The Canadian Securities Administrators (CSA) is reviewing the practices of mutual funds that have principal distributor relationships with registrants to distribute their securities. The goal of the review is to gauge whether additional updates to the mutual fund sales practice rule are needed to improve investor protection and maintain investor confidence (Review).
The first phase of the CSA’s review includes surveying investment fund managers and principal distributors about the scope of their arrangements. The survey for investment fund managers identified as using a principal distributor was sent in early September. The information obtained will provide a better understanding of the sales practices and distribution structures of mutual funds and registrants. It will also help the CSA determine whether regulatory amendments to National Instrument 81-105 Mutual Fund Sales Practices or other instruments are needed in light of the CSA’s recent work in developing its client-focused reforms.
The Review is aligned with the 2022 – 2025 CSA’s Business Plan. The Business Plan is available for download from the website of the CSA.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
