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. A court ruled that the discount broker had an “iron” reason for selling a client`s marginal accounts. It is easy to open a cash account, margina, RSP or TFSA. 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. The Supreme Court dismissed a complaint filed by John Susin as his wife`s estate administrator, in which he claimed that the company had been negligent and breached its obligations by liquidating its margin accounts. Increase your purchasing power with a margin account using the value of your portfolio. If you trade with Margin, you borrow money against securities you already own to buy additional securities. Check out our margin rates in Margin Requirements – Concentration Guidelines. or visit our margin centre The court also found that “the obligation of [the corporation] to refrain from waiting and waiting to see what will happen to the market value of a security (not to mention a historically volatile market) that would impose on [the company] the obligation to become a “co-speculator” with its account holder, a position that has been consistently rejected by the courts.” In particular, he stated that a lender had promised the company to spend extra time selling securities or adding funds to meet the company`s margin requirements.
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. “[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.” While both parties disputed whether the promise to give more time had been made, the court decided that it did not matter because the company was “authorized to proceed with the sale, regardless of whether or not an extension was granted.” The court dismissed the case and ordered nearly $70,000 in costs against Susin. The credit values of some securities may change. Please see our list of securities with increased margin We are here for you. Monday to Friday, 7am-6pm AND Leveraged Trades are not for everyone. With the potential for higher returns, comes the flip side of increased exposure and risk. Let`s talk face to face on a TD site that is comfortable for you.
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