14 December 2018 11:30
Paul C. Bourque
Theinvestment funds Institute of Canada (IFIC) has filed today its submission commenting on the proposed amendments by the canadian securities administrators (CSA) ni 81-105 sales practices of mutual funds (ni 81-105) and the consequential amendments.
In its submission, IFIC, primarily takes on the same tone as the flat that he had issued earlier this summer on the draft amendments to the rules of the canadian securities administrators (CSA). IFIC was then welcomed all the proposals of the CSA, except the elimination of the deferred acquisition costs.
Leave the choice
“Essentially, IFIC believes that it is important to let investors choose, as the advice and services they want, and decide how they should pay for it, said Paul Bourque, president and ceo of the IFIC. The memory of the IFIC makes recommendations aimed at preserving the choice available to investors, while making it clear that they should only pay for the services they receive. “
The CSA are proposing, inter alia, abolish the article of ni 81-105 that provides the current time to the option deferred sales charge (DSC). The IFIC remains in favour of the option with the deferred acquisition costs, which may suit certain investors who make the request ; this option should not be prohibited.
No commissions, no tips
The CSA also propose to prohibit the payment of a trailing commission to the broker who is not able to determine the suitability or provide investment advice.
The CORPORATION reiterates that investors should not pay advisory fees embedded in the distribution networks which do not offer any advice. Investors should have the freedom to choose the services of investment they want and the registrants should have the opportunity to choose their mode of remuneration.