Regulatory Alerts2026-06-11
CSA Notice of Publication - The Principal Distributor Model
The Canadian Securities Administrators (CSA) are adopting amendments and changes to the principal distributor model for mutual fund securities. These updates clarify that a dealer may only act as a principal distributor for mutual funds within the same family, mandate disclosure of principal distributor arrangements and compensation, and prohibit the deferred sales charge option for mutual fund securities distributed by principal distributors. Aimed at improving investor protection and market confidence, the amendments to Regulation 31-103 take effect January 1, 2027, while other regulatory changes for 81-101, 81-102, and 81-105 come into force October 1, 2026, with various transition periods.
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