{"id":899,"date":"2023-11-12T13:04:44","date_gmt":"2023-11-12T13:04:44","guid":{"rendered":"https:\/\/financeify.ca\/?p=899"},"modified":"2023-11-12T13:04:44","modified_gmt":"2023-11-12T13:04:44","slug":"fsra-proposes-dsc-ban-for-segregated-funds","status":"publish","type":"post","link":"https:\/\/financeify.ca\/index.php\/2023\/11\/12\/fsra-proposes-dsc-ban-for-segregated-funds\/","title":{"rendered":"FSRA proposes DSC ban for segregated funds"},"content":{"rendered":"

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The sale of funds distributed under a deferred sales charge (DSC) structure will be banned by mid-2023 under a proposal by the Financial Services Regulatory Authority of Ontario (FSRA).<\/p>\n

The regulator has proposed changes to its regulations that will ban the sale of new DSC segmented funds from June 1, 2023. The proposed changes will also introduce additional disclosure requirements for existing DSC sales to enhance consumer protection.<\/p>\n

FSRA said the proposals, which are open for comment until February 23, 2023, would align the regulation of seg funds with the regulation of mutual funds. Securities regulators’ ban on DSCs took effect in June.<\/p>\n

\u201cInsurers and agents in Ontario must treat customers fairly and provide them with product options that meet their needs,\u201d Huston Loke, executive vice president of market conduct at FSRA, said in a statement.<\/p>\n

\u201cThese fees raise serious protection concerns for consumers who may need to access their own investments. \u201cFSRA intends to discontinue the sale of new individual segregated fund contracts that include DSC and ensure fairness for customers who remain on existing contracts,\u201d he added.<\/p>\n

Back in February, insurance regulatory groups \u2013 the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organization (CISRO) \u2013 signaled their intention to ban DSCs for seg funds by June 2023, citing \u201chigh risk poor consumer outcomes\u201d for these structures.<\/p>\n

Earlier this month, CCIR and CISRO also completed separate consultations on upfront compensation models involving non-DSC commission structures, such as advisor chargeback structures, as part of their efforts to improve consumer protection in the insurance sector.<\/p>\n

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The sale of funds distributed under a deferred sales charge (DSC) structure will be banned by mid-2023 under a proposal by the Financial Services Regulatory Authority of Ontario (FSRA). The regulator has proposed changes to its regulations that will ban the sale of new DSC segmented funds from June 1, 2023. The proposed changes will […]<\/p>\n","protected":false},"author":1,"featured_media":900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[18],"tags":[306,305,332,139,378,191],"class_list":{"0":"post-899","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-seg-fund-investments","8":"tag-ban","9":"tag-dsc","10":"tag-fsra","11":"tag-funds","12":"tag-proposes","13":"tag-segregated"},"aioseo_notices":[],"yoast_head":"\nFSRA proposes DSC ban for segregated funds - Financeify<\/title>\n<meta name=\"description\" content=\"The sale of funds distributed under a deferred sales charge (DSC) structure will be banned by mid-2023 under a proposal by the Financial Services\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/financeify.ca\/index.php\/2023\/11\/12\/fsra-proposes-dsc-ban-for-segregated-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FSRA proposes DSC ban for segregated funds - 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