Region

Jurisdiction

Regulator

2024-11-28

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.

Canada

Autorite des marches financiers Quebec

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.”.