“The status quo won’t continue”: Potential DSC changes ahead

April 15, 2019

Partner Jim Hong spoke with Advisor’s Edge in an article on the Canadian Security Administrators’ (CSA) proposed ban on deferred sales charges, telling the publication that “the status quo won’t continue.”

The industry is shifting and the regulatory landscape is uncertain as the Ontario government rejected the CSA proposal.

Jim said if the provincial government was to remain against the proposals, it would be unlikely that fund companies would maintain a separate fund platform for only one province.

“I don’t know if a ban will ever happen, but something’s going to change. The status quo won’t continue,” Jim said.

Moving forward, Jim suggested advisors consider the impact a fee-based model would have for their businesses. He also believes it’s in part the advisors’ responsibility to ensure their clients do not feel DSCs have been abused or poorly disclosed.

“To some extent, it’s up to the advisors to make sure their clients don’t feel that way,” he said.

For more news related to securities regulatory work and capital markets, see the relevant practice pages.


Press Contact