The Canadian Securities Administrators (CSA) is waiting until January 10, 2017 to publish a consultation paper about the option of discontinuing embedded commissions. The paper will examine the potential impacts of such a change on Canadian investors and market participants.
This announcement comes after CSA published Staff Notice 81-327 (Next Steps in the CSA’s Examination of Mutual Fund Fees) in June 2016, a notice that indicated CSA’s intention to publish a paper in 2016 on discontinuing embedded commissions.
Since June, the CSA has received feedback from stakeholders who say it would be better to release such as paper after the holidays. The CSA says the consultation paper will be published for a 150-day comment period; this longer than normal consultation period is intended to allow for broad commentary.
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