Regulatory Alerts2024-11-28
Regulation to amend Regulation 81-105 respecting Mutual Fund Sales Practices
The regulator amends Regulation 81-105 to restrict principal distributors from representing mutual funds outside their own family. The changes prohibit incentivizing representatives to recommend specific funds within the same family over others. Additionally, section 7.1 of the original regulation is repealed to enforce these new sales practice standards.
REGULATION TO AMEND REGULATION 81-105 RESPECTING MUTUAL FUND SALES PRACTICES Securities Act (chapter V-1.1, s. 331.1, par. (16) and (19.5))
- Regulation 81-105 respecting Mutual Fund Sales Practices (chapter V-1.1, r. 41) is amended by inserting, after section 2.3, the following: “2.4. Principal Distributors A principal distributor of a mutual fund shall not be a principal distributor of another mutual fund unless the other mutual fund is a member of the same mutual fund family.”.
- Section 4.2 of the Regulation is amended by inserting, before paragraph (1), the following: “(0.1) A principal distributor of a mutual fund that is also a principal distributor of another mutual fund that is in the same mutual fund family as the first-mentioned mutual fund shall not provide an incentive for any of its representatives to recommend a mutual fund of which it is a principal distributor over another mutual fund of which it is a principal distributor.”.
- Section 7.1 of the Regulation is repealed. Effective Date
- (1) This Regulation comes into force on (indicate here the date of coming into force of this Regulation). (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after (indicate here the date of coming into force of this Regulation), this Regulation comes into force on the day on which it is filed with the Registrar of Regulations.
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