Mutual Fund Trailing Commissions Class Action

Active Action

Siskinds LLP and Bates Barristers P.C. have filed proposed class actions against TD Asset Management Inc. and 1832 Asset Management L.P. regarding trailing commissions they paid to discount brokers on mutual funds under their management. TD Asset Management Inc. is the trustee and manager of the TD mutual funds. 1832 Asset Management L.P. is the trustee and manager of the Scotia mutual funds and Dynamic mutual funds.

The actions allege that the defendants pay substantial sums of money out of investors’ mutual fund investments as trailing commissions to discount brokers through which the mutual funds are sold.  Trailing commissions are intended to compensate mutual fund dealers, such as discount brokers, for investment advice they provide to investors.  However, discount brokers are prohibited from providing investment advice to investors, and so it is alleged that investors who hold these funds through discount brokerages receive no value for the trailing commissions paid.

The actions seek 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 actions, units of a TD, Scotia and/or Dynamic mutual fund trust through a discount broker. The actions claim damages and other relief.

If you hold or previously held units of a mutual fund that pays trailing commissions in a discount brokerage account, please click the “Receive Updates on this Case” button below and complete the form. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds LLP or Bates Barristers P.C., nor do you incur any obligations in connection with this lawsuit.

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Developments

In April 2018, Siskinds LLP and Bates Barristers P.C. filed a proposed class action against TD Asset Management Inc. regarding trailing commissions paid to discount brokers on TD mutual funds. The action claims damages of $200 million and other relief. The action is in the pre-certification stage of the litigation.

In June 2018, Siskinds LLP and Bates Barristers P.C. filed a proposed class action against 1832 Asset Management L.P. regarding trailing commissions paid to discount brokers on Scotia mutual funds and Dynamic mutual funds. The action claims $200 million and other relief. The action is in the pre-certification stage of the litigation.

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