Regulatory Alerts2020-02-20
Regulation to amend Regulation 81-105 respecting Mutual Fund Sales Practices
Canadian securities regulators amended Regulation 81-105 to prohibit deferred sales charges by requiring that mutual fund distribution commissions be paid at the time of the trade. The amendments restrict commission rates from increasing based on sales volume, client asset growth, or specific periods within a year, while exempting distributions to residents of specified provinces and territories. The regulation also updates French terminology and clarifies disclosure requirements regarding ownership interests between mutual fund organizations and participating dealers.
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