# Trailing Commissions TDB8150



## Synergy (Mar 18, 2013)

Purchased some TDB8150 today and for the first time I noticed the following warning (please check all warnings and click next to continue with this request):



> TD Direct Investing receives a trailing commission from the Mutual Fund company for as long as you hold this Mutual Fund. See the Fund Facts for more details.[61025]


After doing a quick search on the internet it appears that this is not new, they must now simply be required to disclose the trailing fee.

It won't stop me from using it, but it was news to me and I appreciate the full disclosure.


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## Retired Peasant (Apr 22, 2013)

That warning comes up for every mutual fund (whether that MF pays a trailing commission or not). TDB8150 does not pay a trailing commission (8155 might though).


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## Eclectic12 (Oct 20, 2010)

It is certainly relevant info ... but I'm not sure why it would be called a "warning".

IAC ... considering what is paid for straight cash held in the brokerage account, I'm not sure it's all that important.

Though in a taxable account, the transfers are fast enough that a true savings account such as PCF or Tangerine to avoid any trailing fees, if one was concerned.


Cheers


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## Synergy (Mar 18, 2013)

Retired Peasant said:


> That warning comes up for every mutual fund (whether that MF pays a trailing commission or not). TDB8150 does not pay a trailing commission (8155 might though).


Are you sure? I could be wrong but I don't recall seeing that message before when purchasing TDB8150.


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## Synergy (Mar 18, 2013)

Eclectic12 said:


> It is certainly relevant info ... but I'm not sure why it would be called a "warning".


That's just how their system is set up "warning". I guess they could have used a different wording but it does help draw your attention and they use the same format for all their alerts / notices when placing a trade.


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## Synergy (Mar 18, 2013)

I think the trailing fee for TDB8150 is 0.25% and it's removed within paid accounts, hence the 1.50% paid within fee based accounts such as the F-Class versions of the investment savings accounts.


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## Retired Peasant (Apr 22, 2013)

That isn't a trailer fee though. According to the 'feature sheet', 8150 is a deposit, not a mutual fund. It 'may appear on a statement under the industry standard Mutual Fund heading'.


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## Squash500 (May 16, 2009)

Synergy said:


> I think the trailing fee for TDB8150 is 0.25% and it's removed within paid accounts, hence the 1.50% paid within fee based accounts such as the F-Class versions of the investment savings accounts.


 I spoke to a TDI rep today and those warning boxes are apart of new regulations imposed by the securities regulators. These warning boxes appeared for the first time last week.

IMHO 0.25% has always been the trailing commission for TDB8150 since day one.


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## Synergy (Mar 18, 2013)

^ Thanks Squash500, I was about to call them myself. I'm not sure what to call the fee but the following is from the Terms and Conditions document (TDB8150).



> 6. Dealer Compensation
> The Bank may pay, monthly or quarterly, compensation to your Dealer at an annual rate of up to 0.25% of the daily closing balance in the TD ISA. This rate may change from time to time at the Bank's sole discretion and without notice. For more information on Dealer compensation, please contact your Dealer.


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## Fain (Oct 11, 2009)

Synergy said:


> ^ Thanks Squash500, I was about to call them myself. I'm not sure what to call the fee but the following is from the Terms and Conditions document (TDB8150).


July 15th is when these communist rules came into force. The new Pre-Trade disclosure rules affect equities as well as MFs.


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## BoringInvestor (Sep 12, 2013)

Fain said:


> July 15th is when these communist rules came into force. The new Pre-Trade disclosure rules affect equities as well as MFs.


Communist?
I don't think that words means what you think it means.


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## Synergy (Mar 18, 2013)

Fain said:


> July 15th is when these communist rules came into force. The new Pre-Trade disclosure rules affect equities as well as MFs.


Thanks Fain. Just got this message this morning:



> *Important Information about Commission and Fee Disclosures*
> 
> At TD Direct Investing, we're committed to transparency and ensuring you're aware of any costs associated with your investments.
> 
> ...


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## humble_pie (Jun 7, 2009)

alas the new disclosure rules do not treat the FX charges that brokers are routinely charging on many types of USD dividends, without revealing the same to the client.

there have been massive, exhaustive threads on different aspects of this issue, it remains an interesting ongoing scandal.

broker FX rates are not regulated. Brokers could charge 29% FX fees if they thought they could get away with it. The brokerage industry is not federally regulated, therefore the Bank Act provisions for FX disclosure from banks & credit card companies don't apply to them. The industry is provincially regulated. In canada, this means nothing, as nearly all the provincial securities authorities are weak.

in short the broker industry is left to be self-regulating. So far the IIROC - which is owned & operated by the brokers - has been protective of the brokers' collective interests in gradually raising their hidden FX fees. These have increased, in recent years, from an average of 190 basis points for a CAD/USD round trip conversion, to close to 300 basis points. In practical terms, this means that brokers are helping themselves to 1.50% of many USD dividends, without disclosure.

in reality wholesale FX costs have come down, not up, as worldwide network systems advance. My view is that the above-mentioned increase in retail broker FX fees over the past 5 years has occurred strictly because all is hidden, so there has never been any investor/client opposition. The brokers are simply taking advantage of opportunity that beckons. As a business model, nothing wrong with that.

there are workarounds that avoid some brokers' FX fee grabs. Over the past few years, this forum has explored & described several of these workarounds in detail.


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## james4beach (Nov 15, 2012)

It will be interesting to see if this new lawsuit over discount broker trailer fees will also cover ISAs.









Class action lawsuits


Does anyone have an idea of what the payout on this might be? I have not purchased Mutual Funds for a very long time, so it would be quite labour intensive to dig out the old paperwork. I would be willing to search for it though, if the payout wasn't the $5 - $10, sometimes involved in class...




www.canadianmoneyforum.com





Based on my amateur understanding of this matter, it seems that only the class action against TD has been certified so far. If you have been holding TDB8150 & related ISAs (especially if you've kept large balances for years) I suggest getting in touch with the law firm, to see if ISAs are going to be included.

I've contacted them. I estimate that over the last decade, I have easily paid 1K to 2K (rough estimate) through those 0.25% ISA trailing commissions.


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