Ontario Regulator To Ban Deferred Sales Charges On Mutual Funds Advertisment The Ontario Securities Commission (OSC) says it is planning to ban deferred sales charges on mutual funds starting next year.
The securities regulator has announced that it is preparing to prohibit the payment of upfront sales commissions by fund organizations to dealers. The move will harmonize the watchdog s policy on such fees with the rest of Canada.
Deferred sales charges are paid by investors when they withdraw money from mutual funds before a set date. Critics have long opposed such fees because advisers earn upfront commissions higher than they would on other types of mutual funds, potentially incentivizing them to push deferred sales charge funds over ones with lower costs.
Winnipeg Free Press By: Tara Deschamps, The Canadian Press Posted:
Last Modified: 3:50 PM CDT Friday, May. 7, 2021 Save to Read Later
TORONTO - The Ontario Securities Commission is moving to ban deferred sales charges on mutual funds a move that will harmonize the watchdog s policy on such fees with the rest of the country.
The TSX is shown on a business news ticker is seen in the Financial District in Toronto, Monday, March 9, 2020. The Ontario Securities Commission says it will move toward banning deferred sales charges on mutual funds in the province. THE CANADIAN PRESS/Cole Burston
TORONTO - The Ontario Securities Commission is moving to ban deferred sales charges on mutual funds a move that will harmonize the watchdog s policy on such fees with the rest of the country.
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TORONTO , May 07, 2021 (GLOBE NEWSWIRE) The Canadian Foundation for Advancement of Investor Rights (FAIR Canada) applauds the announcement from the Ontario Securities Commission (OSC) indicating that it will ban deferred sales charges (DSC) on mutual funds in Ontario, anticipated to take effect on June 1, 2022.
“This is a huge win for investors in Ontario,” said Jean-Paul Bureaud, FAIR Canada’s Executive Director. “We are very pleased to see that Ontario will be joining the rest of Canada in banning these charges. Not only will this reduce investor confusion, but it will eliminate a fee structure that has long been recognized as creating a conflict of interest between investors and their advisors.”
James Langton
The Ontario Securities Commission has named three new members to its independent Investor Advisory Panel (IAP).
The IAP is adding two representatives from the legal aid clinics for investors, established at Osgoode Hall Law School and at the University of Toronto in the past couple of years.
Joining the IAP are Brigitte Catellier, adjunct professor and co-director of Osgoode’s investor protection clinic, and Ivy Lam, director of U of T’s clinic. Catellier is also currently vice president of corporate governance at Meridian Credit Union.
The third new IAP member is Supriya Kapoor, founder and principal of regulatory consultancy, Aurelius GRP.
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The Ontario Securities Commission has named three new members to its independent Investor Advisory Panel (IAP).
The IAP is adding two representatives from the legal aid clinics for investors, established at Osgoode Hall Law School and at the University of Toronto in the past couple of years.
Joining the IAP are Brigitte Catellier, adjunct professor and co-director of Osgoode’s investor protection clinic, and Ivy Lam, director of U of T’s clinic. Catellier is also currently vice president of corporate governance at Meridian Credit Union.
The third new IAP member is Supriya Kapoor, founder and principal of regulatory consultancy, Aurelius GRP.