Client Focused Reforms and Embedded Commissions: AMF continues discussions with stakeholders
The Canadian Securities Administrators (CSA) today published two important notices:
- CSA Notice and Request for Comment in connection with the client focused reforms project, seeking comment on a proposed set of regulatory amendments to Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations and Policy Statement to Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations;
- CSA Staff Notice 81-330 (pdf - 184 KB)This link will open in a new windowUpdated on June 21, 2018Embedded Commissions Status Report on Consultation on Embedded Commissions and Next Steps, announcing the CSA’s policy decisions and next steps as regards the proposed regulatory reforms targeting embedded commissions.
In September 2018, as part of the proposed regulatory reforms targeting embedded commissions, the CSA will publish a Notice and Request for Comment, proposed regulatory amendments and an impact analysis.
These publications will allow the AMF and the CSA to pursue the discussions begun a few years ago with industry stakeholders and investor representatives to implement client focused reforms.
Seeking to draw on its role as a local regulator close to its markets, the AMF will once again organize, starting in the fall of 2018, in-person consultations to continue constructive dialogue with Québec stakeholders and facilitate additional feedback during the regulatory consultations. The AMF wishes to highlight their sustained efforts during the 2016 and 2017 consultations and encourages them to maintain their commitment in the months ahead.
The AMF also plans to organize in-person consultations on specific topics such as the banning of all forms of the deferred sales charge option and the payment to dealers that do not make a suitability determination.
Other issues raised, in particular in comments received during the consultations, will be discussed as part of additional in-person consultations. The members of the AMF Investment Products Advisory Committee will also be consulted on these regulatory reforms.
Information about any consultations organized by the AMF will be announced on a timely basis.
Concurrently, as an integrated regulator, the AMF will continue a similar dialogue with the insurance industry focusing on incentives management, and discussions held with its Canadian peers with a view to maintaining a harmonized regulatory framework for mutual funds and segregated funds. Various stakeholders will be invited in due course to participate in these exchanges.
Findings of AMF focus groups with individual investors
Following the publication of CSA Consultation Paper 81-408 – Consultation on the Option of Discontinuing Embedded Commissions(pdf - 1 MB)This link will open in a new windowUpdated on January 10, 2017OPTION OF DISCONTINUING EMBEDDED COMMISSIONS, in light of the potential repercussions of the option considered on individual investors, the AMF organized three focus groups with individual investors in October 2017. For more information about these focus groups, consult the report on principal findings (pdf - 149 KB)This link will open in a new windowUpdated on July 18, 2018Report on principal findings of Autorité des marchés financiers focus groups with individual investors of AMF focus groups with individual investors.