FAIR Canada has submitted comments to Canadian securities regulators, stating that urgent reforms must be made to the mutual fund fee structure in order to protect consumers. Improved disclosure is important but inadequate to address the serious conflicts of interest presented by embedded (hidden) commissions (referred to as trailing commissions). These conflicts are systemic and structural in nature and are not addressed by current regulatory initiatives. To address these serious issues, we urge the banning of third-party embedded commissions.
Benefits of banning third party embedded commissions include:
To read our submission, click here.