TD’s Mutual Fund group proved yet again why I don’t particularly appreciate 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.” I decided to move funds from a T-Bill Fund to a Bond Fund (E-series) for more potential growth. A Bond Fund is a little riskier than a T-Bill account. It was not, however, like I wanted to buy the TD North African Sahara Sand Fund or something complex like that (keep that in mind).
The Mutual Fund Circular Cancellation
The transaction went through (it showed up in my list of funds in my account). Then a day later, TD cancelled the transaction. 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.A not very helpful email from TD Mutual Funds
Stopping Grandmothers from taking their funds and dumping them into a Chinese Hay Bailing Mutual Fund is good. How is moving from a Money Market account to a Bond Fund that risky?
The transaction went through, the Mutual Fund transfer appeared, and then they reversed it! Wonder if anyone got a commission on that?
What to do Next?
I called up and spoke to a pleasant young man. He informed me that I hadn’t updated my investing profile for a while. 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 ). I have been advised before that I am Too Conservative in My Investing.
At that point, we entered into a hypothetical situation. I might have asked the young man what I needed to do to invest in whatever I wanted in the Mutual Fund account. The accommodating young man may have suggested we review a few of my answers. I might have changed my answers slightly to reflect a more aggressive investing stance in this hypothetical situation. This might have happened after someone might have explained what each response might mean. In the end, I might have been allowed to transfer my T-Bill Index Fund holdings into the TD E-series Bond Fund.
What Should I really Do?
I really should transfer these accounts into TD Directline accounts. TD Mutual Funds needs an “I Understand the Risks and Wish to Do It Myself” declaration, absolving them of any wrongdoing, should I decide to buy the “Buggy Whip and Bumpers Mutual Fund,” or the like?