Home In Depth Special Reports The end of embedded commissions? How we got here

The end of embedded commissions? How we got here

The Canadian Securities Administrators (CSA) has decided not to ban embedded commissions after all. Instead, the group of provincial and territorial regulators have proposed new rules for dealers and financial advisors to address any potential conflicts of interest in clients’ best interest or avoid them altogether, as well as to eliminate all forms of deferred sales charges (DSCs).

Included in this special feature are the notable developments in this area over the past few years highlighting how we got to the CSA’s decision.

June 22, 2018

Split reactions to CSA proposals

Industry groups and investor advocates agreed on some of the proposed rules, but opinions were divided on the decision to allow embedded commissions to remain in place

  • June 22, 2018 June 22, 2018
  • 12:44

Opinion: CSA decision a big win for the industry

Dealers and advisors can breathe a sigh of relief that there is no blanket ban on trailer commissions and no statutory best interest standard

  • June 21, 2018 June 22, 2018
  • 10:05

CSA stands pat on embedded commissions

But regulators are banning DSCs and enhancing regulatory requirements for registrants to avoid situations that place them in a conflict of interest

  • June 21, 2018 July 12, 2018
  • 10:00

IFIC, Advocis push back against potential embedded commissions ban

But PMAC stands behind the CSA’s concerns with these compensation arrangements and says regulators are “taking a bold step forward”

  • January 11, 2017 January 11, 2017
  • 14:30

CSA launches consultation on banning embedded commissions

Although regulators have yet to make a decision on the matter, they’re formally considering whether to mandate a “direct pay” structure

  • January 10, 2017 December 19, 2017
  • 11:00

IFIC calls on the CSA to reconsider potential embedded commissions ban

The association notes that the CSA’s and the self-regulatory organizations’ rules already address compensation-related conflicts of interest

  • January 5, 2017 January 5, 2017
  • 12:30

CSA delays release of paper on reforms to mutual fund fees

The regulators will now release the paper on Jan. 10, 2017, which will go then go out for a longer than usual comment period of 150 days

  • December 15, 2016 December 19, 2017
  • 12:30

Hard data on the impact of trailer fees

New research confirms regulator's concerns about fund fees and potential conflicts of interest

  • November 6, 2015 November 6, 2015
  • 00:00

CSA awards fund fee research contracts

Finance professor to investigate whether commissions influence fund sales

  • September 19, 2014 December 19, 2017
  • 11:00

CSA proposals for fund fees, best interest duty come together

Status reports conclude more work is necessary in both areas

  • December 17, 2013 December 19, 2017
  • 11:30