Regulatory Alerts2020-02-20
CSA Multilateral Notice of Publication: Amendments Prohibiting Deferred Sales Charges for Investment Funds
The Canadian Securities Administrators, excluding the Ontario Securities Commission, are adopting amendments to Regulation 81-105 and related policies to prohibit fund organizations from paying upfront sales commissions to dealers. This regulatory change effectively bans the deferred sales charge (DSC) option and low-load options in participating jurisdictions to address investor protection and market efficiency concerns. The amendments are scheduled to come into force on June 1, 2022, allowing existing DSC holdings to complete their redemption schedules while requiring all new purchases to comply with the new rules.
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