Regulatory Alerts2020-12-31
Regulation 81-105 Respecting Mutual Fund Sales Practices
Issued by Canadian securities regulators, this regulation establishes comprehensive rules governing the distribution and sales practices of mutual funds. It prohibits mutual fund managers and distributors from providing conditional payments or non-monetary benefits to participating dealers and representatives, while strictly defining permissible commissions and trailing fees. The framework further restricts internal dealer incentives to prevent biased recommendations and sets specific conditions for cooperative marketing and educational activities.
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