The TD Mutual Funds account number is assigned by TD Mutual Funds and is the reference number used to find accounts on our system. This number is also displayed on account statements sent to you and your customers by TD Mutual Funds. For TD Guaranteed Investment Funds II, the contract number, which is similar to an account number, is the reference number for its customer policies. It is also displayed on instructions sent to you and your customers. An Ontario court ruled that discount broker TD Waterhouse Canada Inc. was authorized to “sell” clients` margina accounts to meet margin requirements at the height of the financial crisis. A pre-authorized contribution plan (PAC) is a purchase that is automatically set up to transfer money from your client bank account in order to acquire certain amounts in certain funds. Contract transactions are a kind of ongoing transaction in which an agreement has been reached on the price and number of units executed. The transaction has not yet been completed at that time (for example. B exchange of funds to settle the transaction).
After the October 2008 decision, when TD Waterhouse completed the balances, client accounts with close to $75,000 were below regulatory margin requirements. The Company sold shares valued at more than $320,000 in the accounts to bring them into line with margin requirements. A court ruled that the discount broker had an “iron” reason for selling a client`s margin accounts The Superior Court of Justice dismissed a complaint filed by John Susin as his wife`s estate administrator, claiming that the company had been negligent and breached its obligations by liquidating its margin accounts. The tribunal found that TD Waterhouse, as part of its contractual rights, was to conduct the transactions in order to bring the accounts into compliance with the margin requirements. The court also stated that “the company`s obligation to wait to see what will happen to the market value of a security (not to mention a historically volatile market) would require [the company] to become an “accomplice” with its account holder, a position that has always been rejected by the courts.” A Systematic Payment Plan (SWP) is an automatic payment of a given fund in a plan not registered in its bank account or by cheque, which is delivered by mail to the previous address. “[TD Waterhouse] assessed the risk and took whatever steps it deems necessary to protect its interests,” the court said. “The margin agreement clearly provided an iron-based consequence for the account holder when the value of the securities acquired under the marginal mechanism decreased.” This number is assigned by your dealer and may be the reference number that appears on your statements and reseller systems. Distributions of certain funds include a return on investment. A return on investment is obtained when a trust pays more distributions than its own taxable income. The surplus is called return on investment. Return on investment is not part of the fund`s performance.
Such distributions can reduce the tax costs associated with holding the investment and result in an increase in capital gain or a smaller capital loss when the investment is sold.