Amendments to Policy Statement to Regulation 81-102 respecting Investment Funds

Canadian securities regulators amended Policy Statement to Regulation 81-102 to explicitly prohibit investment fund managers from charging redemption fees based on the initial sales charge option. This clarification ensures that managers cannot impose such fees on securityholders when redeeming mutual fund securities. The prohibition does not apply to fees charged by the mutual fund itself, such as those for short-term trading or large redemption orders.

AMF published 22 documents in the last 30 days — get each new one by email the day it lands.

CHANGES TO POLICY STATEMENT TO REGULATION 81-102 RESPECTING INVESTMENT FUNDS

Policy Statement to Regulation 81-102 respecting Investment Funds is amended by
inserting, after section 10.6, the following:
“10.7. Prohibition of Fees for Redemptions
Section 10.2.1 of the Regulation prohibits a manager from charging a fee to a
securityholder for the redemption of mutual fund securities. This would have the effect of prohibiting a manager from charging a fee to securityholders for redemptions based on the sales charge option under which the securities were initially purchased. This prohibition does not impact fees charged by a mutual fund (as opposed to a manager) to investors in connection with the redemption of mutual fund securities that are not based on the sales charge option, such as fees for short-term trading and large redemption orders.”.

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

This document amends: Regulation 81-102 Respecting Investment Funds

Source: Autorite des marches financiers Quebec — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works