Canadian Securities Administrators is looking for research proposals from firms that want to help examine Canada’s mutual fund fee structure.
All findings will help advance a policy decision on mutual fund fees, says CSA, since it’s decided that third-party research is needed before it can determine whether regulatory action is needed.
Firms are invited to submit proposals for two independent pieces of research. The regulator wants to find out if:
- sales and trailing commissions influence fund sales; and
- whether the use of fee-based vs. commission-based compensation changes the nature of advice and investment outcomes over the long term.
Interested parties should respond to CSA by 2:00pm on May 5, 2014.
This request follows the release of CSA’s December 2012 discussion paper on the issues arising from our country’s current mutual fund fee structure. After comments were received, the regulator conducted extensive stakeholder consultations, including a public roundtable on June 7, 2013, and discussion forums in the summer and fall of 2013.