Will 2017 be the last year advisors collect commissions?By Andrew Rickard | December 19 2016 01:30PM
In January, securities regulators will begin consultations about whether or not they should prohibit embedded commissions.
In June, the the Canadian Securities Administrators (CSA) published CSA Staff Notice 81-327, in which regulators said they were "exploring the option" of doing away with embedded commissions for mutual funds. Last week, the CSA revealed that they will publish their consultation paper on the subject on January 10, 2017.
"We have received feedback from stakeholders that it would be beneficial to review the consultation paper following the holiday season, so they have time to adequately review and prepare comments," say the regulators. "The CSA is committed to having a productive consultation process and receiving specific input on the issues raised in the consultation paper."
Once the paper is published, the CSA plans to keep the comment period open for 150 days; this is longer than normal, which the regulators say will “allow for broad consultation."