IFIC Makes Submission to CSA on NI 81-105
TORONTO, Dec. 12, 2018 (GLOBE NEWSWIRE) — The Investment Funds Institute of Canada (IFIC) today filed its submission commenting on the Canadian Securities Administrators’ (CSA) proposed amendments to National Instrument 81-105 Mutual Fund Sales Practices (NI 81-105) and Related Consequential Amendments.
“Fundamentally, IFIC believes that it is important to provide choice for investors, both in the advice and services they choose and in how they prefer to pay for them,” said Paul Bourque, President and CEO, IFIC. “IFIC’s submission offers recommendations that preserve this investor choice, while also making clear that investors should only pay for the services they receive.”
The CSA’s proposal includes repealing the section of NI 81-105 that currently permits the deferred sales charge (DSC) payment option. IFIC continues to support the availability of the DSC payment option; the DSC option can be appropriate for certain investors who choose it and should not be prohibited.
The CSA proposal also seeks to prohibit the payment of trailing commissions in circumstances where it is not possible to make a suitability determination or offer investment advice. As IFIC has previously stated, investors should not pay an embedded advisory fee on channels that do not offer advice. Investors should be free to choose how they access investment services, and registrants should have flexibility in how they are compensated.
To review the IFIC submission, please visit IFIC.ca.
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. To learn more about IFIC, please visit IFIC.ca.
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