The Nova Scotia Securities Commission has approved the decision of the Mutual Fund Dealers Association to extend the transition period for flowing reps’ commissions through personal corporations until the end of 2006.

A notice issued by the NSSC indicates that the commission accepts the MFDA’s suspension of its rule regarding the payment of commissions for a transition period. The rule requires members to pay their commissions directly to reps. The MFDA’s board approved further suspension of this rule on February 6.

During the transition period, MFDA members may pay reps’ commissions directly to a reps’ personal corporation, provided that the corporation does not trade or advise in securities. The transition period runs until Dec. 31, 2006.

In the NSSCnotice, the commission says it, “recognizes that changes to the framework applicable to the relationships amongst mutual fund dealers and their salespersons are necessary to address the issues raised by the mutual fund industry regarding business structures. The commission acknowledges that staff of the various securities commissions together with the MFDA and industry representatives are working to develop proposed solutions.”