But PMAC stands behind the CSA’s concerns with these compensation arrangements and says regulators are “taking a bold step forward”
Although regulators have yet to make a decision on the matter, they’re formally considering whether to mandate a “direct pay” structure
The association notes that the CSA’s and the self-regulatory organizations’ rules already address compensation-related conflicts of interest
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
The survey is being introduced in advance of an expected CSA proposal to ban on embedded mutual fund commissions
Pierre Lortie, senior business advisor, Dentons Canada LLP, says evidence suggests retail investors will resist paying upfront fees for advice, leaving them at risk of failing to save enough for retirement.
DSC is an expensive sales option for mutual fund companies
Several proposed reforms “are either impractical, unenforceable, or would adversely affect investors’ access to advice”