TD Bank Shores Up Governance Amid Regulatory Scrutiny

TD Bank Group (TD) recently announced significant changes to its senior executive team, naming Michelle Myers as the new Global Chief Auditor. This strategic move comes at a critical juncture for the bank, as it faces regulatory probes and fines for anti-money laundering (AML) failures. Myers' appointment signals a renewed commitment to strengthening risk management and governance, which could help restore investor confidence in the bank.

Myers brings a wealth of experience as a Chartered Professional Accountant with expertise in audit, finance advisory, and corporate finance. Her appointment comes after Anita O'Dell, the outgoing Global Chief Auditor, informed the bank of her intention to retire. O'Dell has been recognized for her professional rigour, strong governance mindset, and advocacy for diversity and inclusion at TD.



The appointment of Keith Lam as Acting U.S. Chief Auditor complements Myers' leadership. Lam's extensive experience in internal audit, public accounting, and technology will ensure continuity in the U.S. audit functions and help maintain TD's high audit standards across North America.

TD Bank faces significant challenges in the wake of ongoing regulatory probes and fines. The bank has set aside US$450 million to cover potential fines for one of the three regulatory probes and expects more monetary penalties. Fitch and S&P Global have downgraded their outlook for TD Bank amid these probes, although they have maintained their AA- ratings for the bank's debt. The bank's strong financial profile and diversified business have helped it weather these storms, but investors remain vigilant.



Myers' appointment as Global Chief Auditor, along with Lam's acting role in the U.S., indicates TD's determination to address regulatory concerns and restore investor confidence. By strengthening its risk management strategies and governance, TD can better navigate the complex regulatory landscape and emerge stronger from these challenges.

In conclusion, TD Bank's appointment of Michelle Myers as Global Chief Auditor and Keith Lam as Acting U.S. Chief Auditor demonstrates the bank's commitment to enhancing governance and risk management. As TD faces ongoing regulatory probes and fines, these strategic moves can help restore investor confidence and position the bank for long-term success. Investors should monitor the bank's progress in resolving these issues and consider the potential impact on earnings and risk profile.