The Canadian Association of Insurance and Financial Advisors is reporting that the B.C. Securities Commission will allow fund dealers to pay commissions into unregistered personal corporations.

CAIFA reports that after several months of discussions between its legal staff and the BCSC, Doug Hyndman, chair of the BCSC, signed an order which will allow mutual fund dealers in B.C. to pay commissions and fees to the business corporations of their mutual fund salespersons.

To qualify, dealers must be members of the Mutual Fund Dealers Association. The corporation must be incorporated in Canada, and all the directors, officers and shareholders of the corporation must be registered salespersons of the same dealer or family members of those salespersons.

As well, the corporation and the dealer must have a written contract under which the dealer is liable for the acts and omissions of the corporation that relate to trading or advising in securities.

CAIFA notes that a qualifying corporation can therefore include a corporation controlled by dual licensees that is also licensed as a corporate insurance agent.