Regulatory Alerts2021-06-23
CSA Notice 31-360: Transitional Relief for Deferred Sales Charge Options Under Client Focused Reforms
The Canadian Securities Administrators issued blanket orders granting transitional relief from enhanced conflicts of interest and suitability requirements for sales of deferred sales charge products during the period from June 30, 2021, to June 1, 2022. This relief addresses the regulatory overlap between the implementation of Client Focused Reforms and the ban on upfront sales commissions, allowing dealers time to transition away from the deferred sales charge option. Firms continuing to offer these products must still comply with relationship disclosure obligations, while all other Client Focused Reforms requirements apply fully after December 31, 2021.
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