Shareholder Spotlight : TD Asset Management’s Grimy Grip on Your Money

By /

In the cutthroat world of finance, where suits in glass towers shuffle billions like it’s pocket change, TD Asset Management Inc. stands out as a prime example of how the system screws the little guy while lining pockets with ill-gotten gains. This isn’t some fairy tale of ethical investing; it’s a raw, unfiltered look at a firm that’s knee-deep in scandals that reek of greed, incompetence, and outright disdain for the rules. As a subsidiary of Toronto-Dominion Bank, TDAM manages hundreds of billions, but peel back the layers, and you’ll find a mess of lawsuits, settlements, and shady dealings that would make any decent person gag. And yeah, I’m pissed off about it, because while they’re raking in fees, everyday investors are left holding the bag.

This expose isn’t about preaching from a high horse; it’s about dragging the truth into the light, no matter how ugly. TDAM’s history is littered with controversies that expose the underbelly of asset management – from fleecing mutual fund holders to indirect ties in money laundering debacles. And just when you think it couldn’t get dirtier, they’re confirmed investors in polluters like Cummins Inc., holding around 118,000 shares valued at roughly $39 million as of mid-2025. That’s not chump change; it’s a hefty bet on a company mired in its own emissions cheating nightmare. But more on that later. For now, let’s dive into the cesspool that is TDAM’s track record, because someone has to call this crap out.

The Mutual Fund Fee Rip-Off: Trailer Commissions Gone Wild

Picture this: you’re an average investor, trusting your hard-earned cash to a mutual fund, thinking the pros at TDAM have your back. But behind the scenes, they’re allegedly siphoning off millions in trailer fees – those sneaky commissions paid to brokers for “advice” that never materialises. In one glaring case, TDAM got slapped with a class-action settlement for paying these fees to discount brokers who provided zero guidance to clients. We’re talking about C$70.25 million forked over, covering trailer payments totalling around C$622 million from 2002 to 2022. A big chunk of that – C$522 million – went straight to their own affiliate, TD Direct Investing.

The outrage? These fees eroded fund values, hitting investors where it hurts most: their returns. Regulators finally banned this practice in 2022, but not before TDAM and others allegedly milked the system dry. And get this – they settled without admitting a damn thing, because why own up when you can just pay to make it go away? Investors who held TD mutual fund units through discount brokers up to September 2024 can now claw back a piece of that pie, but it’s a drop in the bucket compared to the damage done. This wasn’t a glitch; it was a calculated grab, and it stinks of entitlement.

Then there’s the parallel scandal with investment advisers. Another class action accused TDAM of similar fee abuses, leading to a C$8.5 million settlement. Again, no admission of guilt, just a quiet payout to hush the noise. These weren’t isolated incidents – they were part of an industry-wide scam that allegedly cost Canadians up to C$5 billion in bogus fees. TDAM was among the first to fold and settle, perhaps knowing the evidence was stacking up. If this doesn’t boil your blood, what will? It’s corporate theft dressed up as business as usual.

The Money Laundering Vortex: TD Bank’s Shadow Looms Large

Shift gears to the bigger picture, where TDAM’s parent, TD Bank, plunges into a scandal so massive it could sink a lesser institution. In October 2024, TD Bank pleaded guilty to U.S. charges for failing to sniff out money laundering by drug cartels and other crooks. The penalties? A staggering US$3 billion-plus in fines, including US$1.4 billion to the Department of Justice and US$1.3 billion to FinCEN. Add an asset cap of US$434 billion and four years of babysitting by independent monitors, and you’ve got a bank that’s been thoroughly humiliated.

How does this tie to TDAM? As the asset management arm, they’re not isolated from the fallout. Shareholder lawsuits followed, alleging executives misled investors about fixing the anti-money laundering screw-ups, inflating stock prices in the process. Filed in New York’s Southern District Court, these suits paint a picture of deception that ripples through the entire TD empire. Public chatter links TDAM indirectly via shared personnel and practices, with former bigwigs like Frank McKenna – ex-TD deputy chair – caught in the crossfire. McKenna’s ties to Brookfield Asset Management, where Mark Carney holds sway, fuel allegations of deeper corruption, including “secret ties” to the laundering mess.

It’s infuriating – while cartels wash blood money, TDAM allegedly benefits from the parent’s lax oversight. Employees got fired, growth stalled, and investors suffered, but the top brass? They settle and move on. This isn’t just negligence; it’s a betrayal that exposes the fragility of trusting these giants with your future.

Credit Reporting Chaos: Tarnishing Lives for Profit

Not content with fee grabs and laundering lapses, TD Bank – and by extension, TDAM’s ecosystem – botched credit reporting on a massive scale. In September 2024, regulators ordered a US$28 million payout for illegally damaging consumer credit reports, affecting tens of thousands. The issues? Shoddy anti-money laundering programs and inaccurate data that wrecked people’s financial lives.

TDAM might not be directly named, but as part of the TD machine, they’re tainted by association. Compliance failures like this undermine trust in the whole operation, especially when asset management relies on pristine governance. Victims got US$7.76 million in direct compensation via the CFPB, but the reputational hit? Priceless, and deservedly so. It’s another layer of incompetence that screams, “We don’t give a shit about the consequences”.

Betting on the Bad Guys: Investments in Polluters Like Cummins

Now, let’s talk about TDAM’s portfolio choices, because nothing says “responsible investing” like backing companies that poison the planet. Confirmed through regulatory filings, TDAM holds a significant stake in Cummins Inc. – around 118,000 shares, clocking in at about US$39 million as of October 2025. That’s no small fry; it’s a deliberate investment in an engine maker infamous for its emissions scandal.

Cummins agreed to a whopping US$1.675 billion settlement in 2023 for installing defeat devices on hundreds of thousands of engines, cheating emissions tests and spewing pollutants into the air. This is the dirty ecosystem that groups like TCAP are hell-bent on exposing – investors propping up polluters who prioritise profits over clean air. TDAM’s involvement? Just another fund manager willing to dive into this muck, allegedly turning a blind eye to the environmental havoc in pursuit of returns. It’s hypocritical, especially amid their ESG posturing, and it pisses me off that “net-zero” commitments often mask investments in coal-hauling filth.

Ties to Brookfield add more grime, with allegations of sleight-of-hand on carbon credits and passing costs to consumers. Figures like McKenna and Carney are accused of orchestrating this web, blending money laundering echoes with greenwashing. TDAM’s stake in Cummins isn’t illegal, but it’s a moral gut-punch, highlighting how asset managers fuel the very problems they claim to combat.

The Web of Influence: Dubious Ties and Greenwashing Games

Delve deeper, and TDAM’s connections paint a portrait of influence peddling. The Brookfield overlap, with McKenna’s dual roles and Carney’s chairmanship, sparks claims of corrupt networks. Public scrutiny alleges hypocritical net-zero pledges while shipping coal to high-polluting markets like China. It’s a farce – touting savings on carbon credits while allegedly hiking consumer bills.

These aren’t wild theories; they’re rooted in personnel overlaps and public records. TDAM, as TD’s arm, absorbs the blowback, with stock dips and regulatory shackles hampering growth. It’s a tangled mess of ambition and avarice, where the powerful skate free while the rest choke on the fumes.

In the end, TDAM embodies everything wrong with modern finance: a facade of sophistication hiding a core of self-serving bullshit. From fee scandals to pollution bets, they’re players in a game rigged against you. Settlements come and go, but the damage lingers – eroded trust, polluted air, laundered fortunes. If this doesn’t make you furious, you’re not paying attention. Demand better, because these bastards won’t change unless forced.

Lee Thompson – Founder, The Cummins Accountability Project

Sources

Scroll to Top