Regulatory Alerts2025-06-26
Draft Regulation to amend Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations
The securities regulator issued a draft regulation to amend Regulation 31-103 by introducing Division 4, which addresses certain compensation practices. The new rule prohibits registrants from requiring or causing affiliates to require the reimbursement of upfront commissions or sales charges upon the redemption of investment fund securities. This measure aims to eliminate compensation structures that may incentivize the retention of clients holding redeemable securities for the benefit of the distributor rather than the investor.
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