A policy signalling whether Canada intends to ban embedded mutual fund fees is to be released in the first half of next year, more than three years after Canadian regulators began studying the issue.
The Canadian Securities Administrators, an umbrella group of the provincial securities regulators that has been studying mutual fund fees since 2012, released the time frame Thursday along with the latest research commissioned to look into the impact of embedded fees — sales and trailing commissions — that have become controversial in recent years.
Among the findings of the independent study, which was based on industry data, is that better-performing mutual funds attract more sales, but the influence of past performance is “considerably reduced” when fund manufacturers pay sales and trailing commissions.
Barbara Shecter- Globe and Mail – October 22, 2015.
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