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2026-06-11

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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Autorite des marches financiers Quebec

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REGULATION TO AMEND REGULATION 81-105 RESPECTING MUTUAL FUND SALES PRACTICES Securities Act (chapter V-1.1, s. 331.1, par. (16) and (19.5))

  1. Regulation 81-105 respecting Mutual Fund Sales Practices (chapter V-1.1, r. 41) is amended by inserting, after section 2.3, the following: “2.4. Principal Distributors A principal distributor of a mutual fund shall not be a principal distributor of another mutual fund unless the other mutual fund is a member of the same mutual fund family.”.
  2. Section 4.2 of the Regulation is amended by inserting, before paragraph (1), the following: “(0.1) A principal distributor of a mutual fund that is also a principal distributor of another mutual fund that is in the same mutual fund family as the first-mentioned mutual fund shall not provide an incentive for any of its representatives to recommend a mutual fund of which it is a principal distributor over another mutual fund of which it is a principal distributor.”.
  3. Section 7.1 of the Regulation is repealed. Transition
  4. Before 1 October 2028, an investment fund is not required to comply with the Regulation, as amended by this Regulation, if the investment fund complies with the Regulation as it was in force on 30 September 2026. Effective Date
  5. (1) This Regulation comes into force on 1 October 2026. (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 1 October 2026, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations.
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