Toronto-Dominion is reportedly shopping the U.S. division of TD Waterhouse. If true, any deal could shake up fund distribution through registered investment advisors (RIAs). TD Waterhouse Institutional ranks behind Charles Schwab and Fidelity Investments as a custodian of fund assets managed by RIAs.

The possible sale of the unit was first reported this morning by the Wall Street Journal. The report said that the Canadian bank has retained Goldman Sachs as its advisor and that a sale of the unit was one of several options it is exploring. A sale of the unit could net as much as $1.5 billion, according to the report.

The bank purchased Waterhouse in 1996 for a reported $500 million. It raised an additional $1 billion by through the sale of 12 percent of the unit to the public in 1999. It later repurchased that stake for $386 million.

By selling the firm, Toronto-Dominion would be able to raise cash for its core banking business, which reported its first loss last year.  

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