td mutual funds settlement class action

Final Call: Canadians Have One Week Left to Claim Their Share of the $70M TD Mutual Funds Settlement

If you’ve ever invested in a TD Mutual Fund—especially through a traditional advisor or directly with TD—you could be owed money. Time is running out: Canadians have just one week left to file a claim as part of a landmark $70.25 million class-action settlement involving TD Asset Management Inc. (TDAM). With the deadline fast approaching, financial experts and consumer advocates are urging eligible investors to act now—before it’s too late.

This settlement stems from allegations that TD paid “trailing commissions” (also known as trailer fees) to discount brokers who sold its mutual funds, even though these brokers typically don’t provide investment advice. The lawsuit argued this practice unfairly increased costs for investors who bought TD mutual funds outside of discount broker platforms—meaning everyday Canadians may have unknowingly paid higher fees than necessary.

The Ontario Superior Court of Justice approved the settlement in early 2025, and claims are now being processed. But if you don’t submit your claim by the cutoff date, you’ll lose your right to any payout—no exceptions.

Recent Updates: What You Need to Know Right Now

According to verified reports from Global News, Daily Hive, and Narcity, the claims period for this settlement is ending imminently. While exact deadlines vary slightly across sources, all confirm that December 2025 marks the final window for Canadians to submit valid claims.

“This is your last chance to claim money from a $70 million TD class action lawsuit,” warns Narcity in a December 2024 update. “If you held TD mutual fund units—but not through a discount broker—you might qualify.”

The settlement amount totals $70.25 million, making it one of the largest consumer financial settlements in recent Canadian history related to mutual fund fee practices. Importantly, eligibility isn’t based on how much you invested—it’s about how and when you held those funds.

Eligible individuals include anyone who, at any time on or prior to September 11, 2024, held units of a TD Mutual Fund—except through a discount broker platform like Questrade, Wealthsimple Trade, or Qtrade. This distinction is critical: if you bought your TD funds via a full-service advisor, directly through TD, or via a bank branch, you’re likely part of the class.

Claims can be filed online through the official settlement administrator’s website (linked in official notices), and no legal representation is required. The process is designed to be straightforward—but only if you act before the clock runs out.

Why This Settlement Matters: Understanding the Background

To grasp the significance of this case, it helps to understand how mutual fund fees work in Canada—and why trailing commissions became such a flashpoint.

Mutual funds often charge management fees that include a portion called a “trailing commission.” These are ongoing payments made to advisors or brokers for selling and holding the fund. In theory, they compensate advisors for ongoing service. However, discount brokers—which offer low-cost, self-directed trading without personalized advice—typically don’t provide such services. Yet, evidence presented in the class action showed that TD continued to pay these commissions to discount brokers, which may have allowed those brokers to offer lower upfront costs while still benefiting from hidden revenue streams.

The legal argument? Investors who bought TD mutual funds outside of discount broker platforms (i.e., through full-service channels) were effectively subsidizing a system that gave an unfair advantage to discount brokers—without receiving proportional value in return. This allegedly resulted in higher overall costs for non-discount-broker investors.

This isn’t the first time Canadian regulators have scrutinized trailing commissions. In fact, the Canadian Securities Administrators (CSA) banned trailer fees for discount brokers back in 2022 as part of broader efforts to increase transparency in mutual fund pricing. But this class action addresses practices that occurred before that regulatory change—and seeks compensation for affected investors retroactively.

The TD settlement follows similar actions against other major Canadian banks, including RBC and CIBC, though the TD case stands out due to its size and the clarity of its eligibility criteria.

“This ruling reinforces that investors deserve transparency—and fairness—in how their money is managed,” said a spokesperson for the Canadian Foundation for Advancement of Investor Rights (CFAIR), a nonprofit advocacy group monitoring the case.

Who’s Eligible—and How Much Could You Get?

Eligibility hinges on two key factors:

1. You held units of a TD Mutual Fund at any point up to September 11, 2024.
2. You did NOT hold those units through a discount broker.

If both conditions apply, you’re likely part of the class—even if you no longer hold the funds. Importantly, you don’t need to have lost money outright; the settlement compensates for the alleged overpayment of fees due to the trailing commission structure.

Payout amounts will vary based on individual holdings and the total number of valid claims submitted. While exact figures aren’t public yet, past settlements of this nature have resulted in payments ranging from $50 to several hundred dollars per claimant, depending on account size and duration of investment.

Crucially, you must actively file a claim—money won’t be automatically distributed. The settlement administrator has set up a dedicated portal where Canadians can verify their eligibility, upload documentation (like account statements), and submit claims electronically.

It’s also worth noting that this settlement covers all TD Mutual Funds, not just specific series or classes. So whether you held TD Canadian Equity, TD Balanced Growth, or any other TD-branded mutual fund (outside a discount broker), you should check your eligibility.

Immediate Effects: What This Means for Canadian Investors

The ripple effects of this settlement extend beyond individual payouts. For one, it sends a strong message to Canada’s financial industry: opaque fee structures and unequal treatment of investors won’t go unchecked.

Regulators and consumer groups hope this case will encourage greater standardization in how mutual fund fees are disclosed and applied. “When investors can’t easily compare costs across platforms, the market fails them,” notes a recent analysis by the Investment Funds Institute of Canada (IFIC). “Settlements like this push the industry toward clearer, fairer practices.”

For everyday Canadians, the immediate impact is practical: a potential cash refund for past investments. But there’s also a behavioral shift underway. More investors are now questioning fee structures, asking advisors about trailing commissions, and considering low-cost alternatives like ETFs—which generally don’t carry trailer fees.

Additionally, the high volume of public attention—over 2,000 searches monthly for terms like “TD mutual funds settlement”—shows growing consumer awareness. Social media, news outlets, and financial blogs have amplified the message, helping ensure fewer eligible Canadians miss the deadline.

However, challenges remain. Many older or less tech-savvy investors may not realize they’re eligible—or may struggle with the online claims process. Advocacy groups are urging TD and the settlement administrator to provide phone support and multilingual resources to ensure equitable access.

Looking Ahead: What Happens After the Deadline?

Once the claims period closes, the settlement administrator will review all submissions, verify eligibility, and calculate individual payouts. This process could take several months, with distributions expected in mid-to-late 2026.

But the story doesn’t end there. Legal experts predict this case could set a precedent for future class actions targeting fee disparities in Canada’s $2+ trillion mutual fund industry. With increasing scrutiny from both courts and regulators, financial institutions may need to rethink how they structure compensation for advisors and brokers.

There’s also the question of systemic reform. While the ban on discount broker trailer fees was a step forward, critics argue more needs to be done to level the playing field. Proposals include mandatory fee breakdowns on statements, standardized cost comparisons, and even the phasing out of trailer fees altogether in favor of flat advisory fees.

For now, though, the focus remains on individual action. As Global News emphasized in its coverage:

“If you’ve ever invested in a TD mutual fund the traditional way—don’t assume someone else will claim for you. This is your money. Claim it.”

Final Reminder: Don’t Miss Out

With just days left before the deadline, now is the time to act. Visit the official TD Mutual Funds Class Action Settlement website (linked in court-approved notices and news articles) to check your eligibility and file