Overview of the Settlement

Toronto-Dominion Bank (TD) has reached a $70.25 million class-action settlement concerning commissions paid to discount brokers.

Legal Background

The case, led by Siskinds LLP, is centered on allegations by investors who claim they received no value for trailing commissions.

What Are Trailing Commissions?

Trailing commissions are typically paid out on mutual funds to compensate brokers for advisory services.

Investors’ Concerns

Investors argue that if they’re not receiving meaningful investment advice, then these fees are unjustified.

Broader Legal Implications

Siskinds has filed proposed class actions against other mutual fund managers operating discount brokerage services.

Pending Approval

The settlement with TD is pending approval from the Ontario Superior Court of Justice.

TD Asset Management's Response

TD Asset Management defended its practices but declined to comment on the ongoing proceedings.

Potential Industry Impact

The implications of this settlement may set a significant precedent in the financial industry.

Conclusion

Investors across Canada are likely watching closely, hoping for changes regarding discount brokerage commissions.