LONDON and TORONTO, April 9, 2018 /CNW/ - Siskinds LLP and Bates Barristers P.C. have filed a proposed class action against TD Asset Management Inc. ("TDAM") regarding trailing commissions paid to discount brokers on TD mutual funds.
The action alleges that TDAM, as the trustee and manager of TD mutual funds, pays substantial sums of money out of TD mutual funds as trailing commissions to discount brokers through which the mutual funds are sold. These payments reduce the returns of investors. TDAM describes the purpose of the trailing commissions as compensation for "services and advice" provided to investors. However, discount brokers are prohibited from providing investment advice to investors, and so it is alleged that investors who hold these funds in discount brokerages receive no value for the trailing commissions paid.
The action seeks to advance claims on behalf of all persons, wherever they may reside or be domiciled, who hold or held, at any time prior to the conclusion of the trial of the common issues in the proposed class action, units of a TD mutual fund through a discount broker.
Gary Stenzler, the proposed representative plaintiff in the action said "I invested in mutual funds to save for my retirement and to help fund my children's education. I was troubled to learn that the trustee of the mutual funds I owned was taking a portion of my life's savings to pay my discount broker for advice and services which I did not receive."
"Canadians entrust their hard-earned savings to the trustee of their mutual funds on the understanding that the trustee will protect and maximize the value of their investments. Paying trailing commissions to discount brokers as compensation for advice that is never provided to investors is not just or fair," said Michael Robb of Siskinds LLP in London.
"It's time for investors to challenge this long-standing practice of paying trailing commissions to discount brokers, which is common throughout the mutual fund industry in Canada. This practice continues today despite ongoing regulatory review of embedded commissions having regard to investor protection concerns," said Paul Bates of Bates Barristers P.C.
Class Member Contacts:
If you hold or previously held units of a mutual fund that pays trailing commissions in a discount brokerage account, we encourage you to complete the information form on the website of Siskinds LLP at www.siskinds.com/mutual-fund-trailing-commissions/ by clicking on the "Receive Updates on this Case" link.
If you would like to contact Class Counsel, please direct your inquiries to Siskinds LLP at 1800-461-6166 x 4228 or [email protected].
About Class Counsel
Siskinds LLP (www.siskinds.com) is a full-service law firm headquartered in London, Ontario and is Canada's leading class actions firm. It was the first law firm to secure certification of a class proceeding under the Class Proceedings Act, 1992.
Bates Barristers P.C. (www.batesbarristers.com) is a leading litigation boutique in Toronto specializing in class actions, complex commercial litigation, public law and appeals.
SOURCE Siskinds LLP