td class action lawsuit mutual funds

Final Days to Claim Your Share: What Canadians Need to Know About the $70M TD Mutual Fund Class Action Settlement

Time is running out for eligible Canadians to claim their portion of a landmark $70.25 million class action settlement involving TD Asset Management Inc. and investors in TD Mutual Funds. With the deadline fast approaching, financial experts are urging anyone who held these funds through a discount broker to act immediately—or risk missing out on a potential payout.

This settlement stems from allegations that TD paid millions in “trailing commissions” (also known as trailer fees) to discount brokers—even though these brokers typically provide little to no investment advice. The Ontario Superior Court of Justice has approved the settlement, but only those who submit valid claims by the cutoff date will receive compensation.

If you’ve ever invested in a TD Mutual Fund outside of a full-service brokerage—especially through platforms like Questrade, Wealthsimple Trade, or other discount brokers—you may be part of this class and entitled to compensation. Don’t assume you’re automatically enrolled: you must file a claim to get paid.

Recent Updates: Deadline Looms as Settlement Enters Final Phase

According to verified reports from Global News, Daily Hive, and Narcity, the claims period for the TD Mutual Funds class action is closing imminently. While earlier notices referenced a December 2025 deadline, multiple recent articles confirm that the final window to submit claims ends this weekend—making now the critical moment for eligible investors to act.

The settlement, totaling $70.25 million CAD, was approved by the Ontario Superior Court of Justice to resolve claims that TD Asset Management Inc. improperly paid trailing commissions to discount brokers. These fees were allegedly charged even when investors received minimal advisory services, potentially reducing overall returns.

“This is your last chance to claim money from a $70 million TD class action lawsuit,” warns Narcity, emphasizing the urgency for Canadians who may not realize they qualify.

Eligibility isn’t automatic. Only individuals who held units of a TD Mutual Fund—other than through a discount broker—at any time on or prior to September 11, 2024, are included in the class. However, confusion has arisen because the case specifically targets the practice of paying commissions to discount brokers, meaning investors using those platforms may have indirectly borne the cost.

The claims process is straightforward but requires action. Canadians must visit the official settlement website—managed by the court-appointed administrator—and complete an online form with basic account details. No legal representation is required, and there are no upfront fees.

Contextual Background: Why This Case Matters for Canadian Investors

To understand the significance of this settlement, it helps to unpack what “trailing commissions” are—and why they sparked a national class action.

Trailing commissions are ongoing fees paid by mutual fund companies to brokers or platforms for selling and holding their funds. In traditional full-service brokerages, these fees often align with the value of advice provided. But in the discount brokerage model—where investors trade independently with little to no guidance—critics argue that paying such commissions creates a conflict of interest and unnecessarily inflates costs for investors.

The TD class action alleged that TD Asset Management continued to pay these trailing commissions to discount brokers even when those brokers weren’t providing advisory services. This practice, plaintiffs argued, resulted in lower net returns for everyday investors who believed they were getting a low-cost, self-directed investing experience.

This isn’t the first time Canadian regulators have scrutinized trailing commissions. In fact, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA) have long debated the ethics and transparency of these fees. Some industry observers see this settlement as part of a broader shift toward fee transparency and investor protection in Canada’s wealth management sector.

“The approval of this settlement sends a clear message: financial institutions must be transparent about how investor money is used—and who benefits,” said a spokesperson cited in Global News.

Importantly, this case also highlights a growing trend: Canadians are increasingly turning to class actions to hold large financial institutions accountable. Similar settlements have targeted banks like RBC, BMO, and CIBC over mutual fund fee structures, signaling a shift in consumer expectations around fairness and disclosure.

Immediate Effects: Who’s Impacted and What It Means Right Now

So, who exactly is affected—and what should they do today?

Eligible individuals include: - Anyone who held units in a TD Mutual Fund (excluding certain institutional accounts) on or before September 11, 2024 - Investors who purchased these funds outside of a discount brokerage (e.g., through a bank branch, financial advisor, or direct channel) - Canadian residents or those domiciled in Canada at the time of investment

Notably, the settlement excludes investors who bought TD Mutual Funds through discount brokers—but this group was actually the one allegedly harmed by the trailing commission payments. The legal nuance here stems from how the class was defined: the lawsuit focused on TD’s conduct in paying fees to brokers, not directly on investor losses. As a result, the compensation pool is designed to benefit those who held the funds independently.

The immediate economic impact is significant. With over $70 million set aside, individual payouts could range from tens to hundreds of dollars, depending on account size and duration of holdings. While not life-changing for most, the settlement represents an important principle: investors deserve clarity about fees that eat into their returns.

Regulators and consumer advocacy groups are watching closely. If this case sets a precedent, other financial institutions may face similar scrutiny—especially as Canadians grow more aware of hidden costs in investment products.

Socially, the case has sparked conversations about financial literacy and the need for clearer communication from banks. Many investors were unaware that trailing commissions existed, let alone that they might be paying for services they never received.

“I had no idea these fees were being charged,” said one Toronto-based investor interviewed by Daily Hive. “I thought I was just paying a management expense ratio—not funding broker commissions.”

Future Outlook: What Comes After the Deadline?

Once the claims window closes, the settlement administrator will begin processing submissions and distributing funds. Payouts are expected to occur in early 2026, assuming no appeals delay the process.

But the ripple effects of this case extend far beyond individual refunds.

For the financial industry, this settlement reinforces the need for greater transparency. Expect increased pressure on banks and asset managers to disclose all fees—including indirect costs like trailing commissions—in plain language. Regulatory bodies may also revisit rules around how commissions can be structured, particularly in the context of digital investing platforms.

For investors, this case serves as a wake-up call. As passive investing and robo-advisors grow in popularity, Canadians must ask tougher questions about where their money goes and who profits from it. Tools like fee calculators and independent comparisons will become even more valuable.

For class action law, this settlement adds momentum to a rising trend. More Canadians are realizing that collective legal action can be an effective tool for accountability—especially when individual claims would be too small to pursue alone. Legal experts predict we’ll see more class actions targeting opaque fee structures in banking, insurance, and investment sectors.

Moreover, the success of this case could encourage similar actions against other major Canadian banks. If TD can be held accountable for trailing commissions, why not others? The precedent is now set.

How to Check Your Eligibility and File a Claim

If you’re unsure whether you qualify, here’s what to do immediately:

1. Visit the official settlement website: Look for the court-approved portal (linked in news reports from Global News and Narcity). Avoid third-party sites that may charge fees.
2. Gather your records: You’ll need account numbers, dates of investment, and fund names. Statements from TD or your brokerage should suffice.
3. Submit your claim online: The process takes less than 15 minutes. No lawyer needed. 4