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) published a consultation paper on Tuesday in which it proposes to consult with stakeholders for an extended comment period of 150 days on the option of discontinuing embedded commissions and making a transition to direct pay arrangements.

The move to consider a ban on embedded fees follows research the CSA commissioned from York University professor Douglas Cumming in 2015, which showed that these compensation structures distort sales and impact investment performance.

Included in this special feature are the notable developments in this area over the past few years highlighting how we got to the release of the CSA’s consultation paper. Photo copyright: cherezoff/123RF.

January 11, 2017

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

CSA paper puts trailer fees in the spotlight

Advisors are increasingly relying on trailing commissions as a source of revenue

  • December 13, 2012 December 13, 2012
  • 12:15