full Bio