Regulatory Alerts2019-12-19
CSA Staff Notice 81-332: Next Steps on Proposals to Prohibit Certain Investment Fund Embedded Commissions
The Canadian Securities Administrators issued this notice to outline the implementation timeline for prohibiting specific investment fund embedded commissions, including deferred sales charges and trailing commissions paid to order-execution-only dealers. Participating jurisdictions will publish final amendments to ban the deferred sales charge option in early 2020, while the Ontario Securities Commission declined to adopt these specific changes. All CSA members plan to publish final amendments later in 2020 to prohibit trailing commission payments to dealers who do not make a suitability determination, with a transition period of at least two years anticipated for both measures.
Share