TD’s Mutual Fund group proved yet again why I really don’t like dealing with them. Some might ask, “Why do I have so many TD Mutual Fund accounts?”. Surprisingly because I had a group of CT Mutual Fund Accounts, that changed over to TD Mutual Fund accounts (I should have just closed them and gone with TD Waterhouse accounts, but hindsight is 20/20).
One of the accounts is my “Emergency Fund“, and I decided that I should maybe move funds from a T-Bill Fund to a Bond Fund (E-series) just for a little bit of growth. A Bond Fund is a little riskier than a T-Bill account, but it was not like I wanted to buy the TD North African Sahara Sand Fund or something risky like that (keep that in mind).
The transaction went through (it actually showed up in my list of funds in my account) and then a day later, the transaction was reversed and I received the following e-mail:
We appreciate your business and thank you for your request.
For security reasons, we have not included your name and account number in this communication. Please do not reply to this e-mail. It is our policy not to send, nor to ask our customers to send account and trade-related information by e-mail.
After further review of your trade, we are required to reverse your trade request because it may not be suited to your current investor profile. We have based this assessment on the information you provided us regarding your personal circumstances, investment knowledge, objectives, time horizon and risk tolerance. Not only do we want to help you make the best investment decisions, we are required to assess the suitability of all mutual fund account transactions. Please contact a Mutual Funds Representative1 to review and update the information we have regarding your Investor Profile.
Part of me is glad to see this being done, thus stopping Grandmothers from taking their funds and dumping it into a Chinese Hay Bailing Mutual Fund, but seriously how is moving from a Money Market account to a Bond Fund that risky?
The other thing that really upset me was that the transaction went through, the Mutual Fund transfer appeared and then it was reversed! Wonder if anyone got a commission on that?
I dutifully called up to talk to a very pleasant young man, and he informed me that my Investing profile hadn’t been updated for a while (1997 to be exact), so maybe we could change things a little. We went through each question and at the end of it, I was still not an aggressive enough investor to buy the TD E-Series Bond Fund (TDB909 ) (not the first time I have been told I am Too Conservative in My Investing )
At that point we entered into a hypothetical situation where I might have asked the young man what I needed to do to allow me to invest in whatever I wanted in the Mutual Fund account, and the very helpful young man may have suggested we review a few of my answers. In this hypothetical situation, I might have changed my answers a little to reflect a more aggressive investing stance (after someone might have explained what each response might mean), and at the end of it, I might have been allowed to transfer my T-Bill Index Fund holdings into the TD E-series Bond Fund.
I really should just transfer these accounts into TD Waterhouse accounts, but maybe TD Mutual Funds needs a, “I Understand the Risks and Wish to Do It Myself” declaration, absolving them of any wrong doing, should I decide to buy the “Buggy Whip and Bumpers Mutual Fund”, or the like?