Regulatory Alerts2026-06-11
Regulation to Amend Regulation 81-105 Respecting Mutual Fund Sales Practices
The Canadian Securities Administrators amended Regulation 81-105 to restrict principal distributors from representing mutual funds outside their own family and to prohibit incentives that bias representatives toward specific funds within the same family. These changes aim to eliminate conflicts of interest by ensuring principal distributors focus exclusively on their designated fund family and do not steer clients based on financial incentives. The regulation comes into force on October 1, 2026, with a transition period allowing compliance with the previous version until October 1, 2028.
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