Regulatory Alerts2026-06-11
Canadian Securities Administrators Publish Final Amendments to Principal Distributor Model
The Canadian Securities Administrators issued final amendments to the principal distributor model to enhance investor protection and market confidence. The changes restrict principal distributors to acting exclusively for mutual funds within the same family while mandating greater transparency regarding their arrangements and compensation in key disclosure documents. These regulatory updates apply across all Canadian provinces and territories to harmonize oversight of mutual fund distribution practices.
TORONTO and MONTREAL – The Canadian Securities Administrators (CSA) today announced the publication of final amendments to the principal distributor model in the distribution of mutual fund securities. The changes are intended to improve investor protection and help maintain investor confidence in Canada’s capital markets.
A principal distributor is a dealer that has an exclusive right in the distribution of, or benefits from a feature that gives them a material competitive advantage over others in the distribution of, mutual fund securities.
The amendments clarify that a dealer may act as principal distributor only for mutual funds in the same mutual fund family. The amendments do not affect the ability of a principal distributor to also distribute mutual fund securities as a participating dealer to multiple mutual fund families. The amendments also enhance transparency by requiring disclosure of principal distributor arrangements and related compensation in the prospectus, fund facts document and the annual report on charges and other compensation.
The CSA, the council of the securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.
For investor inquiries, please contact your local securities regulator .
CSA Notice of Amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, National Instrument 81-101 Mutual Fund Prospectus Disclosure, National Instrument 81-102 Investment Funds And National Instrument 81-105 Mutual Fund Sales Practices and Changes to Companion Policy 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, Companion Policy 81-102 Investment Funds and Companion Policy 81-105 Mutual Fund Sales Practices The Principal Distributor Model
Alberta , British Columbia , Manitoba , New Brunswick , Newfoundland and Labrador , Northwest Territories , Nova Scotia , Nunavut , Ontario , Prince Edward Island , Québec , Saskatchewan , Yukon
For media inquiries, please contact:
Ilana Kelemen
Canadian Securities Administrators
Julia K. Mackenzie
Ontario Securities Commission
Sylvain Théberge
Autorité des marchés financiers