(Toronto) Siskinds says a $70.25 million class action settlement has been reached with TD Asset Management over commissions paid to discount brokers.
Law firm says class members alleged that because discount brokers are not licensed to provide investment advice, investors receive no value for the trailing commissions they pay to these brokers.
He points out that trailing commissions paid on mutual funds are intended to compensate mutual fund dealers for the investment advice they provide to investors.
Siskinds says it has filed class action proposals against several mutual fund managers that have discount brokers, which, along with TD Direct Investing, also includes RBC Direct Investing, BMO InvestorLine, CIBC Investor’s Edge, Scotia iTRADE and National Bank Direct Brokerage.
The proposed settlement with TD covers anyone who held units of a TD mutual fund trust through an executing broker on or before September 11, 2024.
The settlement is still subject to approval by the Ontario Superior Court of Justice.
The bank says TD Asset Management has a strong track record of providing investment solutions that meet the diverse needs of its clients, but is unable to comment on matters that are the subject of proceedings before the courts.