Canadian Regulators Seek Input On Banning Embedded Fees

Law360, New York (January 10, 2017, 4:21 PM EST) -- The Canadian Securities Administrators on Tuesday called for comments on a proposal to ban the payment of embedded commissions to dealers by investment funds, a practice regulators say raises issues around investor protection and market efficiency.

The CSA, which is a council of provincial securities regulators that coordinates and harmonizes regulation for the Canadian capital markets, published a consultation paper and opened a 150-day comment period on the proposed rule change, asking for input from market participants and investors on its potential impacts.

Under the proposal,...
To view the full article, register now.